# Pakistan to Convert One Constitution Avenue into Five-Star Hotel Government investigation reveals massive fraud and irregularities in Islamabad skyscraper project development. - **Source:** [Dawn](https://www.dawn.com) - **Published:** 2026-11-04 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/d0a17e83-007b-4071-96ad-9747e6da39a1 ## Government Seizes Skyscraper The Pakistani federal government officially reclaimed the One Constitution Avenue skyscraper in Islamabad following a damning investigation. Officials announced the building will be converted into a five-star hotel, reverting to its original intended purpose. This move follows the cancellation of the project's lease by the Capital Development Authority due to payment defaults. ## Fraudulent Project Development A joint investigation team revealed the project was built on systemic irregularities and manipulated bidding processes. The report, supported by agencies including the National Accountability Bureau and Inter-Services Intelligence, concluded that rules were ignored to benefit developers. Officials stated the building was illegally converted from a hotel into residential apartments and commercial units. ## Key Figures Implicated Planning Minister Ahsan Iqbal identified Abdul Hafeez Sheikh as the mastermind behind the fraudulent scheme. Several former Capital Development Authority officials, including former chairman Kamran Lashari, were named for colluding in the fraud. The government has recommended blacklisting Sheikh and his company from all future public projects while initiating formal legal proceedings. ## Protecting Defrauded Investors The government pledged to compensate individuals who purchased apartments in the building illegally. Affected residents will receive refunds of their principal investments, adjusted against Kibor interest rates to prevent financial losses. Interior Minister Mohsin Naqvi confirmed that the previous residents' committee has been abolished, with a new authority member overseeing the transition. ## Institutional Reforms Planned To prevent future corruption, the government plans to overhaul the Capital Development Authority and establish an independent master plan commission. New protocols include the digitization of all records and a mandatory two-year rotation policy for officers in planning and enforcement departments. These measures aim to close loopholes that allowed long-term office holders to facilitate fraud. ## Hotel Conversion Timeline Interior Minister Mohsin Naqvi stated the government aims to operationalize the five-star hotel within months. The administration plans to partner with a major international hotel chain to address the severe shortage of luxury accommodation in Islamabad. The project will undergo a transparent, new auction process to ensure compliance with modern safety and fire protocols. ## Legal and Audit Actions The National Accountability Bureau has been ordered to take immediate action against all facilitators involved in the project's manipulation. The government emphasized that the building's name, One Constitution Avenue, will be changed to avoid confusion with the finance ministry address. Future projects will require rigorous security clearance and third-party audits to ensure total transparency. ## Broader Impact of Scandal This case highlights deep-seated issues within urban development and administrative oversight in the capital. By reclaiming the site, the government seeks to restore public trust and recover losses to the national exchequer. The outcome serves as a precedent for how the state handles large-scale real estate fraud and the protection of private capital. ## Sources covering this story - https://www.dawn.com/news/2042095/govt-says-islamabads-one-constitution-avenue-to-be-turned-into-a-five-star-hotel — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._