ISLAMABAD – Amendment in Ordinance empowered Capital Development Authority (CDA) to compensate through land sharing or monetary means while development authority in capital will be bound pay 8 percent interest on Late Land Payments.
The amendment was made to address longstanding grievances related to land acquisition in the capital, the federal government has officially notified the Capital Development Authority (Amendment) Ordinance, 2025, after its approval by President of Pakistan.
The ordinance introduces key reforms aimed at safeguarding the rights of landowners and affectees in Islamabad, ensuring that compensation for acquired land is fair, transparent, and equitable. The new provisions offer a broader framework for compensation—allowing monetary payments, land sharing, or other forms of compensation as determined by the Capital Development Authority (CDA).
CDA Amendment 2025
Under amended law, Deputy Commissioner has been empowered to issue two separate awards: one for the land and another for any structures or buildings situated on it. This is intended to provide greater clarity and fairness in the valuation process.
Pending land or property compensation cases that remain unresolved as of October 30, 2025, will now be dealt with under the Rehabilitation Policy in effect at that time. The policy ensures that those affected receive not only fair compensation but also support for rehabilitation and resettlement.
According to updated Section 30 of the ordinance, any land allotted in exchange must match the original land in terms of value, access, and utility. Moreover, Section 32A introduces a provision for delayed compensation, obligating the CDA to pay an additional 8% annual interest from the date possession is taken until full payment is made.
Another significant addition, Section 33B, addresses the rights of legally incapacitated individuals. In cases involving minors or individuals unable to manage their finances, the Deputy Commissioner can authorize a guardian or representative to receive the compensation on their behalf.
Activists welcomed the ordinance as a progressive move, calling it a much-needed reform to ensure justice for landowners and residents affected by CDA development projects.
