LAHORE: The World Bank has proposed extending the completion timeline of Punjab’s Affordable Housing Programme by 21 months, potentially moving the closing date to March 2029 as the project continues to face implementation delays.
The programme has a financing envelope of around $200 million and aims to support the development of 77,000 housing units, including 37,000 homes classified as affordable housing.
According to the latest assessment, physical construction had not started as of May 2026, more than four years after the programme was approved.
Implementation Progress Rated Moderately Unsatisfactory
The World Bank has rated the programme’s implementation progress as Moderately Unsatisfactory, compared with an earlier Moderately Satisfactory assessment.
At the same time, progress toward the project’s development objective remains rated Moderately Satisfactory. The World Bank has also identified institutional capacity as a substantial risk, reflecting challenges in implementing the programme within the originally planned timeframe.
The proposed 21-month extension is intended to provide additional time for the programme to move forward and meet its objectives.
Limited Financing Disbursement
The programme’s revised financing envelope stands at approximately $203.82 million. Of this amount, around $41.12 million had been disbursed, leaving approximately $162.70 million yet to be released.
The relatively low disbursement level comes alongside delays in physical implementation, with construction of the planned housing units not yet underway at the time of the latest assessment.
Proposed Changes to Housing Delivery
As part of the proposed restructuring, the programme could introduce beneficiary-led construction and demand-side housing subsidies.
Under this approach, greater responsibility for construction could be placed with beneficiaries or other housing providers, supported by targeted financial assistance. The proposed changes are intended to address implementation challenges and improve the delivery mechanism for affordable housing.
The restructuring and extension remain subject to the relevant approval process.
Punjab Housing Policy Also Faces Delay
The programme’s implementation is also taking place against a broader policy backdrop. Punjab’s comprehensive housing policy has reportedly been put on hold pending notification and implementation of the federal government’s national housing policy.
The proposed extension to March 2029 would give Punjab additional time to implement the World Bank-supported programme, while the revised delivery model and policy framework are expected to shape the pace and form of future affordable housing development.
