ISLAMABAD: The federal cabinet has approved the National Housing Policy-2025 (NHP-2025) along with its Action Plan for implementation, directing the Ministry of Housing and Works to promote vertical high-rise housing projects, resettle Katchi Abadi dwellers in high-rise apartments and introduce land-zoning, energy-efficiency and environmentally sustainable requirements in new housing schemes.

The decision was taken after detailed consideration of a summary submitted by the Ministry of Housing and Works, which stated that Pakistan’s housing sector was facing significant challenges including rapid urbanisation, housing shortages, informal settlements, inadequate land management and limited access to affordable housing finance.

The ministry told the Cabinet that the National Housing Policy-2001 had become outdated due to changing socio-economic, demographic and environmental conditions.

A detailed review of the 2001 policy identified critical gaps in compact urban development, climate-resilient housing, affordable rental housing and institutional coordination, necessitating a comprehensive revised policy framework.

Against this backdrop, the government formulated NHP-2025 through an extensive consultative process involving federal ministries and divisions, provincial governments, academia, civil society and international development partners.

The draft policy is based on the concept of “Housing for All” and is anchored in the principles of equity, sustainability and resilience. It is aligned with Article 38(d) of the Constitution and Sustainable Development Goal 11, while incorporating international best practices to address contemporary housing challenges.

The policy covers a range of areas including availability of land, development of intermediate and secondary cities, housing finance, construction technologies, upgrading of informal settlements, affordable and rental housing, climate-resilient housing and strengthening of institutional and legal frameworks.

The Ministry of Housing and Works had earlier submitted the draft policy to the Prime Minister for approval. While considering the proposal, the Prime Minister directed that a comprehensive Action Plan for implementation should first be prepared in consultation with relevant federal ministries/divisions and provincial governments.

In compliance with the direction, the ministry, in coordination with stakeholders, formulated a detailed Action Plan and circulated it to concerned stakeholders through the Inter-Provincial Coordination Division.

The Action Plan was subsequently finalised after incorporating stakeholders’ views and comments.

According to the ministry, the Action Plan contains time-bound and measurable interventions, clearly defines the roles and responsibilities of federal and provincial governments and relevant agencies, and provides mechanisms for monitoring and evaluation.

The Cabinet subsequently approved the National Housing Policy-2025 along with its implementation Action Plan, subject to incorporation of the directions issued during the Cabinet meeting.

During the discussion, the Prime Minister directed the Ministry of Housing and Works to incorporate the development of vertical high-rise housing projects in the policy.

The Prime Minister observed that scarcity of land, particularly in large cities, made it necessary to actively promote vertical high-rise housing complexes.

He further directed that such projects should also be utilised for the resettlement of Katchi Abadi dwellers in high-rise apartments.

The Cabinet also agreed with a proposal that the lease period granted to developers of high-rise building projects by the Capital Development Authority (CDA) should be increased from 33 years to 66 years.

The longer lease period is intended to facilitate investment in high-rise housing projects and make such developments more commercially viable.

The Cabinet also directed incorporation of necessary land-zoning regulations into the National Housing Policy.

The objective is to ensure clearer demarcation of land reserved for agricultural, industrial, commercial and residential purposes.

Cabinet members also suggested that the policy should incorporate energy-efficient building codes so that new housing developments could conserve energy and reduce consumption.

The policy is also required to incorporate environmentally sustainable practices, including rainwater harvesting, into building codes.

Another direction was to make provision of necessary information technology and internet connectivity infrastructure mandatory in new housing projects developed under the policy.

During the Cabinet discussion, the Ministry of Housing and Works also apprised members about the government’s “Apna Ghar Programme: Ghar Ho to Apna”, a new mark-up subsidy and risk-sharing scheme designed to provide affordable housing finance.

The programme provides financing for the purchase of houses, flats and plots, as well as construction of homes on already-owned land.

The ministry informed the Cabinet that the programme had received an overwhelmingly positive response, with loans amounting to Rs220 billion approved so far, out of which Rs32 billion had already been disbursed to applicants.

The government has positioned the housing finance programme as part of its broader objective of ensuring affordable housing for citizens.

Cabinet members welcomed the formulation of the comprehensive housing policy, which aims to provide affordable housing to citizens while following the principles of equity, sustainability and resilience.

The policy’s implementation framework is intended to address not only the shortage of housing units but also problems associated with unplanned urban expansion, informal settlements, land management, affordability and climate-related risks.

The Cabinet’s final decision stipulates that the National Housing Policy-2025 shall provide for the development of vertical high-rise housing complexes and actively promote and encourage investment in such projects.

It further requires that high-rise housing be used as an option for resettling Katchi Abadi dwellers, while the CDA will extend the lease period for developers of high-rise buildings from 33 to 66 years.

The policy will also incorporate land-zoning regulations, energy-efficient codes approved by the Cabinet, environmentally sustainable practices in building plans and necessary IT and internet connectivity infrastructure in housing projects.

The Cabinet considered the summary dated June 2, 2026, titled “Approval of the Draft National Housing Policy-2025 (NHP-2025) along with Action Plan for its Implementation,” submitted by the Ministry of Housing and Works, and approved the proposal subject to implementation of these stipulations.—MUSHTAQ GHUMMAN