President Approves New CDA Law Introducing Flexible Land Compensation
President Asif Ali Zardari has signed the CDA Amendment Bill 2025, bringing significant changes to the compensation framework for property owners whose land is acquired by the government.
Under the newly approved law, compensation will no longer be limited to cash payments. Property owners may now receive land or other government-approved forms of compensation, providing greater flexibility in addressing disputes and meeting individual preferences.
The amendment also introduces interest for delayed payments, ensuring that affected individuals are entitled to an additional 8 percent per year if the government fails to compensate within the stipulated time. This measure is designed to protect citizens’ financial interests while expediting land acquisition processes.
Officials highlight that the law aims to streamline property acquisition for development projects, while maintaining fairness for citizens whose land is being utilized for public purposes. By offering alternative compensation options, the government seeks to reduce conflicts and facilitate smoother project implementation.
The Capital Development Authority (CDA) will now have clear legal backing to implement these provisions, potentially reshaping the way urban and infrastructure development projects are managed in Islamabad. Analysts suggest that this amendment may also influence land acquisition practices in other regions by setting a precedent for flexible, interest-bearing compensation mechanisms.
The CDA Amendment Bill 2025 represents a step forward in balancing development needs with property owners’ rights, ensuring timely and equitable compensation while fostering confidence in government-led infrastructure initiatives.
