The federal cabinet approved the National Housing Policy 2026 on Monday 11 August 2026, replacing a framework that had stood since 2001. The approval, taken at a meeting chaired by Prime Minister Shehbaz Sharif, includes an implementation action plan and marks the first comprehensive update to Pakistan's national housing strategy in nearly a quarter of a century.
Nine Strategic Themes
The policy is structured around nine strategic themes that span the housing and urban development sector:
- Land for Housing
- Housing Finance
- Construction Services
- Technology and Building Materials
- Development of Intermediate and Secondary Towns
- Slums, Katchi Abadis and Squatter Settlements
- Affordable Housing
- Low-Income, Low-Cost and Rural Housing
- Capacity Building and Knowledge Sharing
The Ministry of Housing and Works stated that together these themes provide a framework covering land availability, access to housing finance, construction and technology, balanced urban development, low-income and rural housing, institutional and legal reforms, and climate-resilient and environmentally sustainable housing. The policy's stated vision is to promote adequate, affordable and sustainable housing for all while improving access to housing opportunities, basic amenities and supporting infrastructure.
Zoning Compliance and Vertical Construction Ordered
The cabinet directed that all housing projects comply fully with zoning laws and that vertical construction be prioritised to make more efficient use of urban land. The prime minister's office confirmed in a statement that the directives are binding components of the policy's implementation.
Energy-Efficiency Codes Made Mandatory
The cabinet instructed that energy-efficiency codes be made an integral part of the National Housing Policy, requiring new construction to conform to energy-efficient and environmentally friendly standards. The directive means builders and developers will need to incorporate these codes into future projects, though the specific technical standards have not yet been published.
How the Policy Was Developed
The policy was prepared by a working group of national and international experts, with consultations involving federal ministries, provincial governments, and development partners. The Ministry of Housing and Works said efforts were made to bring all major stakeholders on board during the formulation process. Federal Minister for Housing and Works Mian Riaz Hussain Pirzada described the approval as a historic milestone, noting that Pakistan had been without an updated national housing policy for almost 25 years.
Apna Ghar Scheme Progress
During the same cabinet meeting, members were briefed on the prime minister's Apna Ghar housing finance scheme. Banks had approved loans worth Rs220 billion for applicants seeking to build or purchase homes, and more than Rs32 billion had already been disbursed to successful applicants. The scheme offers first-time homebuyers financing of up to Rs10 million at a fixed markup rate of 5 per cent for the first 10 years, with loan tenures extending to 20 years.
The draft National Housing Policy 2026 has been made available on the Ministry of Housing and Works website. What the evidence does not yet establish is the date on which the policy takes legal effect, the specific energy-efficiency code standards that will apply, how provincial governments will align their own housing regulations with the national framework, and what enforcement mechanisms will be put in place to ensure compliance with the zoning and vertical-construction directives.