Plan to allow commercial activities in Islamabad’s Zone III raises eyebrows

Kashif Abbasi Published September 4, 2026  Updated about 13 hours ago

ISLAMABAD: The Capital Development Authority (CDA) is planning a major commercial area in Zone III, which is otherwise a protected area where construction activities are prohibited, even for small houses on private land.

The CDA, through a joint venture with the Defence Housing Authority (DHA), is developing Margalla Enclave in the Kuri area.

For this housing project, a 3.8km link road from Park Road to the housing scheme is being developed, with earthwork almost complete. The road passes through Zone III, a protected zone where, under CDA regulations, no construction activity can take place.

However, the CDA is planning to develop a mega commercial area on both sides of the road. To achieve this, the federal government has already granted the road the status of an arterial/major road of Islamabad. The federal government, through an official letter, directed the CDA to apply the regulations already notified for GT Road, Islamabad Expressway, Srinagar Highway, IJP Road, Lehtrar Road, Murree Road, Fateh Jang Road, Park Road, Kuri Road, Simly Dam Road, Kahuta Road and Japan Road to the 3.8km road to make it an international-standard urban avenue.

Residents barred from building even small houses in Zone III, while CDA considers regulated commercial development along new road

Following the federal government’s approval, the Ministry of Interior a couple of months ago had a notification published in the Official Gazette to give the road the status of an arterial/major road of Islamabad.

Interestingly, construction activities are completely banned in Zone III and people are not allowed to construct even a three-marla house on their own land. On the request of the CDA, people cannot get new electricity connections, while whenever the CDA comes to know about the construction of new houses, its staff rushes to the site to demolish the structure, besides confiscating construction tools. Such cases have taken place in the Shah Allah Ditta area in the recent past.

On the other hand, in contrast to its own policy, the CDA is now planning to have a new commercial zone along the road in Zone III.

“This is quite interesting and double standards. How can construction be allowed for a mega commercial area in Zone III while small houses are banned and people are not allowed to have their own houses on their land?” a source said.

The source said the CDA was planning to get the commercial area developed through a joint venture with DHA on the same pattern as Margalla Enclave.

“Since the federal government is competent to allow any change in zoning regulations, the government has given this road the status of a major road. Therefore, the debate over construction in Zone III has automatically died down, but yes, the issue of the public at large is still undecided,” the source said.

The CDA spokesperson, when contacted for the authority’s official version, did not reply to specific questions but shared a notification, stating that it was self-explanatory.

The notification stated that the federal government had approved the alignment of the proposed Zone IV access road, having a right of way of 220 feet and a total length of 3.8km, and declared it an Arterial/Major Road of Islamabad.

“The federal government has also authorised CDA to notify and apply relevant parameters along the Zone-IV Access Road as prescribed in inter alia, the ICT Zoning Regulations, 1992 and relevant ICT building control regulations 2020 as amended in 2023 and applicable to already notified Astride Arterial Major Roads ..Islamabad Expressway, IJP Road, Lehtrar Road, Murree Road, GT Road…..in order to ensure its development as a planned, international standards urban avenue and to facilitate regulated development and lawful resource generation,” read the notification.

It further stated, “The federal government has allowed CDA to adjust land parcels from within its ownership, including land reverted to CDA upon expiry of lease to address, inter alia, any deficiency arising in respect of land previously earmarked to STZA [Special Technology Zone Authority].”

The notification was dated May 7, 2026, and was shared by the spokesperson.

The spokesperson was also asked whether the new road falls in Zone III. He was similarly asked whether this amounted to a contradictory policy. He did not reply to these questions but shared the notification.

Sources said the CDA board on Wednesday also discussed the notification at its meeting and members deliberated upon the “relevant parameters” for notifying regulations for the road in accordance with the federal government’s decision. It is relevant to note that for the CDA-DHA Margalla Enclave, besides the 3.8km road, an underpass is also being built at Park Road. However, the underpass project has been facing delays in completion, causing problems for motorists.

The project was started some nine months ago, but contrary to other underpass projects in Islamabad, which were completed in a few months, this project has been facing delays and citizens have been raising their voice against the delay.

Margalla Enclave is a joint venture of the CDA and DHA, being developed on CDA land in the Kuri area, and both authorities will have a 55-45 per cent share in the scheme. DHA is carrying out the development work.

DATE . 4/ Sep/2026

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