The Special Investment Facilitation Council (SIFC) has initiated a project to replace Islamabad’s aging government houses with high-rise buildings, aiming to generate substantial revenue for the national economy.
Currently, several sectors in Islamabad, such as F-6, G-6, and G-7, house single-story government residences, including spacious homes for senior officials. The government plans to demolish these single-story houses to make way for high-rise buildings, which could be built on the same land, offering better utilization of space.
This vertical construction approach is seen as necessary to preserve Islamabad’s land resources. A recent study revealed that government houses in the G-6/1 sector occupy 86 acres of land, but by constructing high-rise buildings, these houses could be accommodated on just nine acres, freeing up 77 acres worth over Rs 52 billion.
This idea has been under discussion for almost two decades, but no concrete action has been taken until now. Last week, the SIFC formally reached out to the Capital Development Authority (CDA) for their input on the matter, especially concerning the G-6/1 area. The SIFC’s decision was influenced by a report from the Pakistan Institute of Development Economics (PIDE) on the concept of “dead capital.”
The report argues that much of the land near urban centers in Pakistan remains underutilized and could be put to more productive use. The SIFC is looking to optimize this state-owned land for urban development, as seen in other countries like the UK and India, which have adopted vertical construction.
The PIDE study estimated that converting the single-story houses in G-6/1 into high-rise buildings could free up 77 acres of land, potentially generating Rs 55.2 billion in revenue and contributing to a 0.09% increase in GDP. The SIFC has requested the CDA’s feedback on the proposal, and once received, they plan to move forward with the project.
The SIFC emphasized the importance of efficient land management to boost economic activity and meet urban demands. They are hopeful that after receiving the CDA’s comments, the project will gain momentum, as vertical construction is a strategy already embraced by major cities worldwide.
