XYON
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It was shelved as far as i know, when kayani came , he immediately ordered the project to be ceased. Lack of funds, and there was no real need for it. Also there was a security concern that the Naval HQ, Air HQ an GHQ all in the same place. If God forbid anything happens, all three could be taken out. So it is on hold permanently at the moment.
I pass through there everyday, a few families living, but not much.
The above description is not entirely accurate. The project was in its full swing in the first tenure of Kayani as COAS, but after a few months came along the severity of financial crunch, reluctance of the PPP Government to have the Army too close to the set of power. So the money in the kitty was then spent in upgrading the current Army GHQ in Rawalpindi from a 'Horse Stable Looking' into a modern day 'University-Looking Campus' with essentially corporate atmosphere.
GHQ current site in Islamabad has been in principal laid out with road work network completed for the support of the construction process to start in the future. Meanwhile, DEPO (Defense Export Promotion Organization) that organizes IDEAS exhibitions has been moved out of the Army Museum building next to GHQ and has been completely shifted to the new GHQ site along with the houses for the top tier DEPO DG and the second tier Brigadiers etc.
Secondly, there are absolutely NO security concerns of having the three Defense HQ's in such close proximity next to Margallah Hills as even the Joint Staff HQ and Ministry of Defense will also be placed in the same area sometime in the future.