The Federal Government Employees Housing Authority (FGEHA) has approved a proposal to seek a five-year income tax exemption from the federal government as part of its efforts to strengthen affordable housing initiatives for serving and retired government employees.
The decision was taken during a recent meeting of the FGEHA Executive Board, where members discussed measures to improve the authority’s financial sustainability and accelerate the development of housing schemes.
According to officials, FGEHA operates as a statutory public-sector welfare organization on a no-profit, no-loss basis. The authority relies on income generated through installments, transfer fees, and service charges to finance development and operational expenses rather than commercial profits. Officials believe that tax relief would enable more funds to be directed toward housing development instead of tax liabilities.
The Executive Board also approved a new framework for land acquisition in future projects. Under the revised policy, land-sharing ratios will be determined individually for each project based on financial viability, development requirements, and overall feasibility, replacing the previous uniform model.
In addition, the board reviewed proposed regulations for the disposal of commercial properties. However, the matter has been deferred for further examination and will be reconsidered at a future board meeting before a final decision is made.
Another key decision was the approval to rename Road No. 804 in Islamabad’s G-14 sector as Chan Shah Kazmi Road in recognition of the late Syed Chan Shah Kazmi’s historical and cultural association with the area. The proposal will now be forwarded through the Ministry of Housing and Works for final approval by the federal cabinet.
The proposed tax exemption comes as FGEHA continues work on multiple housing schemes, including ongoing development in the F-14 and F-15 sectors. Officials believe the financial relief would help accelerate project completion while keeping housing more affordable for beneficiaries.
If approved by the federal government, the five-year tax exemption is expected to strengthen FGEHA’s ability to deliver affordable housing projects and improve the pace of development for government employees across Pakistan.
