Daily Times

ISLAMABAD: The incumbent administrant of the CDA is following the prevailing policy of selling fixed assets to meet its routine expenses as it has once again auctioned 08 commercial plots worth Rs.3.75 billion on Tuesday.

The plots were auctioned on the first day of a two-day auction held by the CDA at the Jinnah Convention Centre in Islamabad. The auction will continue on Wednesday as it will be the concluding day.

Commercial plots from I-8 Markaz, Diplomatic Enclave, G-11 and D-12 were auctioned on the first day. On the first day of the two-day auction Plot No. 8 in I-8 Markaz was auctioned at Rs.398000 per square yard, Plot No. 4 for a marriage hall in I-8 Markaz was auctioned at 120,000 per square yard, Plot No. 4 in G-5 Markaz for commercial use was auctioned at Rs.423000 per square yard, Plot No. 14 at G-5 Markaz for apartments was auctioned at Rs. 423000 per square yard, Plot No. 11 in G-11 for economy flats was auctioned at 123000, Plot No 5A for a class three shopping centre was auctioned at 452000, Plot No. 5B in G-11-3 for a class three shopping centre was Rs.452000 and Plot No. 2 in D-12/4 for a class three shopping centre was auctioned at Rs.376000.

A nine-member committee headed by the Member Finance, Dr. Fahad Aziz, supervised the auction proceedings. The Member (Planning), Dy. D.G (Finance), Dy. D.G (L&E), Dy. D.G (Law), the Director (UP), the Director (RP), the Director Public Relations and the Director Estate Management-II of the CDA were the members of the committee. The committee will submit its recommendations to the CDA Board. The CDA Board is the competent authority to accord a final approval to the recommendations after the conclusion of the auction process.

The Mayor of Islamabad and the Chairman CDA, Sheikh Ansar Aziz, while expressing his pleasure over the successful auction of the commercial plots on the first day of the auction process, said that the new CDA administration had managed to fetch investors earlier interested in other private housing societies. “In future with our consistent investor friendly policies, the CDA will get even better response. The ongoing auction is decidedly successful in comparison with previous auctions which failed to attract investors,” he commented.

Although, the Authority has once again received a huge amount but the prevailing policy of auctioning plots to meet expenditures is leading the civic body towards bankruptcy as selling fixed assets to pay recurring costs is not a wise solution in any economic term.

Instead of finding or creating sustainable sources to cover the expenditure of the civic body, the higher ups of the CDA are more interested in “to sell and spend but not in saving anything.”

As per the budget document 2015-16, the civic body met its 60 per cent expenditure through the auction of plots or by recovering the balance amount of the previously sold plots.

The Authority has generated only 16 per cent budged through other sources i.e. taxes, water charges; whereas, the federal government had also given a loan of five billion rupees to the Authority which was 23 per cent of the last budget. According to budget documents, the civic body earned 12619.56 million rupees in the last financial year by selling plots, which includes 1236.36 million of commercial plots, 897 million of Blue Area’s plots, 4933 million through balance recoveries against sold plots and 5643.20 through sale of plots in Park Enclave I, II and the Margalla Retreat.

Unfortunately, the Authority sells hundreds of commercial and residential plots each year and spends the whole money on recurring costs and saves noting, which may ultimately lead the institutions towards bankruptcy.