The federal government has approved the repeal of the Naya Pakistan Housing and Development Authority (Naya Pakistan Housing and Development Authority) Act, 2020, and initiated steps to wind up the institution under its rightsizing policy.
The decision was endorsed by the Federal Cabinet on April 9, 2026, following a recommendation from the Cabinet Committee on Rightsizing.
NAPHDA was established in 2020 to promote affordable housing and execute low-cost housing projects across Pakistan. It was empowered to plan, develop, and manage housing schemes, with the Prime Minister serving as its patron.
Officials said the process gained momentum after the resignation of the Authority’s chairman. A proposal for a new appointment was moved in 2023, but the Prime Minister directed that NAPHDA first present its performance to the Economic Coordination Committee (ECC).
Following the review, the ECC asked the Authority to submit a detailed business and implementation plan in consultation with the Capital Development Authority (Capital Development Authority) and the Finance Division.
After further evaluation, the matter was referred to the rightsizing committee, which recommended winding up the Authority.
A draft NAPHDA (Repeal) Act, 2026—veted by the Law and Justice Division—has now been prepared for parliamentary approval.
Since its formation, NAPHDA launched housing initiatives in several cities including Islamabad, Lahore, Sargodha, Chiniot, and Nowshera, targeting over 122,000 housing units through public and private partnerships.
The Authority facilitated nearly 28,000 housing units with the Akhuwat Foundation and supported more than 31,000 units under the “Mera Pakistan Mera Ghar” financing scheme.
It also worked with multiple government bodies including the Workers Welfare Fund, CDA, FGEHA, and provincial housing authorities.
In addition, NAPHDA helped expand housing finance, with banks disbursing around Rs120 billion in loans under government-backed schemes by June 2022, before the program was later suspended.
Officials said future housing policy will now be pursued through the Prime Minister’s “Apna Ghar Programme,” which focuses on subsidized financing and homeownership support.
They added that while NAPHDA is being dissolved, the government’s broader housing goals remain unchanged and will continue under new policy frameworks.
