The Ministry of Housing & Works has formally notified an 85% increase in the rental ceiling for federal government employees w.e.f. 1st November, 2025 following approval by the Federal Cabinet. This will come into force w.e.f. 1st November, 2025. The Ministry, in consultation with the Finance Division, is revising the rental ceiling rates for hiring residential accommodation. The last revision was approved by the Federal Cabinet on September 28, 2021. This time, Ministry recommended for the 85% increase in the rental ceiling for the Federal Government Employees (BS-1 to BS-22) across the board.
The Ministry of Housing & Works is responsible for providing government-owned office and residential accommodation for federal officers and staff, as well as the acquisition, requisitioning, and hiring of accommodation as per Schedule II, Rule 3(3), Serial No. 14 of the Rules of Business, 1973. The hiring of residential accommodation is decentralized across six specified stations: Islamabad, Rawalpindi, Lahore, Karachi, Quetta, and Peshawar. Over time, private rental costs in these cities have escalated significantly due to inflation and the growing influx of population, making it increasingly difficult for government employees to secure reasonable accommodation at existing rates.
Federal Minister for Housing & Works, Mian Riaz Hussain Pirzada, congratulated all federal government employees on this landmark relief measure. In his special message, he reaffirmed his commitment to the welfare of employees and noted that the ministry had been working on this revision since last year, fully recognizing the considerable burden of surging rents. He emphasized that the government is determined to ease this pressure by substantially increasing the rental ceiling, thereby sharing a larger portion of the housing costs with employees.
The Minister further stated that this revision will help reduce the workload on the Estate Office, especially in Islamabad, where there are almost 17,400 government residences and approximately 43,000 registered applicants for official accommodation. The Ministry remains committed to maximizing facilitation for federal government employees and addressing their housing needs amid rising market challenges.
