Islamabad Capital Territory

Islamabad | ReNews Pakistan
The Securities and Exchange Commission of Pakistan (SECP) has proposed increasing the housing finance limit for non bank microfinance companies to Rs 5 million as part of regulatory changes aimed at expanding access to smaller scale housing and construction finance.

The proposed framework also includes adjustments to certain borrower thresholds, with the objective of widening access to housing related financing through non bank microfinance institutions regulated by the SECP.

The proposed changes are specifically intended for SECP regulated non bank microfinance entities and would not alter existing mortgage or housing finance products offered by conventional commercial banks.

If finalised and implemented, the higher limit could provide additional financing options for borrowers seeking relatively smaller loans for home construction, expansion and other housing needs.

The proposal comes amid higher construction costs, which have reduced the practical value of earlier financing limits and increased the amount households may require to undertake even small scale residential construction projects.

For the real estate and construction sectors, greater access to smaller housing loans could help support construction activity, strengthen demand from genuine end users and facilitate more formal transactions in the lower value segment of the property market.

The actual impact of the measure, however, will depend on the final regulatory notification, the lending appetite and capacity of microfinance institutions, financing terms and the specific housing finance products developed following implementation.

The proposed increase represents a regulatory move towards improving formal financing options for affordable and incremental housing in Pakistan, particularly for borrowers whose financing requirements fall below the typical scale of conventional mortgage products.

Islamabad | ReNews Pakistan
The National Accountability Bureau has secured the formal transfer of more than 6,500 kanals of amenity and public utility land from two Islamabad housing schemes to the Capital Development Authority, bringing land reserved for public use under approved layouts under the formal control of the civic authority.

According to available details, the largest portion of the transferred land comes from Gulberg Residencia, where 5,484.76 kanals of amenity and public-utility land have been vested with the CDA. A further 999 kanals from Margalla View D 17 have also been formally transferred to the authority. Together, the two transfers amount to approximately 6,500 kanals.

The process was concluded in May 2026 and relates specifically to land earmarked in approved housing layouts for public facilities such as parks, schools, healthcare facilities, graveyards, roads and other common-use infrastructure.

Amenity land in a housing scheme is fundamentally different from privately allotted residential or commercial plots. Such land is reserved for collective use and is intended to support the planned civic and social infrastructure of the project.

The regulatory significance of the transfer lies in ensuring that land designated for public use is formally held by the relevant authority rather than remaining under the control of a private developer or housing society.

The development should not be interpreted as the CDA taking over privately owned residential or commercial plots in Gulberg Residencia. The land transferred is specifically identified as amenity and public-utility land set aside for shared facilities under the approved layout.

For existing plot owners, the transfer may provide greater regulatory clarity regarding the status of public facilities planned around their properties, including parks, roads and other community infrastructure.

However, the transfer of amenity land does not automatically resolve all development, dues, possession or project level issues within either housing scheme. The value and marketability of an individual plot will continue to depend on factors such as its location, on ground development, accessibility, possession status and surrounding infrastructure.

Similarly, regulatory clarity over amenity land is separate from the ordinary resale dynamics of private plots. While the transfer strengthens the formal planning position of land reserved for public use, prospective buyers should continue to verify project approvals, outstanding dues, development progress and possession status before making an investment decision.

The NAB facilitated transfer therefore represents an important administrative step in bringing public use land within the formal control of the CDA and strengthening long term clarity over the planning and protection of amenity areas in the two housing schemes.

Islamabad | ReNews Pakistan
The federal government and the Capital Development Authority are working on a potential regulatory framework for around 199 unauthorized housing schemes linked to Islamabad, with authorities considering giving such projects an opportunity to address planning and legal deficiencies and enter the formal regulatory system.

Interior Minister Mohsin Naqvi has said authorities are dealing with approximately 199 illegal housing schemes, including 62 projects located outside the territorial limits of Islamabad but marketed using the name of the federal capital.

Naqvi indicated that these schemes could be offered an option to enter a registration and regulatory process, allowing them to remove illegalities, fulfil outstanding requirements and comply with applicable planning rules. The move suggests a possible shift towards creating a regulatory pathway for some longstanding projects rather than relying exclusively on enforcement measures such as sealing or demolition.

The issue has gained renewed attention because of longstanding cases such as Ghauri Town, where thousands of residents have been living for years despite unresolved approval issues. The CDA continues to list Ghauri Town, across all its phases, among illegal housing schemes on its official portal.

Under the CDA’s existing regulatory framework, private housing schemes are required to first obtain approval for their Layout Plan, or LOP. After completing subsequent legal and technical formalities, developers must obtain a No Objection Certificate before they can lawfully begin development work or sell plots.

The CDA had also initiated a consultancy process in January 2026 for preparation of a feasibility study on the regularization and upgradation of illegal housing schemes and settlements in Islamabad, indicating that a structured policy response to the issue had already been under consideration.

Any eventual regulatory framework will have to address complicated situations in which plots were sold years ago, roads and basic infrastructure were developed and houses were constructed, but the original developer failed to obtain the statutory approvals required from the relevant authorities.

For residents already living in such schemes, a workable regulatory mechanism could potentially provide a path towards resolving longstanding problems involving property titles, municipal services, planning standards and legal status.

However, consideration of regularization should not be interpreted as confirmation that any individual scheme has received an NOC or formal approval. The legal status of a housing scheme will remain unchanged unless and until the CDA formally revises that status.

Prospective buyers should therefore continue to verify the latest LOP and NOC position of any housing project directly with the CDA before making a purchase. Buyers should also avoid paying additional premiums based on expectations that a currently unauthorized scheme will necessarily be regularized in the future.