The Capital Development Authority (CDA), with federal cabinet approval, has introduced a time-bound relief package for Islamabad’s hotel sector by rationalizing Floor Area Ratio (FAR) charges.
Under this initiative, hotel and motel developers can increase their FAR within a structured framework, promoting vertical expansion and attracting fresh investment in the city’s hospitality industry. The relief will remain effective until December 31, 2028, providing a clear timeframe for developers to enhance existing projects or start new ones under the revised policy.
This facilitation specifically targets projects seeking additional built-up area and forms part of broader efforts to improve ease of doing business while supporting high-quality urban development in the capital. To ensure compliance, developers must submit a bank guarantee or performance bond equivalent to the value of the additional FAR granted, ensuring projects are completed on time.
The CDA has warned that failure to meet deadlines or conditions will result in withdrawal of the relief, with applicable charges recoverable immediately. The incentive applies only to approved projects, and any unauthorized transfer or change in ownership will void the facilitation. Officials said the policy aims to foster sustainable urban growth while maintaining regulatory oversight over Islamabad’s real estate and hospitality sectors.
In another news, read more about: Pakistan, US Sign Agreement to Renovate Roosevelt Hotel
