Islamabad, The Capital Development Authority (CDA) is seeking approval from the federal cabinet to construct two new five-star hotels in Sector F-5 of Islamabad. This initiative follows a meeting chaired by Prime Minister Shehbaz Sharif, where CDA submitted a proposal outlining its plan for these hotels, a news source reported on April 25.

According to Zameen.Com, CDA has prepared three frameworks for consideration: freehold rights, public-private partnerships, and leasehold rights. The federal cabinet will evaluate these options to select the most appropriate model for the hotel construction. The demand for new luxury hotels in Islamabad has become pressing, with the current supply of 4,000 rooms per night significantly lower than the required 8,000 rooms.

The proposed locations for the hotels, valued at Rs. 20 billion, are near the Pakistan National Arts Council and the Marriott Hotel. This proximity to the Diplomatic Enclave makes the plots ideal for luxury hotel development, catering to diplomats and other esteemed visitors. Despite previous unsuccessful attempts to auction these plots, both the CDA and the federal government are now aligned, opening the door to potential foreign investment.

Reports indicate that Saudi Arabia may be interested in investing, with plans to inject up to $5 billion into Pakistan's economy. If approved, this project could significantly enhance Islamabad's hospitality infrastructure and attract more international visitors to the capital.

The federal cabinet's decision will be a key step toward moving this proposal from planning to implementation, offering a much-needed boost to the city's tourism and hospitality sectors.