Pakistan Shifts Toward Vertical, Greener Housing Under New Policy

Pakistan’s cabinet approves a 2026 housing policy prioritizing vertical, energy efficient construction, alongside Rs220bn in Apna Ghar loans, cybersecurity standards and refinery upgrades nationwide.

Pakistan’s federal cabinet has approved the National Housing Policy 2026, placing vertical construction, zoning compliance and energy efficiency at the center of the country’s housing strategy. The decision, taken at a meeting chaired by Prime Minister Shehbaz Sharif, comes as Pakistan faces rapid urbanisation, rising construction costs and a persistent shortage of affordable homes.

The policy includes an action plan and was prepared by a working group of national and international experts after consultations with ministries, provincial governments and development partners. Its stated aim is to expand access to safe, quality and sustainable housing while making more efficient use of limited urban land.

The cabinet directed authorities to ensure housing projects comply with zoning regulations and to prioritise vertical development where appropriate. It also ordered energy efficiency codes to become an integral part of the policy, requiring future construction to meet environmentally friendly and energy saving standards.

The approval marks Pakistan’s first national housing policy update since 2001, according to the Ministry of Housing and Works. Federal Minister Mian Riaz Hussain Pirzada described the move as a “historic milestone” providing strategic direction for Pakistan’s housing deficit and urban challenges.

The cabinet also reviewed progress under the prime minister’s Apna Ghar scheme, which supports first time applicants seeking to purchase or build homes. Banks have approved Rs220 billion in housing loans under the programme, while more than Rs32 billion has already been disbursed to successful applicants.

The scheme covers house or apartment purchases, plot acquisition followed by construction and building on an already owned plot. The government has set financing of up to Rs10 million, with a fixed five per cent markup for the first 10 years and loan tenures of up to 20 years.

Alongside housing measures, the cabinet approved the Pakistan Information Security Framework 2026. Prepared under the CERT Rules 2023, it establishes unified baseline information security standards and centralised oversight, covering data protection, access management, incident response, audits and critical infrastructure.

“The framework aims to establish a comprehensive and unified system of basic uniform information security standards,” the Prime Minister’s Office said. The cabinet directed authorities to implement it within the prescribed timeframe.

The meeting also endorsed amendments to the Pakistan Oil Refining Policy 2023 to facilitate refinery upgrades and strengthen the country’s ability to meet energy requirements. It further approved withdrawing a notice terminating Pakistan’s 1981 bilateral investment treaty with Sweden and ratified recent decisions by economic and legislative committees.