The federal government has begun the process of repealing the Naya Pakistan Housing and Development Authority (NAPHDA) Act, 2020, after the Federal Cabinet approved a proposal to wind up the Authority under its broader rightsizing agenda.
NAPHDA was created in 2020 through an Act of Parliament during the tenure of former Prime Minister Imran Khan to promote affordable housing for low-income groups across Pakistan. The Authority was responsible for planning, developing, constructing, and managing housing projects, with the prime minister designated as its patron under the law.
The move to dissolve NAPHDA follows a review initiated after the resignation of its chairman. A proposal to appoint a new head was first moved in February 2023, but the prime minister directed that the Authority first present its performance and progress report to the Economic Coordination Committee (ECC). Following this briefing, the ECC instructed NAPHDA to prepare a detailed business plan in coordination with the Capital Development Authority (CDA) and the Finance Division.
Later, as part of ongoing efforts to streamline federal institutions and reduce public expenditure, the matter was referred to the Cabinet Committee on Rightsizing. After detailed deliberations, the committee recommended winding up the Authority, a recommendation subsequently approved by the Federal Cabinet on April 9, 2026. A draft NAPHDA (Repeal) Act, 2026—reviewed by the Law and Justice Division—has now been prepared for parliamentary consideration.
The decision effectively brings an end to an institution that had been central to several affordable housing initiatives in recent years. NAPHDA launched projects in multiple cities, including Islamabad, Lahore, Sargodha, Chiniot, and Nowshera, with a total target of around 122,507 housing units through partnerships with public and private sector organizations.
In collaboration with the Akhuwat Foundation, nearly 28,000 housing units were developed, while over 31,000 units were supported through individual financing under the Mera Pakistan Mera Ghar scheme.
Additional projects were carried out with the Workers Welfare Fund, CDA, the Federal Government Employees Housing Authority (FGEHA), and provincial development authorities in Punjab and Khyber Pakhtunkhwa.
The Authority also contributed to a major expansion in housing finance, with private commercial banks disbursing around Rs. 120 billion in housing loans by June 2022 under government-backed schemes—marking a significant increase in private sector participation in Pakistan’s housing sector. However, the program was later suspended during the caretaker government’s tenure.
The repeal comes alongside the government’s shift toward a new housing framework under the recently launched Prime Minister’s Apna Ghar Programme, which focuses on affordable homeownership through subsidized financing and concessional loans.
While NAPHDA is being dissolved as part of institutional restructuring, officials maintain that efforts to expand affordable housing will continue through new policy instruments and financing models.
