ISLAMABAD: The Capital Development Authority (CDA) has asked the Competition Commission of Pakistan (CCP) to take action against 34 private housing schemes that misleadingly use the name “Islamabad” and 27 which claim to be located in specific sectors of the federal capital despite being situated outside the Islamabad Capital Territory (ICT).
In a formal communication to the CCP, the CDA said a large number of developers are using terms such as “Islamabad,” “Capital,” and sector designations like G-13, F-17, E-18 and others to create the false impression that their projects are part of the planned city. In reality, many of these schemes are located in Rawalpindi, Taxila, Fateh Jang, Attock and adjoining areas of Punjab.
The CDA noted that some developers go beyond merely using the word “Islamabad” and advertise their projects as being located in or adjacent to established CDA sectors. Such claims, the authority said, are designed to exploit the credibility and premium value associated with Islamabad’s sector-based urban planning system.
By presenting projects as extensions of sectors such as F-17, E-18 or G-15, developers create the impression that the schemes are approved by the CDA and enjoy the same legal status and infrastructure standards as sectors within the federal capital. The CDA clarified that many such projects lie entirely outside ICT limits and are regulated by other authorities, if at all.
The authority provided a list of 34 housing schemes that use Islamabad branding despite being outside CDA jurisdiction. It is also said that Islamabad Capital Territory (ICT) terminates at 17th Series in the South West of Islamabad and there is no sector of Islamabad in the South West of Sectors A-17, B-17, C-17, D-17, E-17, F-17, G-17, H-17 and I-17.
The CDA also identified the 27 housing projects which claim to be in sectors of Islamabad but in actual are beyond its limits and are not part of Islamabad.
According to the CDA, the misleading use of Islamabad’s name and sector references is intended to inflate property prices and induce buyers to invest under the mistaken belief that the projects are located within the capital city.
The authority warned that such advertising practices may constitute deceptive marketing and unfair trade practices under the Pakistani law, exposing unsuspecting investors to legal and financial risks.
The CDA has urged the CCP to initiate proceedings against developers, sponsors and marketing firms involved in the practice. It also recommended that the Pakistan Electronic Media Regulatory Authority (PEMRA), Pakistan Telecommunication Authority (PTA) and Press Information Department (PID) block or refuse advertisements that falsely portray projects as part of Islamabad.
The CDA advised prospective buyers to verify whether a housing project falls within ICT limits and whether it has the requisite approvals from the relevant regulatory authority before making any investment. “Any investment made in housing schemes outside Islamabad Capital Territory on the basis of misleading advertisements shall be at the sole risk of the purchaser,” the authority said.
The move is expected to have significant implications for developers that have relied on Islamabad’s brand name and sector nomenclature to market projects located beyond the capital’s legal boundaries.
