The Federal Government Employees Housing Authority (FGEHA) has reversed its earlier stance and approved the disposal of a seven-star hotel and an international hospital plot in Islamabad’s Sector G-13 through public-private partnership (PPP), in addition to the option of open auction.

The decision was made during the 40th executive board meeting of the FGEHA, chaired by Housing Minister Mian Riaz Hussain Pirzada on May 9. The board revoked a previous resolution from December 2023 that mandated auction-only disposal, now allowing for both PPP and lease-and-operate models.

Officials told the board that this policy shift aligns with the Prime Minister’s directives and was developed in coordination with the Public Private Partnership Authority (P3A). Multiple consultative sessions led to the recommendation of these new disposal modes to attract long-term investment.

Beyond the hotel and hospital plots, FGEHA has identified 11 additional sites for development via PPP. These include plots for an IT tower and an international office hub in G-13, a shopping mall in the Skyline Project Islamabad, an international school in G-14/2, and various residential and commercial projects in Rawalpindi, Karachi, and Murree.

The board approved the overall plan but deferred the disposal of the Murree property due to an ongoing legal dispute over ownership, which dates back to pre-partition claims.