Islamabad's One Constitution Avenue to be turned into five-star hotel

The building was originally approved as a five-star hotel around two decades ago and was later developed into residential apartments and commercial spaces

Web Desk

|

4 Nov 2026

The federal government has decided to revive Islamabad’s One Constitution Avenue project as a five-star hotel after a joint investigation team (JIT) found widespread irregularities in its development, Planning Minister Ahsan Iqbal said on Wednesday.

The JIT report, presented to the federal cabinet, found that the bidding process for the project had been manipulated, rules bypassed and the sale of apartments carried out illegally, according to the minister.

The building, originally approved as a five-star hotel around two decades ago, was later developed into residential apartments and commercial spaces. The Capital Development Authority (CDA) cancelled the lease after the company behind the project defaulted on payments.

The Islamabad High Court upheld the decision in April, leading to the eviction of residents in May. Prime Minister Shehbaz Sharif subsequently formed the JIT to investigate the matter.

Speaking at a press conference with Information Minister Attaullah Tarar and State Minister for Interior Tallal Chaudhry, Iqbal said the investigation involved officials from the National Accountability Bureau, Federal Investigation Agency, Federal Board of Revenue, Securities and Exchange Commission of Pakistan, Intelligence Bureau and Inter-Services Intelligence.

According to the report, the lease was granted to a company that had no legitimate claim to it, while the conditions attached to the bank guarantee were removed to benefit the developers. The JIT also found the CDA complicit in the irregularities, Iqbal said.

The minister identified Abdul Hafeez Sheikh as the alleged mastermind of the scheme, saying he had worked in connivance with CDA officials. Those named in the report included former CDA chairman Kamran Lashari, Dr Faisal Awan, Azhar Ali Chaudhry, retired Brigadier Nasrullah and Rai Nawaz Kharal.

Iqbal said the project had caused losses to the national exchequer, while those involved had benefited financially and investors had been defrauded.