The federal government has started the process of abolishing the Naya Pakistan Housing and Development Authority (NAPHDA) after approving a plan to shut down the organization as part of its institutional restructuring and cost-cutting efforts.
NAPHDA was established in 2020 during the government of former Prime Minister Imran Khan through an Act of Parliament. The authority was created to promote affordable housing and help low-income families access homeownership opportunities across Pakistan.
The organization was responsible for planning, developing, and managing housing projects in different parts of the country. Under the law, the prime minister served as the patron of the authority.
The decision to dissolve NAPHDA came after a review of its performance. The process began following the resignation of the authority’s chairman. In 2023, the government considered appointing a new chairman, but instead directed NAPHDA to present details of its achievements and performance before the Economic Coordination Committee (ECC).
After reviewing the briefing, the ECC asked the authority to prepare a comprehensive business plan in coordination with the Capital Development Authority (CDA) and the Finance Division. Later, the matter was referred to the Cabinet Committee on Rightsizing, which evaluates government institutions and recommends reforms to improve efficiency and reduce public spending.
Following detailed discussions, the committee recommended closing NAPHDA. The proposal was approved by the Federal Cabinet on April 9, 2026. As a result, a draft law has been prepared to formally repeal the NAPHDA Act, 2020.
During its existence, NAPHDA launched affordable housing projects in several cities, including Islamabad, Lahore, Sargodha, Chiniot, and Nowshera. The authority worked with public and private sector partners to develop more than 122,000 planned housing units.
It also collaborated with organizations such as the Akhuwat Foundation, Workers Welfare Fund, CDA, and provincial development authorities. Through various housing finance schemes, thousands of families received support for home construction and ownership.
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