CDA to return Rs350m to federal government

Islamabad: Initiated by incumbent administration of the Capital Development Authority(CDA), financial discipline in CDA has started to yield fruits as the CDA chairman for the first time has approved first installment of Rs350 million to be repaid to federal government from the budget of CDA for financial year 2020-2021, the CDA spokesman said on Monday Cash Development Loan amounting to Rs5 billion was granted to CDA in June 2016 with fix interest rate of seven percent.

The loan is recoverable in 20 years along with interest after the expiry of grace period of five years for recovery of principal amount. During the grace period of five years only interest is to be paid and principal amount is required to be paid along with interest after expiry of grace period in 2020-21.

CDA has not repaid amount on account of Cash Development Loan since its grant. After putting the Authority on path of financial stability, now Chairman CDA has decided to repay the loan and accordingly an amount of 350 million rupees has been approved for this purpose. Along with repayment of loan on account of Cash Development Loan, financial discipline has enabled CDA to work on multiple development projects in the city.

Sector I-11, I-12, I-15, E-12, and Park Enclave are the residential projects where development work is in progress simultaneously owing to availability of funds due to financial discipline.

Similarly infrastructure development projects including G-7/G-8 interchange and Barma Bridge are at the verge of completion courtesy financial discipline which ensured uninterrupted supply of funds.