President Asif Ali Zardari has signed the CDA Amendment Bill 2025, overhauling land compensation rules with new options, protections and an 8% penalty on delayed payments.
Land Compensation No Longer Limited to Cash
President Asif Ali Zardari has given his assent to the Capital Development Authority (CDA) Amendment Bill 2025, approving major changes to how people are compensated when their property is acquired. The new law moves away from a cash-only approach and allows compensation to be paid in different forms, including land or other arrangements prescribed in the rules.
Officials say this flexibility is meant to better match the needs of affected landowners. In many cases, people prefer a developed plot or alternate land over a one-time cash payment that may quickly lose value. The amendment gives CDA and landowners more room to structure compensation packages that are practical and sustainable over the long term.
8% Annual Additional Compensation on Delayed Payments
A key feature of the CDA Amendment Act 2025 is an 8 percent annual additional compensation on delayed payments. If the CDA fails to pay compensation within the prescribed time, the affected person will be entitled to this extra amount until full payment is made.
For years, landowners whose properties were acquired for public projects have complained of long delays in receiving their dues. The new 8 percent provision is intended to discourage such delays and ensure that people are fairly compensated for the time value of money they lose while waiting for payment. It also sends a clear signal that timely settlement of compensation obligations is now a legal requirement, not an administrative option.
New Protections for Vulnerable Groups and Landowners
The amendment also introduces specific provisions to protect vulnerable groups, including persons with disabilities, minors and individuals under legal constraints. These clauses are aimed at ensuring that such persons are not sidelined or exploited during the land acquisition and compensation process.
More broadly, the Act includes safeguards for landowners’ rights and calls for measures to restore the standard of living of affected persons. This marks a shift from a narrow focus on one-time payments to a wider view of rehabilitation and resettlement. The law gives legal cover to efforts aimed at helping displaced families rebuild their lives, whether through alternative housing, livelihood support or other forms of assistance.
Separate Awards for Land and Buildings by Deputy Commissioners
Under the new framework, deputy commissioners will be authorised to make separate awards for land and for buildings standing on that land. This is meant to provide clearer valuations and avoid disputes where structures and land were previously treated as a single lump-sum item.
By distinguishing between the value of land and built-up property, the law aims to ensure that owners of houses, shops and other structures receive a more transparent assessment of what they are owed. It also makes it easier to document compensation decisions and reduces room for arbitrary or unclear awards.
Rehabilitation, Resettlement and CDA Property Transfers
The CDA Amendment Act 2025 also deals with rehabilitation and resettlement, giving legal backing to programmes that support affected persons once their land is acquired. It allows for the transfer of property from the CDA as part of resettlement plans and provides a framework for restoring living standards as far as practicable.
These provisions recognise that land acquisition is not only a legal and financial process but also a social one. By formally acknowledging the need to restore living standards, the law aims to reduce grievances and build more trust in public development schemes that require people to give up their land.
Parliamentary Approval and Application to Pending Cases
The president signed the bill on the advice of Prime Minister Shehbaz Sharif under Article 254 of the Constitution. The Senate passed the CDA Amendment Bill on 7 November 2025, while the National Assembly approved it on 8 December 2025 without any changes. National Assembly Speaker Sardar Ayaz Sadiq certified the approval, and the bill has now become an Act of Parliament.
Importantly, the legislation states that pending cases instituted before October 2025 will be decided in accordance with the amended provisions. This means that many ongoing disputes over compensation within CDA’s jurisdiction could benefit from the new rules on flexible compensation, delayed payment penalties and improved protections for landowners and vulnerable groups.
