LONDON: The March 3 Islamabad High Court (IHC) judgement on the under-construction ‘One Constitution Avenue’ hotel and residential towers project in the heart of Islamabad has shattered the confidence of overseas Pakistanis in investing in their homeland. And it has also set a dangerous precedent.
While the government has been encouraging Pakistanis living abroad to bring foreign exchange into the country and invest in new ventures, the prevailing environment of corruption, poor governance and lack of justice sends a very different message; one that discourages foreign investment and encourages greater capital flight out of Pakistan.
While the National Assembly Committee on Finance has expressed concern that people living in Pakistan have sent $8 billion out of Pakistan in the past five years to buy property and invest money abroad, overseas Pakistanis are major contributors to the economy, sending remittances of about $19 billion in 2016 alone.
The media has sensationalised the judgement of the IHC as a victory against corruption without airing the perspective of the most affected party. The few high-profile personalities who invested in the project have overshadowed the majority of purchasers who consist of hardworking families and professionals, including overseas Pakistanis, retirees, widows, and single mothers. Many of them invested their life savings in good faith, but as a result of this judgement, have become victims of ‘negligence and fraud’.
The 79 overseas Pakistanis and their families who invested their hard-earned money in the OCA project rejected the IHC judgement and appeal to the government to safeguard their investments and restore trust and faith in their homeland. The constitution of Pakistan needs to be respected and upheld. The buildings are almost complete and the question is: are they to stand at the end of the Constitution Avenue as a black mark and a symbol of our failure to protect the rights of our citizens?
Background: On March 3, the Islamabad High Court dismissed the petitions against the cancellation of the lease of the land on which the hotel and apartment towers were being constructed (BNP vs. CDA). According to the judgement issued by honourable Justice Athar Minallah, “The 240 purchasers in this case have been robbed of their hard-earned savings solely due to regulatory failure and negligence of the CDA and the government as well.”
According to overseas Pakistanis, the court has taken the buildings from their rightful purchasers and handed them to CDA whom it deemed negligent and corrupt and party to the “fraud”. This decision sets a dangerous precedent that a development authority can approve a project, sign an irrevocable lease deed and after many years when the project is ready and sold, declare it illegal and confiscate it.
At no time in the past five years did the CDA object to the sale of the apartments, or warn the public, particularly overseas Pakistanis, that their investment was in any way at risk. The “landmark” judgement declared that the investors took a risk, stating that, “the victims also did not make queries from the authority”. The irony is that the purchaser was expected to make “queries” from the same authority that was deemed to have acted in blatant disregard of regulation.
The perception that the purchasers didn’t conduct due diligence is also inaccurate, as many of them were provided assurances by the CDA that the project was genuine and had an approved master plan. There was also no objection to the advertisements placed by the Ministry of Defence, declaring its intention to invest in the project. Furthermore, it is beyond comprehension that such a high-visibility project under construction for the last five years, in full view of the Presidency, Prime Minister’s Secretariat, the judiciary and all the country’s top political and administrative decision-makers, could possibly be a scam.
By deciding 11 years after the approval of the initial bids and a legally binding lease agreement that the buildings are illegal and that the purchasers have no legal right, the judgement of the IHC has sent a clear signal to overseas Pakistanis and foreign investors to steer clear of investing in Pakistan.
Furthermore, the judgement calls for purchasers to seek compensation from the government and the CDA; causing more confusion and condemning the innocent purchasers to many years in the wilderness of bureaucratic tangles, as determination is made on who will pay, how much to pay and when the coffers might have sufficient resources to make such a payment.
The overseas Pakistanis urged the media to take into consideration the views of all affected parties in this case.
Statements from overseas Pakistani purchasers: “Residing abroad, we had unlimited opportunities to invest our hard-earned money in property or investment projects anywhere in the world. But with an optimistic expectation, we placed our trust in our home country and invested in One Constitution Avenue. It is lamentable that our investments in our homeland are not secure.”
Ehsan Mani, UK
“The project was being built in plain sight over the last 5 years! Why did the CDA not intervene then if it was deemed illegal and why didn’t it warn the public, in particular overseas Pakistanis, that their investment was in any way at risk? This was the responsibility of CDA and the government. A responsibility that they are just now waking up to…”
Sarwat Zeeshan Lodhi,
The Netherlands
“The overseas Pakistanis are being sent a strong message not to invest in Pakistan. Is this the way in which we want to create the next “Asian Tiger” as the Vision 2025 of Pakistan declares?”
Dr Ismara Khan, Denmark
“Many overseas Pakistanis have similar stories. Most all of us were advised not to invest here by family and friends but we did it out of love for our country.”
Ahsan Azim, Canada
“With this judgement, an ALREADY incompetent authority has been entrusted with ensuring citizen’s rights are protected. How does that instil any confidence in the purchasers?”
Raja Adil Bashir, UK
“As a foreigner, I deeply regret trusting Pakistan to have a fair and reliable judiciary system. I convinced my family and friends that I was doing a safe investment that would allow my husband to spend our golden years visiting his country of birth, a country that I love. My friends and family told me otherwise, unfortunately they were right.”
Patricia Rymer, USA
“We are encouraged to invest our hard-earned money back home while the government is unable to provide protection against irregularities caused by its own authorities. My home is being stolen from me.”
Muhammad Dabeer Rasul, Saudi Arabia
“I sweat blood overseas for 25 years to buy a home in Quaid-i-Azam’s Pakistan. All of my dreams got shattered, lost my lifetime savings. I may have to work for another 20 years before I even think of retirement. Everything got destroyed… Who should I blame? The Pakistan government or myself, when I failed to listen to my family who wanted to stay overseas.”
Rehman Dhillon, USA
“We are very disappointed [over] the IHC judgement. On the one hand the government appeals to us to bring remittances and invest in Pakistan with tax-exemptions, yet it doesn’t honour its fundamental responsibility to protect our investments.”
Zehra Aftab, Saudi Arabia
“Far from being a wealthy elite, my wife and I have worked all our lives to save enough to invest in this property. The perception that living abroad means wealth, power and elite status is far from the truth. Living abroad means hard-earned money with discipline and honesty.”
Jahangir Khan & Carmen P Estrada, USA
“It is extremely disheartening to see the media flaunting the purchasers of OCA as elites. We have laboured in foreign countries, faced adversities to support our families back home and dreamed of returning one day to our motherland for a peaceful life. We are ordinary law-abiding & tax-paying citizens who had saved through many hard years to secure our future. The perception of ‘the privileged’ being created by the media is completely baseless.”
Abid Rizavi, USA
“The media has a false perception that only elites have purchased apartments in OCA. It’s quite the opposite! The ‘elite’ don’t buy property in Pakistan. They invest in England or America. The facts speak for themselves. Look at the capital flight vs the remittances.”
Rabya Nizam, Belgium
“Before purchasing my flat I inquired with the CDA and they gave me full assurance that the project was legitimate. Why should I suffer for incompetency and negligence of others? Are we just seen as collateral damage? This is not acceptable.”
Yaser Mirza, Australia
“I invested in my home. I furnished my entire apartment and was prepared to move in within a few months. I am not interested in any sort of compensation, nor is there any formula that can compensate me; for my money, my time and the emotional toll this has taken on our family. We will fight for justice and I am confident justice will prevail eventually.”
Lubna Bhayat, UAE.
