ISLAMABAD: President Islamabad Chamber of Commerce and Industry (ICCI) Sardar Tahir Mehmood has strongly opposed the Capital Development Authority’s (CDA) recent decision to massively increase the Floor Area Ratio (FAR) fee structure, terming it unjustified, anti-business, and detrimental to the city’s construction and investment environment.
He said that the sharp escalation in FAR rates—ranging up to Rs 11,586 per square foot in some sectors—would not only put an additional financial burden on builders and property developers but also directly impact housing affordability and slow down real estate activity across Islamabad.
Sardar Tahir Mehmood emphasized that at a time when the construction sector is already struggling with high material costs, rising interest rates, and declining investor confidence, such abrupt hikes will further discourage new development and reduce employment opportunities for thousands of workers associated with the construction value chain.
ICCI Senior Vice President Tahir Ayub and Vice President Irfan Chaudhry noted that the CDA’s decision to revise rates on the basis of the General Price Index (GPI) without consulting key stakeholders, including ICCI and construction associations, was highly regrettable. “Policies affecting the business community must be framed through dialogue and consensus, not unilateral decisions that disrupt economic activity,” they added.
They urged the CDA to immediately withdraw the revised FAR rates and hold consultations with the chamber, real estate associations, and builders to devise a more balanced and rational policy. He said that instead of overburdening the business community, the CDA should focus on improving its service delivery, speeding up building plan approvals, and facilitating investment in high-rise development to promote vertical growth in line with modern urban planning trends.
They further reiterated that ICCI stands ready to collaborate with CDA in formulating a practical and investor-friendly framework that supports both revenue generation for the authority and sustainable urban development for Islamabad.
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