CDA Compensation Law Changed as President Approves Amendment Bill

President Asif Ali Zardari has approved the CDA Amendment Bill 2025, bringing major reforms to how compensation is given when property is acquired. The new law moves beyond cash-only payments, allows land-for-land compensation, ensures an additional 8 per cent annual amount on delayed payments, and strengthens legal protection for affected landowners.

The amendment was introduced to address long standing concerns over delayed payments, inadequate compensation, and weak rehabilitation measures under the old system. Rapid urban development in Islamabad and surrounding areas had increased disputes between landowners and authorities, creating the need for a fairer and more flexible legal framework.

Under the new law, compensation will no longer be limited to cash. The government can offer alternative methods, including allotment of land, based on approved policies. If compensation is delayed, the affected person will receive an additional 8 per cent per year, ensuring financial protection.

The law provides special safeguards for vulnerable groups, including people with disabilities, minors, and individuals under legal restrictions. It also clearly states that steps must be taken to help affected people restore their standard of living after acquisition.

Deputy commissioners have been empowered to issue separate compensation awards for land and buildings, improving transparency. The act also grants CDA the authority to transfer property and offers legal cover for rehabilitation and resettlement processes. Importantly, all cases filed before October 2025 will now be decided under this amended law.

The president approved the bill on the advice of Prime Minister Shehbaz Sharif under Article 254 of the Constitution. The Senate passed the bill on November 7, 2025, while the National Assembly approved it on December 8, 2025, without amendments. National Assembly Speaker Sardar Ayaz Sadiq confirmed that the bill has officially become law.

Legal experts believe the amendment will reduce disputes, speed up development projects, and ensure fair treatment of landowners. By focusing on rehabilitation, alternative compensation, and timely payments, the law marks a significant shift toward a more humane and rights-based acquisition system.