Naya Pakistan Housing Program: A step in the right direction

Naya Pakistan Housing Program is the flagship project of the Pakistan Tehrik-e-Insaf-led government that would provide housing facility to the homeless population, accelerate economic activity in the country and provide job opportunities to the youth. For that purpose, Government of Pakistan also established Naya Pakistan Housing & Development Authority (NAPHDA) on 15 January 2020 through an Act of Parliament for the purpose of planning, development, construction and management of real estate development schemes and projects including housing. The Authority being the Developing Arm of the Government is pursuing multiple objectives in the realm of housing and infrastructure development on both profit and non-profit basis throughout the Country. The purpose of this blog is to discuss nitty gritty of the program: it will be comprised of below mentioned components.  

Components of the Blog

  • Land
  • Housing Finance
  • Regulations
  • Geographic Coverage  
  • Target Group
  • Formation of Steering Committee on Housing and Construction Finance
  • Monitoring Mechanism
  • Institutional Framework 


In most cases, procurement, town planning and infrastructure development of land will be the responsibility of NAPHDA. It will acquire land commercially and also seek allotment of Government lands, where possible. In some cases, land offered as donation or equity in a Joint Venture may also be used. For Example, to provide housing units under this program LDA City Naya Pakistan Housing Apartments has been inaugurated. Similarly, FDA City Naya Pakistan Housing Apartments is another case in point in this context. 

Housing Finance

Proper financial mechanism has been articulated to deliver five million housing units with allied amenities to all citizens. Need and demand-based construction is the objective of NPHP.  To facilitate citizens, especially the low to middle income group, this is the key qualification criteria

To become eligible for this program, one should be citizen of Pakistan and one should be first time home owner. The condition is one family can avail the opportunity for one household. One individual can have subsidized house finance facility under this scheme only once. Moreover, one should submit 10% of the total cost of house to bank in the context of down payment. Below mentioned are the categories of houses defined by NPHA

To get loans under this program, the following is the list of Banks entertaining users:

  1. Meezan Bank 
  2. Bank Alfalah Islamic
  3. HBL Bank
  4. Bank Al Habib
  5. Faysal Bank, 
  6. JS Bank, 
  7. Al Baraka Bank, 
  8. Bank of Punjab (BOP)
  9. Askari Bank, 
  10. Allied Bank Limited, 
  11. United Bank Limited (UBL), 
  12. Standard Chartered Bank (SCB), 
  13. Muslim Commercial Bank (MCB), 
  14. MCB Islamic Bank Limited
  15. National Bank of Pakistan (NBP).


To execute this program according to set rules, Naya Pakistan Housing and Development Authority Act, 2020 and Land use rules for apartment schemes have been formulated. 

Geographical Coverage

NAPHDA seeks to develop quality housing at affordable price for low to medium income groups in urban, peri-urban and rural areas. Clusters of housing complexes will be created in a progressive manner, all over the Country. These housing colonies will have a mix of housing units for various income groups and will foster social cohesion. The planned breakdown of estimated volume, based on preliminary survey/planning, is as under:

Area Units Volume
Urban Centers 2 million Housing units 40%
Peri-Urban Areas 1 million Housing units 20%
Rural Areas 2 million Housing units 40%
Total 5 million Housing units 100%


Below mentioned are the locations where parcels of land have been allocated so far:

Target Group

In order to remove housing shortage, provide houses to all, arrange shelter for shelter less people, make housing affordability a means not just an aim, and give rural people a life of contentment and ease, Government of Pakistan has decided to launch Naya Pakistan Housing Programme (NPHP) for providing 5 million housing units to low-income and middle-income groups.

Formation of Steering Committee on Housing and Construction Finance

State Bank of Pakistan has formulated a steering committee on Housing and Construction Finance. The Committee constituted members including chairman Lt-Gen Anwar Ali Haider (retd), SBP Deputy Governor Jameel Ahmad and presidents of Habib Bank Limited, National Bank, Meezan Bank, Faysal Bank, Standard Chartered Bank and Bank Alfalah. SC engages with Provincial Governments for reduction of stamp duties and mortgage registration cost. SC also facilitates in development of a simplified model to assess the income of a person employed in informal sector. Under the roadmap of this committee, SBP has advised banks to allocate 5% of their private sector advances in housing and construction finance over a period of 18 months i.e., by December 2021. Also, State Bank has completed one-on-one meetings with banks for finalization of their action plans for achievement of mandatory targets for housing and construction finance.

Monitoring Mechanism

NAPHDA Monitoring System (NMS) is a solution to which easily available, accurate and up-to-date information on project status can improve work efficiency and quality. This platform will create opportunities by connecting the informal and formal economies of Real Estate Development and help generate value for all stakeholders. The best solution for any industry to optimize with technology is to create a seamless experience for key stakeholders; uniting vendors, buyers, construction workers, supervisors, firms, architects, designers, developers, land-owners as well as powering key important functions.

Institutional Framework

The government of Pakistan has decided to establish a housing authority (NAPHDA) for the administration and enforcement of Naya Pakistan housing program, Naya Pakistan housing and development authority (NAPHDA) was founded on 15 January 2020 for the persistence of planning, constructing, developing and managing real estate programs and projects both for profit and non-profit across the country. 

The Authority is housed in the Cabinet Division / Prime Minister’s Secretariat and operates under the patronage of Pakistan’s Prime Minister. The Policy Board now has eleven members, including representation from both the public and private sectors. The Authority’s headquarters are at Islamabad’s Prime Minister’s Secretariat. The Regional Offices, which will be located in all provinces and regions, are now gathering funds. The Authority will conduct studies, surveys, and technical research, as well as contact with banks and financial organizations in order to get mortgage loans and finance for low-income housing.

The nuts and bolts of the discussion is that Naya Pakistan Housing Program deserves a huge round of applause as an initiative, but government is far away from reaching the said targets. To execute the committed targets, some other initiatives are much needed along with Naya Pakistan Housing Program. For instance, low-cost Materials should be introduced, there is dire need of Computerized Land Information system, self-building by people (Khuda Ki Basti is good case example), cost subsidization in terms of taxes and cross subsidies must be introduced, policies and plans devised for affordable house should be time bound and be implemented in letter and spirit, and prominent organizations having expertise in low-cost housing techniques should play their key role. Hopefully, dream to own a home will come true for every Pakistani.


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