Two months into financial year, Capital Development Authority yet to announce annual budget

Two months into financial year, Capital Development Authority yet to announce annual budget

ISLAMABAD: The Capital Development Authority (CDA), which is launching one mega development project after another worth billions of rupees, seems oblivious to announcing its budget for fiscal year 2026-27. The civic body normally announces its budget in July every year. However, this time around, its annual budget has not yet been announced. On the other hand, it has continued to focus on launching a large number of development projects. Besides other development projects, the CDA is also all set to launch its major project for the construction of the New Islamabad Convention, Exhibition and Expo Centre (NICEEC), for which the authority received a whopping Rs37 billion as the lowest bid. Some other projects, including the construction of an Islamabad Cricket Stadium and Safari Park, are also in the pipeline. However, the civic agency has not announced its annual budget for the financial year 2026-27 yet. Every year, the CDA sets targets for receipts and development projects, listing all new projects. Civic agency plans major projects despite delay in approval of annual budget Last year, on July 30, the CDA approved a Rs90.2 billion surplus budget for fiscal year 2025-26, with a major chunk allocated for development and tourism-related projects. According to last year’s budget documents, the total outlay of the budget was Rs90.2 billion, with Rs47.7 billion expected from self-financing, including the auction of commercial and residential plots, and Rs23.5 billion from various taxes. Besides this, the CDA had started its financial year 2025-26 with a Rs17.1 billion opening balance and Rs1.8 billion in funds transferred from the Metropolitan Corporation Islamabad, showing a surplus amount of Rs8.2 billion. The documents showed that the CDA had earmarked Rs17 billion for several tourism-related projects, including a zipline, a Safari Park and the construction of a cricket stadium near Sector D-12. The said budget also included funds for major infrastructure projects, such as the T Chowk Flyover and Shaheen Chowk Flyover, which have already been completed this year, and the extension of Margalla Road from GT Road to M-1 (Motorway-I), which is currently ongoing. When contacted, the CDA, in its written reply, confirmed to Dawn that this year’s budget had not yet been approved. However, the civic agency stated, “[Budget] will be presented before board within a week. Extensive working has been done, this year and will be presented on pattern of federal budget. Payroll will be issued through SAP first time.” Reduction offered in NICEEC bid Recently, the CDA opened financial bids for the construction of NICEEC, and the lowest bid turned out to be a whopping Rs37 billion. The original PC-I was worth Rs16 billion as the project was initially designed on an RCC structure. However, in the revised design, changes were made, and steel fabrication was added, with a domed roof to be made of steel, while the height was also increased. The design was presented by construction firms, and the CDA’s committee surprisingly approved it, apparently without keeping in view the increase in rates compared to the RCC structure, thus increasing the scope of the work. Subsequently, both qualified construction firms submitted revised financial bids, and the bid submitted by the China Construction Third Engineering Bureau-led JV turned out to be the lowest at Rs37 billion. Before moving forward, the CDA engaged its consultant to check the reasonableness of the bid rate. Meanwhile, sources said that the construction company voluntarily offered a Rs3 billion discount, telling the CDA that it was ready to carry out the work for Rs34 billion. However, so far, the bid has neither been accepted nor rejected. NICEEC is being planned ahead of next year’s Shanghai Cooperation Organisation (SCO) summit in Islamabad. According to a CDA document, “the flagship facility will serve as a world-class multi-functional venue for conventions, exhibitions, expos, trade fairs and cultural events, and will also host the SCO summit in 2027.” The new convention centre will be built near the Bhara Kahu Bypass in the Malpur area, about three kilometres from the existing Jinnah Convention Centre. Meanwhile, sources said that the CDA’s financial condition was not sound when compared to the scale of planned development works, as several multibillion-rupee projects, including the dual carriageway along Islamabad Expressway and the Margalla Road extension project, are currently in progress. Recently, the CDA Board approved a summary allowing the CDA’s finance wing to seek Rs20 billion from the federal government as a bridge loan for sector development. Published in Dawn, August 22nd, 2026