Islamabad: In a major relief measure for public servants across the country, the Ministry of Housing and Works has announced a significant increase in the rental ceiling for government employee accommodation, effective November 1, 2025. This crucial decision, approved by the Federal Cabinet and coordinated with the Finance Division, extends substantial financial support for housing expenses to all federal employees ranging from Grade 1 to Grade 22.
The move is specifically designed to counteract the rapid rise in market rents that have made housing increasingly unaffordable for government staff.
According to Federal Minister for Housing and Works Mian Riaz Hussain Pirzada, this initiative underscores the government’s commitment to enhancing the welfare and standard of living of its workforce. While the implementation is initially focused on six major cities to provide immediate relief where accommodation costs have surged highest, the ministry estimates the decision will place an additional fiscal burden of approximately Rs 12 billion on the national exchequer. Despite the cost, the government’s priority remains clear: to ensure affordable and adequate housing support for its employees.
