ISLAMABAD: The Executive Board of the Federal Government Employees Housing Authority has approved bids for six out of seven controversial commercial plots auctioned last year, despite concerns over the unusually narrow difference between the reserve prices and the final bid amounts.
Sources said the board had initially withheld approval after the auction, surprised by how closely the bids matched the reserve prices. The matter was subsequently referred to a three member inquiry committee to review the pricing mechanism and bidding process in detail.
According to officials, the board approved the bids during a meeting held on December 24 under the chairmanship of Federal Housing Minister Mian Riaz Hussain Pirzada. The minutes of the meeting were issued last week. Acting on the committee’s recommendations, the board approved six plots and ordered fresh bidding for the remaining 2,000 square yard plot.
An FGEHA officer confirmed that the bid for the largest plot was rejected, while the remaining six were cleared. The inquiry committee, headed by PHAF Managing Director Muhammad Shahid Hussain, concluded that the determination of reserve prices followed the approved GPI process as practiced by both FGEHA and the Capital Development Authority.
The board endorsed the committee’s findings and also directed FGEHA to regularise its auction process. It decided that commercial plot auctions should be held twice a year after development and approval of a formal auction calendar to boost overseas participation and improve market liquidity.
The commercial plot auction was held on June 18 and 19 last year in sectors G 13 and G 14. FGEHA had placed 24 plots of different categories in the auction, including Markaz plots, Class III shopping centre plots and mixed use building plots. Only seven plots were auctioned, all at prices either equal to or marginally higher than their reserve rates.
Officials revealed that bids exceeded reserve prices by very small margins, in some cases matching them exactly. This pattern raised questions but was defended by FGEHA officials, who maintained that achieving reserve prices in the current real estate market reflected a transparent and successful auction process.
