The Special Investment Facilitation Council (SIFC) has initiated a plan to replace outdated government houses in Islamabad with high-rise buildings, aiming to generate billions of rupees for the national treasury. This proposal targets areas such as F-6, G-6, and G-7, where single-storey government residences currently occupy significant land.
In sectors like F-6, spacious houses for high-ranking officials, including federal secretaries, are accompanied by servant quarters. A government official, speaking anonymously to Dawn, emphasized the need for a vertical construction approach to optimize land use in Islamabad.
A recent study revealed that in the G-6/1 sub-sector alone, government houses occupy 86 acres. By adopting vertical construction, these residences could be accommodated on just nine acres, freeing up 77 acres valued at over Rs52 billion.
The concept of replacing these houses with high-rise buildings has been discussed for two decades, but no concrete action has been taken. Last week, SIFC formally requested comments from the Capital Development Authority (CDA) on this issue, particularly concerning G-6/1.
The SIFC’s interest was piqued by a research article from the Pakistan Institute of Development Economics (PIDE) on “dead capital,” prompting them to engage with the CDA, which manages Islamabad’s land. The article highlighted the inefficiency of underutilized state land, which becomes a financial burden and restricts economic growth.
According to the PIDE study, converting single-storey houses into high-rise structures in G-6/1 could free up 77 acres, potentially generating Rs55.2 billion in revenue and increasing the annual GDP by 0.09%. The study suggests that these government houses could be consolidated into six high-rise buildings.
The SIFC’s letter to the CDA emphasized the need for efficient land management to meet urban demands and promote city development. It cited examples from the UK and India, where similar strategies have been successfully implemented. The letter also called for a centralized database for state-held land and the involvement of asset management experts to unlock dormant potential.
The research article “Dead Capital,” authored by Azwar Mohammad Aslam, was shared with the CDA alongside the SIFC’s official letter. The SIFC plans to proceed with the proposal after reviewing the CDA’s input.
