Economic Development and Strategic Urban Infrastructure
---Rooma Mehmood---
Islamabad's Preparation for the Shanghai Cooperation Organization (SCO) Summit
The federal capital is undergoing rapid and high-priority infrastructure development ahead of the upcoming SCO Summit, which Pakistan is set to host.
This summit is a critical strategic event, demanding world-class infrastructure to host numerous heads of state.
Prime Minister Shehbaz Sharif performed the groundbreaking for the Shaheen Chowk Underpass on October 24, emphasizing its importance for ensuring smooth traffic flow and enhancing the city’s aesthetic appeal.
Review of Major Capital Development Authority (CDA) Projects
The Capital Development Authority (CDA) is managing several key projects, including the Shaheen Chowk Underpass, the commencement of work on 11th Avenue, and plans for the Kashmir Chowk Underpass.
Furthermore, the government plans to construct a new Convention Centre, specifically four times larger than the existing facility, to accommodate international events like the SCO summit.
New hospitality projects, including a State Guest House, a Capital House, and a joint hotel developed by the Ministry of Overseas Pakistanis and the CDA, are scheduled to begin construction as early as January 2026.
This intense focus on rapid urban development is intended to project an image of stability and regional relevance, particularly to key SCO partners (China, Russia).
However, this concentration of capital expenditure creates inflationary pressure within the construction sector and risks diverting essential government capacity and funds away from the immediate and pressing needs of rural post-flood recovery.

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