National Housing Policy 2026 Approved: Vertical Housing and Energy Codes Prioritised

The federal cabinet has approved the National Housing Policy 2026 along with an action plan for its implementation, directing that housing projects comply fully with zoning laws and that vertical construction be prioritised to make more efficient use of land, according to Dawn and the Associated Press of Pakistan, published 11 August 2026. The meeting was chaired by Prime Minister Muhammad Shehbaz Sharif in Islamabad.

What Was Decided

Alongside the zoning and vertical-housing directives, the cabinet instructed that energy-efficiency codes be made an integral part of the National Housing Policy, so that new construction conforms to energy-efficient and environmentally friendly requirements. The cabinet was told the policy had been prepared by a working group of national and international experts, with federal ministries, provincial governments, and development partners consulted during drafting. Its core objective is the provision of sustainable, safe, and quality housing for all citizens.

Federal Minister for Housing and Works Mian Riaz Hussain Pirzada termed the approval "a significant achievement and a historic milestone," and congratulated the Ministry's Policy & Planning Wing for its work preparing the document, noting that efforts had been made to bring all major stakeholders on board during formulation.

Nine Themes, First Update Since 2001

This is Pakistan's first new national housing policy in nearly 25 years — the previous one was approved in 2001. The policy sets out nine strategic themes: land for housing, housing finance, construction services, technology and building materials, development of intermediate and secondary towns, slums and katchi abadis, affordable and low-cost housing, rural housing, and institutional capacity building. Together these are meant to give the sector a coordinated national framework covering land availability, finance, construction, informal settlements, and climate-resilient building practices. The draft policy has been made available on the Ministry of Housing and Works website, www.mohw.gov.pk, for public reference.

The Financing Push Continues

Members were also briefed on progress under the prime minister's Apna Ghar scheme. Various banks have approved loans worth Rs220 billion for applicants seeking to build or purchase homes, and more than Rs32 billion has already been disbursed to successful applicants — a financing channel that runs parallel to, and is expected to support demand generated by, the new policy framework.

Approval, Not Yet Implementation

It's worth being precise about what this cabinet decision actually represents. The National Housing Policy 2026 and its action plan have been approved at the federal level, but the detailed regulations, incentives, enforcement mechanisms, and timelines for the zoning and vertical-construction directives have not yet been publicly specified. How RDA, CDA, and PHATA translate "zoning compliance" and "vertical construction prioritised" into enforceable building rules for Islamabad and Rawalpindi specifically is still an open question, and will determine how much this actually changes for developers and buyers on the ground.

What This Means for Islamabad–Rawalpindi Buyers and Developers

For the twin cities, the zoning-compliance and vertical-construction push lines up directly with the apartment and mixed-use pipeline already forming along the M-2/Ring Road corridor — including DHA Gandhara and Faisal Town Phase 2 — and could push more developers toward high-rise formats over low-density plot schemes. Stricter zoning enforcement and mandatory energy codes may raise entry costs for new launches, while giving buyers a clearer compliance benchmark to check projects against, alongside existing checks like RDA's Green Property Certificate and RDA-approved status. Buyers evaluating new-launch apartment or mixed-use projects in the corridor should treat this as a signal of direction, not yet a finalised rulebook — Milkiyat.com will track the implementation phase as detailed regulations are notified.

Sources

1. Dawn — "Cabinet okays housing policy, cybersecurity framework", 11 Aug 2026: https://www.dawn.com/news/2022051/cabinet-okays-housing-policy-cybersecurity-framework
2. Associated Press of Pakistan — "Federal Minister hails new National Housing Policy 2026 as historic milestone", 11 Aug 2026: https://www.app.com.pk/national/federal-minister-hails-new-national-housing-policy-2026-as-historic-milestone/