The government of Pakistan allowed the United States Embassy to purchase an additional land in posh area of Diplomatic Enclave for extension of the embassy's premises. With expansion of the US operations in Pakistan, additional human capital is also required.
The additional land would be utilised for new offices and accommodations of staff, an official of the Capital Development Authority (CDA) told PAC. The CDA has sold 8 acres of land in the Diplomatic Enclave adjacent to the US Embassy against price of $500 per square yard.
CDA Chairman Imtiaz Inayat Elahi on Wednesday informed Public Accounts Committee (PAC) that the affairs of Diplomatic Enclave are run by the Foreign Affairs Ministry and not authority. "If the diplomatic community faces any problem, it raises the issue with the Foreign Office," he added.
He further disclosed that CDA did not charge Embassy of Republic of China for allotment of extra land. In China case, 'this piece of land is a gift to the Government of China by the Government of Pakistan, he said. The CDA chairman told the two-member committee that the shifting of embassies and high commissions from residential areas of the Capital city to Diplomatic Enclave is in progress.
The chairman dismissed one of the proposals floated in the meeting that prices of plots should be raised. He said, "We had to reduce the price of land to $500 after the Embassy of Portugal threatened to sever their ties with Pakistan." Another official of CDA said the land in the Enclave provided on reciprocity basis is decided by the foreign affairs ministry.
The committee also pointed out gross violation of CDA leasing rules in the allotment of commercial land to private parties. The CDA had leased out 100 agri farms spread on 2 acres located in Chak Shahzad on very nominal amount of Rs 8000 per month for 33 years lease.
Parliamentarian Sardar Ayaz Sadiq pointed out that the decision of extension in lease period from 20 years to 33 was a violation of the CDA rules. He said the element of transparency has been missing in leasing out these agri farms and would draw criticism. He said these agri farms were re-leased to the same occupants whose contracts expired in 2010 and are not extendable. In addition to this, no interests have been called through advertisements.
The CDA Chairman admitted this and said the concept of these agri farms was to supply fresh vegetables to residents of Capital City on cheaper rates. These farms turned into residential areas when the city expanded to these farms. Auditor General Office in its observations asked the committee to minimise the discretionary powers in the allotment of commercial lands to private sector.
He admitted it was a fault of the authority. Additional Secretary Cabinet Division proposed if the powers of the Chief Commissioner and policing delegated to the CDA Chairman following the model of Lahore Development Authority, they might be able to vacate these farms and remove encroachments.
The CDA Chairman disclosed that he moved a summary to the prime minister suggesting him to formulate new award policy which let them compensate Rs 5 billion to old dwellers who resist acquiring land for housing schemes. "The Authority has an earning of around Rs 20 billion through setting up of a single housing society," he added.