The federal government has initiated the process to repeal the Naya Pakistan Housing and Development Authority (NAPHDA) Act, 2020, following the Federal Cabinet’s approval of a proposal to wind up the Authority as part of its rightsizing agenda.
NAPHDA was established in 2020 through an Act of Parliament during ex-Prime Minister Imran Khan’s government with the objective of promoting affordable housing for low-income groups across the country.
The Authority was mandated to plan, develop, construct, and manage housing projects, while the prime minister served as its patron under the law.
The move to dissolve the Authority follows a review process that began after the resignation of the NAPHDA chairman. A summary seeking the appointment of a new chairman was initiated in February 2023, but the prime minister directed the Authority to first brief the Economic Coordination Committee (ECC) on its performance and achievements against its organizational objectives.
After receiving the briefing, the ECC asked NAPHDA to prepare a comprehensive business plan in consultation with the Capital Development Authority (CDA) and the Finance Division.
Subsequently, as part of the government’s efforts to streamline federal institutions and reduce expenditures, the future of NAPHDA was referred to the Cabinet Committee on Rightsizing. After detailed deliberations, the committee recommended that the Authority be wound up.
The recommendation was later endorsed by the Federal Cabinet on April 9, 2026, paving the way for the repeal of the NAPHDA Act, 2020. A draft NAPHDA (Repeal) Act, 2026, vetted by the Law and Justice Division, has now been prepared for legislative consideration.
The decision marks the end of an institution that played a key role in advancing affordable housing initiatives over the past several years. Since its establishment, NAPHDA launched projects in Islamabad, Lahore, Sargodha, Chiniot, Nowshera, and other cities, with a cumulative target of approximately 122,507 housing units through partnerships with both public and private sector organizations.
Through its collaboration with the Akhuwat Foundation, the Authority facilitated the construction of nearly 28,000 housing units, while more than 31,000 units were supported through individual financing under the Mera Pakistan Mera Ghar scheme.
Additional housing projects were undertaken in partnership with the Workers Welfare Fund, the Capital Development Authority (CDA), the Federal Government Employees Housing Authority (FGEHA), and various provincial development authorities in Punjab and Khyber Pakhtunkhwa.
NAPHDA was also associated with a major expansion in housing finance. By June 2022, private commercial banks had disbursed approximately Rs. 120 billion in housing loans under government backed schemes, marking the first time such a large volume of private sector financing had been directed toward housing in Pakistan.
The program was later suspended during the caretaker government’s tenure.
The repeal process comes at a time when the federal government is pursuing a new housing strategy through the recently announced Prime Minister’s Apna Ghar Programme, which aims to facilitate affordable homeownership through subsidized financing and concessional loans.
While NAPHDA is being abolished as part of institutional reforms, the government’s commitment to expanding access to affordable housing remains unchanged and will continue through alternative policy and financing mechanisms.
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This Govt is a cancer