Islamabad : Following approval by President Asif Ali Zardari, the government has issued the gazette notification of the Capital Development Authority (Amendment) Ordinance, 2025. The ordinance aims to protect the rights of affectees and landowners in the federal capital by ensuring fair compensation in the form of both monetary payments and land.
Under the amended provisions of the CDA Ordinance, 1960, compensation to landowners and affectees may be provided through cash payments, land sharing, or any other method as determined by the Authority. The award of compensation will be announced by the Deputy Commissioner of the CDA.
According to the new ordinance, the Deputy Commissioner may issue two separate awards: one for land and another for any structures or built-up properties on that land.
For pending cases seeking rehabilitation and resettlement benefits-linked to awards of land or property-that remain unresolved as of October 30, 2025, the applicable Rehabilitation Policy in effect at that time will govern and guide the processing of those cases.
Compensation will be determined in accordance with Sections 30 and 31 of the amended ordinance. As per the revised Section 30, compensation must ensure that the land allotted in exchange is of equivalent value, utility, and accessibility to the acquired land. Where applicable, rehabilitation and resettlement benefits must also be provided to help restore the affectees’ livelihoods and living standards. The compensation package should align with principles of fairness and equity, ensuring that no one is left at a disadvantage due to land acquisition.
Additionally, under the new Section 32A, in cases of delayed compensation, the Deputy Commissioner must pay additional compensation at the rate of eight percent per annum, calculated from the date possession was taken until full payment is made or deposited.
A new amendment also addresses the compensation process for individuals who are legally incapacitated. As per the updated Section 33B, if a person entitled to compensation is a minor, of unsound mind, or otherwise legally unable to receive and manage the funds, the Deputy Commissioner may authorize payment to a person applying on their behalf.
The ordinance reflects an effort to enhance transparency and fairness in land acquisition processes, while also addressing long-standing grievances of affected landowners in Islamabad.