A Senate panel was informed on Thursday that heavy taxation may have contributed to the failure of a recent auction of commercial plots conducted by the Federal Government Employees Housing Authority (FGEHA) in Islamabad.
The Senate Standing Committee on Housing and Works, chaired by Senator Nasir Mehmood, convened at Parliament House to discuss the unsuccessful auction held on August 7, among other issues.
The committee was briefed on the auction of a 13-kanal plot within FGEHA’s Lifestyle Residency Apartments (EHFPRO) project, which was divided into three plots to maximize revenue potential. Despite these efforts, the auction failed to attract any buyers. The Director General (DG) of FGEHA attributed the lack of investor interest to the slow progress of the project and the recent increase in taxes from 43% to 63% after July 8, which deterred potential investors.
Officials detailed the execution of the project’s advertisements, noting that the first advertisement was released on July 5, 2024, followed by several others. Despite these efforts, Senator Khalida Ateeb highlighted that the lavish advertising did not yield the desired outcomes, resulting in significant financial losses. Chairman Mehmood urged the committee to find solutions to overcome this stagnation.
The meeting also addressed the issue of allegedly illegally occupied land belonging to the Public Works Department (PWD) by the Tehsil Municipal Administration (TMA) Murree. Officials reported multiple civil court cases regarding the possession of Constantia Lodge in Murree. Of the 36-kanal project, 6.8 kanals are under the Ministry of Housing’s control, while 18 kanals are occupied by TMA Murree, and 12 kanals are held by Faujdar Khan (Chowkidar) and his children. Legal proceedings have been initiated, and the Prime Minister has directed that the litigation be resolved expeditiously.
The DG FGEHA provided updates on the progress of Islamabad sectors F-12 and G-12, announcing an award of Rs7.23 million per kanal for these sectors on April 23, 2023. He also discussed complications with landowners in sectors F-14 and F-15, noting that weekly hearings are ongoing and that sector F-12 will be launched once the Supreme Court’s judgment is finalized. The development progress and challenges in sectors G-13 and G-14 in Islamabad were also reviewed.
Senator Saifullah Abro inquired about the list of officers from the Ministry of Housing on deputation. Additionally, the committee addressed a question raised by Senator Raja Nasir regarding the allocation of Imam Bargahs in sectors developed by FGEHA. Officials assured that religious sanctity would be maintained during the allocation process. Chairman Mehmood directed that laws and rules be formulated to ensure the sanctity of all religious communities is respected.