Islamabad to get a super luxury Seven-Star Hotel, reveals FGEHA

The Federal Government Employees Housing Authority (FGEHA) has embraced a new approach to boost urban development by greenlighting a series of high-profile projects through public-private partnerships (PPP).

The updated strategy was approved during the 40th executive board meeting on May 9. Additionally, the meeting was chaired by Federal Minister for Housing, Mian Riaz Hussain Pirzada.

The strategy includes the disposal of plots for a “seven-star hotel” and an “international hospital” in Sector G-13, Islamabad. These plots are now open for development through both PPP and lease-and-operate models. This replaces the previous auction-only approach.

The board’s decision reverses a resolution passed in December 2023, which limited disposal options to public auction.

According to officials, this shift is aligned with a directive from the Prime Minister and follows consultations with the Public Private Partnership Authority (P3A). A series of meetings led to the formulation of the new development model, aimed at attracting long-term investments.

Expanding the PPP Portfolio

Beyond the hotel and hospital plots, FGEHA has earmarked 11 more locations for PPP-based development. These include:

• A state-of-the-art IT tower and an international office hub in Sector G-13
• A shopping mall within the Skyline Project in Islamabad
• An international school in G-14/2
• Multiple residential-cum-commercial ventures in Rawalpindi, Karachi, and Murree

These initiatives reflect a broader push to reshape urban infrastructure while leveraging private sector expertise and resources.

While the board approved most of the identified projects, it deferred action on the Murree site due to a pending legal dispute regarding ownership. The land’s status is contested through pre-partition claims, necessitating further legal clarification before proceeding.