ISLAMABAD – Naya Pakistan Housing and Development Authority (NAPHDA), once affordable housing revolution promising thousands of homes for low-income families during PTI government, is facing an axe as federal government is preparing to shut down Naya Pakistan Development Authority.
The legislation is initiated to abolish the flagship housing institution established during former prime minister Imran Khan’s tenure, as part of its ongoing rightsizing and cost-cutting reforms.
The move follows Federal Cabinet’s approval of proposal to wind up the authority and repeal NAPHDA Act, 2020. A draft repeal bill has already been prepared after receiving legal clearance from the Law and Justice Division.
NAPHDA was created to promote affordable housing and launched projects in Islamabad, Lahore, Sargodha, Chiniot and Nowshera, with plans for more than 1Lac housing units through public-private partnerships.
During its operations, the authority facilitated nearly 28,000 homes through collaboration with the Akhuwat Foundation and supported over 31,000 housing units under the Mera Pakistan Mera Ghar financing scheme. It also played a role in expanding housing finance, with commercial banks disbursing around Rs120 billion in home loans by June 2022.
The decision to close NAPHDA came after a performance review conducted by the government and recommendations from the Cabinet Committee on Rightsizing.
Naya Pakistan Housing Authority
NAPHDA was created to tackle Pakistan’s housing crisis by spearheading a nationwide push for affordable housing. The authority was at the heart of the government’s promise to facilitate five million homes for low- and middle-income families, a target aimed at narrowing a housing shortage estimated at around 10 million units.
It was working as autonomous body under federal government, and was tasked with planning, developing and managing housing projects across the country. The authority played role in promoting housing finance through the Mera Pakistan Mera Ghar scheme, helping channel billions of rupees in subsidized home loans.
By mid-2022, commercial banks had disbursed around Rs120 billion in housing finance under government-backed programs, marking a significant expansion of mortgage lending in Pakistan.
The project struggled to match its lofty ambitions as thousands of housing units were developed or facilitated through various schemes and partnerships, critics argued that progress remained far below the original promise of five million homes. Rising construction costs, funding shortages, land acquisition hurdles, regulatory bottlenecks and coordination issues repeatedly slowed implementation.
Despite shutting down NAPHDA, PML-N led alliance government insists affordable housing remains a priority. Officials said the future housing initiatives will continue under alternative frameworks, including Prime Minister’s Apna Ghar Programme, which focuses on subsidized financing and concessional loans for prospective homeowners.
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