ISLAMABAD: The Federal Government Employees Housing Authority (FGEHA) is in need of a new business model as the current demand for housing units outstrips the supply, necessitating fundamental transformation in the FGEHA structure, policies, and operational practices.

The FGHEA is a subsidiary of the Ministry of Housing and Works and its job is to provide plots and houses to government employees. According to a document seen by Dawn, during a recent meeting of the FGEHA executive board, it was revealed that the authority has 190,862 registered members and only 35,000 units have been delivered so far.

“At the current delivery rate of 1,100 units per year, clearing the backlog would take nearly 150 years presenting/depicting an unsustainable scenario,” read the minutes of the meeting issued on February 18. The meeting was held earlier this month with Housing Minister Riaz Hussain Pirzada in the chair.

Sources in the FGEHA stated that with an annual registration rate of 10,500 over the past 16 years, the demand outstripped the supply necessitating fundamental transformation in the authority’s structure, policies and operational practices.

Delivery rate stands at 1,100 units per year, requires ‘nearly 150 years’ to meet demand

In the meeting, it was informed that despite the autonomy granted in the FGEHA Act, the organisation remained reliant on the “outdated Land Acquisition Act 1894, which failed to ensure land possession effectively”. Likewise, the absence of flexible joint ventures and public-private partnership policies, complex allotment criteria, and decades-long lack of digitisation also added to inefficiencies in the authority.

To ensure survival and efficiency, the FGEHA must reform its archaic laws and policies, revealed the minutes. In order to address these challenges, a committee was formed to assess the existing practices and propose a sustainable business model, with performance-enhancing measures for long-term viability.

The meeting was informed that a comprehensive sustainable strategy was being implemented for land procurement.

Similarly, a revision in JV policies to attract private investments as well as a voluntary subscription model to ensure a steady cash flow without burdening members was also on the anvil.

The executive board directed the officials to submit draft policies on land assets disposal regulations, JV regulations and monthly subscription policy, vetted by the committee along with the complete business plan in the next board meeting for approval.

An official of the FGEHA confirmed the contents of the minutes, which highlighted that over 150 years would be required to provide plots/apartments to all registered members if the authority did not introduce reforms.

He said that the housing minister has been monitoring the performance of the FGEHA and various initiatives were being taken to improve the performance of the authority.

One such initiative included the preparation of PC-Is for development in sector F-14. In the second phase, the focus will be on F-12 and G-12. “Issues are chronic, but we are moving in the right direction and soon people will see significant improvements,” he said and added that in the next executive board meeting, the business plan would be placed for approval.

It is relevant to note that several projects of FGEHA are either halted or being constructed at a very slow pace, while members had made their investments years back but still could not get possession of their plots or apartments. The ongoing schemes include Green Enclave Bhara Kahu, F-14, F-15, G-12, and G-14 sectors, the Park Road housing scheme, the Lifestyle Afro Apartments project, the Kashmir Apartments project, and the Skyline Apartments project.

Published in Dawn, February 25th, 2025