IHC orders dissolution of CDA, transfer of powers to Metropolitan Corporation

ISLAMABAD: The Islamabad High Court (IHC) has ordered the federal government to dissolve the Capital Development Authority (CDA) and transfer all its powers and assets to the Metropolitan Corporation. In a landmark ruling, Justice Mohsin Akhtar Kayani declared that the CDA Ordinance – originally established for Islamabad’s development – has outlived its purpose under current governance frameworks. The court emphasised that new laws and modern governance structures have rendered the CDA obsolete, noting that “the authority’s original objectives have been fulfilled.”

The judgment mandates a complete transition of CDA’s administrative powers, assets, and development functions to the Metropolitan Corporation. It specifically prohibits the imposition of any taxes – including Right of Way or Direct Access charges – without proper approval from local government institutions. The court stressed the need for transparent and accountable administration in Islamabad, directing authorities to ensure all citizen rights are protected under the law during this transition period.

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This decision marks a significant shift in Islamabad’s governance structure, effectively ending the CDA’s six-decade dominance over the capital’s urban planning and development. The ruling comes after years of jurisdictional conflicts between the CDA and local government systems established under the 2015 Local Government Act. Legal experts suggest the judgment could set important precedents for administrative reforms in other urban centers across Pakistan. The federal government has been instructed to begin and complete the dissolution process promptly, though implementation challenges are expected given the CDA’s extensive institutional footprint in the capital’s development landscape.