Progress and Plans for Naya Pakistan Housing Programme

Engineering Post Report               

Naya Pakistan Housing Programme is a targeted  response by the incumbent federal government  to address the deficit  of affordable  housing for the citizens across the country.

Under the Naya Pakistan Housing Programme , a well-crafted  housing  policy has since been  adopted  to  not only  provide affordable  housing  facility  to the homeless and low-income  population, but also to accelerate  domestic economic activity, attract  foreign  direct investment, improve  financial sector and provide  job opportunities to the youth.

It has been estimated  that affordable  housing deficit is around five million units in five years  in urban and  rural areas of Pakistan. The housing  policy  would be phasing out  the target  of constructing one million housing units  per year with  (i) 0.4 million units/year in the  rural areas;(ii) 0.2 million units /year  in Peri-Urban  areas under Social Housing  Schemes, and (iii) 0.4 million units/year in the Urban Areas.

During financial year 2020-21, Naya Pakistan Housing and Development Authority (NAPHDA) had made landmark achievements including  1320 low-cost housing  units at Jalozai Housing Scheme, Nowshera; low cost housing project in Sargodha district of Punjab under the Punjab Government Peri Urban Scheme; LDA City Naya Pakistan Apartments  in Lahore and 4000 apartment  project at  Farash Town, Islamabad .

The key features  of mortgage and construction finance  include: regulatory incentives  to banks to promote low cost and affordable housing finance through State Bank of Pakistan cash reserve requirements, lower tax rate and lower provisioning  requirements; mark up subsidy  for affordable  housing mortgage   are  offered  upto 20 years  at 3 per cent, 5 per cent and 7 per cent  depending upon  the size and value of the house; target for housing finance at least 5 per cent of private sector credit by December 2021 amounting to Rs 378 billion, and; Risk insurance  by PMRC  (40 per cent first loss)—Lower risk –Weights for Low Cost Housing Finance.

Furthermore, the Federal Government Employees  Housing  Authority  has also launched two new projects in Islamabad/Rawalpindi for provision of apartments  to the Federal Government Employees under PM’s Naya Pakistan Housing Programme.