Islamabad is poised for a major transformation as the Federal Government Employees Housing Authority (FGEHA) has approved landmark development projects, including a seven-star hotel and an international hospital in Sector G-13, through public-private partnerships (PPP) and lease-operate models—marking a huge policy shift which is meant for attracting long-term investment.
The decision was taken during the 40th Executive Board meeting of the FGEHA took place on May 9. Federal Minister for Housing and Works Mian Riaz Hussain Pirzada chaired the meeting. In a major reversal of policy, the board revoked an earlier resolution passed in December 2023, which had limited the disposal of such prime plots to auction-only procedures.
Officials have discussed various things with the board that the new disposal model—developed in consultation with the Public Private Partnership Authority (P3A)—is part of the Prime Minister’s vision to encourage strategic investment and enhance the city’s infrastructure. Multiple rounds of consultation with stakeholders led to the endorsement of these flexible and investor-friendly models.
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The seven-star hotel is expected to be a first for the capital, aiming to put Islamabad on the global luxury tourism and business map. The international hospital, meanwhile, will help fill a critical gap in the city’s high-end healthcare infrastructure, providing advanced medical facilities to both locals and foreigners.
In addition to the hotel and hospital plots, the FGEHA identified 11 more strategic sites for development via PPP. These include an IT tower and an international office hub in G-13, a shopping mall in the upcoming Skyline Project, an international school in G-14/2, and residential-commercial ventures in Rawalpindi, Karachi, and Murree.
While most of the projects received the green light, the board decided to hold off on the Murree property due to an ongoing legal dispute regarding ownership claims that date back to the pre-partition era.
This bold step by the FGEHA signals a new era of urban modernization, economic opportunity, and public-private collaboration—one that could reshape Islamabad’s skyline and bring world-class services to the heart of Pakistan’s capital.