ISLAMABAD: The Capital Development Authority (CDA) on Tuesday finally approved its Rs152 billion budget for the fiscal year 2026-27, the highest in the history of the civic agency.

CDA board, which met with Chairman Sohail Ashraf in the chair, approved the budget with a major chunk going to development projects.

According to the budget documents, Rs112 billion has been earmarked for new and ongoing development works and Rs40 billion set aside for non-development expenditure.

The CDA is expecting Rs152.5 billion receipts - with 74pc from self-finance (including auction of commercial and residential plots and from various taxes), 19pc from revenue receipts and a 7pc opening balance.

Rs112bn earmarked for new and ongoing projects and Rs40 billion for non-development expenditure

The documents show that 74pc of the budget will be spent on development related projects, 24pc on non-development while two per cent will be spent on Metropolitan Corporation Islamabad (MCI).

For 26 priority projects, Rs55 billion has been earmarked while Rs16 billion will be utilised for 63 new projects, including sector development, infrastructure, sewerage and metro buses related expenditure.

Moreover, Rs13.5 billion has been allocated for 246 ongoing works. Similarly, Rs7 billion has been allocated for pending liabilities and Rs19 billion for lump-sum provisions.

Last year, CDA had earmarked Rs90.2bn, with Rs47.7bn expected from self-finance receipts. It had also earmarked Rs17bn for several tourism-related projects, including a Zipline, a safari park and construction of a cricket stadium near Sector D-12. However, these three tourism related projects were not started.

Though CDA did not share details of the new projects in the upcoming budget, sources said besides the three projects, several new schemes were part of the development plan.

“Yes, last year CDA had earmarked Rs90.2 billion for fiscal year 2025-26, which was revised later to Rs81 billion and board approved this revision as well,” said an official, adding: “If we compare this year’s Rs152 billion budget with last year’s of Rs90.2 billion, this is 68pc bigger than last year initial budget.”

It is relevant to note here that the CDA meets its expenditure mainly through auction of commercial plots as the civic agency has failed in developing regular revenues other than relying on its land bank.

Almost every year, the civic agency conducts two to three auctions.

Meanwhile, sources said the CDA board also approved the bid for package-II of cleanliness and garbage collection contract.

The CDA will outsource garbage collection, transportation of waste to the Losar landfill site in Rawalpindi, and cleanliness arrangements across Islamabad for four years.

A source said that the board also approved the allotment of 10 acres additional land for Daanish School Kuri, which will be acquired against the balance amount of the federal government already available with the CDA.

Published in Dawn, August 26th, 2026