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Naya Pakistan Housing For All Initiative

One of the key features for Naya Pakistan is to improve the housing situation for Pakistanis.There is a shortfall of over 10 million houses, and every year we are adding to this backlog. This government intends to promote access to housing to the people of Pakistan and jumpstart the housing sector.

The salient features of this housing is to make housing affordable to people are the following

  • Increase buying power by providing loans of longer tenure fifteen to twenty years.
  • Reduce cost by standardizing design and specifications.
  • Reduce cost by significantly cutting down the approval time.
  • Develop new communities with access to infrastructure.
  • Reduce the upfront cost of builders by providing them land in installments and minimum time for approvals and infrastructure before start of construction.
  • Provide project loans to builders so that they can complete housing project in the shortest possible time thus improving their ROI and at the same time reduce the investment period thus reducing the overall cost for the end consumer the main objective of this scheme

It is envisaged that by the above measures the cost would be 15 to 20% lower than the current market price and by providing long term loans we would enhance the number of people who can afford housing by 100% in the first three years. The current situation is about half a million people can afford to buy homes and apartments every year.

This initiative will also help us on delivering the promise for 10 million jobs as these house alone which is an additional 3 million houses over the next five years with each house creating 20 jobs per year means an additional 60 million job-years which means 12 million jobs a year, in unskilled, semi-skilled and skilled category plus another 1 to 1,5 million jobs in related industry and service industry.

This initiative would mean doubling the capacity at least of all construction related industry .This initiative would also mean another one to three hundred thousand jobs in the service industry that is banking, security, maintenance, insurance etc. This initiative alone would also jumpstart the economy as it will be prove to be the biggest growth engine for the economy. The contribution to the country’s economy from the housing sector alone, allied industry and services would be 15 trillion Rupees. (If each unit is valued at 3 million rupees on an average). This would mean an addition of more than 8 to 9 trillion rupees over 5 years above the existing contribution.

Today we are formally launching this scheme with defined targets and milestones, which will need the following to be done in the time frame called out including a pilot registration scheme in 3 districts.

1.Foreclosure law implementation and enactment of new laws.  Action: Ministry of law and Parliamentary affairs. Time period 3 months from today.

2.Creation of Provincial and Federal Naya Pakistan Housing Authority. Action: Ministry of Housing and works and Ministry of law and Parliamentary affairs. Time period: three months from today.

3.Arranging funds for Housing needs. Action: Ministry of finance.  Time Period: three months from today. (Commercial banks to be also brought on board and at least 5% of their loan portfolio will be fixed for lending to builders and housing mortgage financing).

4.At the same strengthening of the remortgage finance market to be established. Action: State Bank of Pakistan. Time period: Six months

5.Selecting locations from existing Federal and Private property owners; Responsibility task force Time Period : Ongoing first 100,000 units next 45 days.

6.Developing Designs for the units; Responsibility task force next 60 days.

7.Pricing for each unit as per location through builders 120 days.

8.Launching of the scheme for booking of units 180 days from today.

9.Completion of first project and handing over of keys or possession of plots within 2yrs. of this date. Responsibility Task Force, NAYA Pakistan Housing Authority and Private Sector Builders

10.Every year targets given to all the stake holders are as per the table below which are indicative in nature and will be modified on studying the demand data which is collected every year through actual demand surveys and income levels.

Description Year 1 Year 2 Year 3 Year 4 Year 5
 One unit 200000 200000 200000 250000 250000
Ground+ 3 100000 150000 200000 200000 200000
Additions to existing 100000 225000 200000 200000 200000
Highrise 50000 75000 100000 100000 100000
Midrise 100000 150000 150000 150000 200000
Self construction 100000 150000 150000 150000 200000
Total 650000 900000 1000000 1,050,000 1,250,000
Subtotal of those which will be built under APNA Housing Authority 150000 400000 500000 500000 500000


  1. At the same time guidelines will be developed and the existing approval process is to be streamlined to give approvals for the processing of applications. Steps which are taken for monitoring buildings are being done as per plans.
  2. The last and most important to develop infrastructure for the plots and communities which are being built both under the APNA Housing authority as well as that for the those developing and building properties outside this scheme. Responsibility

How will the scheme work:

All land titles will be verified by the authority, land will be acquired by the authority, the authority with the help of builders and developers will decide what product is needed for the market on the basis of the data which the authority would have collected and market study.

Secondly the authority will also ensure that the necessary infrastructure needed for the project is in place before the scheme is launched which means access, water, sewerage, electricity etc.

Builders will compete to provide the best possible price to the end consumer through a reverse auction/ e-auction.

The houses will be given to the end consumers on first come first basis.

The projects will be completed by the builders by their or own funds or through obtaining loans obtained by the builders for the project. These loans will be repaid by the builders with the accrued interest till the date he has handed over the project to the end consumer.

This financing scheme will ensure that the projects are completed in shortest possible time. The end consumer is saved from the financial cost.

The price of the land would be not paid by the builder the price of the land would be recovered from the end consumers. The title of the land will be transferred to the bank which will transfer the land to the condominium corporation once the loan is repaid.

The end consumers will have to pay only 20% of the unit price during the construction period but before they would have to obtain financing approval for 80% of the amount for loan from a commercial bank. This loan will be repaid by the homeowner over a period of twenty years. The objective is to bring the installment as close as possible to the rent they are currently paying.

Through the above measures we hope this will help the builder offer apartments which would be at least 15 to 20% lower than the market prices. Thus making the apartments and the twenty percent down payment as high rated collateral for the loan the bank is giving to the end consumer.

Furthermore for processing the loan application the banks would consider the clubbed income of direct relatives such as Husband, wife, and children with an income.

To increase the financial resources of the banks the following sources of funds will be considered, pension funds , zakat funds, provident funds, funds at the disposal of insurance companies , EOBI , Social Security institutions etc.

The banks would be allowed to park funds parked in the housing industry with the remortgage companies on the creation of secondary finance market.

If there are any further questions I would be willing to address them.

Reference  Insaf.pk

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