Government of Pakistan, Ministry of Housing & Works has issued a letter on 30-07-2021 to Finance Division regarding Enhancement of Rental Ceiling for Hiring 2021 Federal Employees. The details of the same are as under:
Enhancement of Rental Ceiling for Hiring 2021 Updates
The undersigned directs to refer to the Finance Division O.M No.4 (9) R-14/2007-360, dated 05-07-2021 on the subject and say that:-
- As per clause 10(1) of the Islamabad Rent Restriction Ordinance, 2001 “The Rent of residential as well as a non-residential building shall stand automatically increased at the end of every 03 years of its tenancy by 25% of the rent already being paid by tenant”. However, it has already clarified in para 3 of the draft summary for the Prime Minister’s that it is almost impossible for the government employees to hire a reasonable private house at Islamabad/Rawalpindi and other stations within existing rental ceilings forcing them to pay the large differential amount on their own to bridge the gap between the authorized rental ceiling and demand of owners. Therefore, an increase of 25% on the actual rent rate corresponds to almost 50% or even more increase on existing government rates.
- As per the economics survey 2019-20 an increase of 8.2% inflation they recorded in 2018-1 and 7.1% in the year 2019-20 on account of Housing, Water, Electricity, Gas, and other fuels. The said inflation has an impact on the rates of land and buildings resulting in an increase in the rates of rent.
Market Survey by Pak.PWD and Proposing of 44% Increase in Hiring
2. The Pak. PWD has conducted market surveys in Islamabad and other specified cities of Pakistan. It has proposed a 44% increase in the rental ceiling.
3. In view of the above Finance Division is once again requested to accord concurrence to the draft summary for the Prime Minister. The same they forwarded vide this Ministry’s letter dated 02-06-2021.
The request of Galaxy World to Increase House Rent Allowance
It is a good proposal and the Finance Division should take action on this. The reason is clear due to the increase in rents of the houses in Rawalpindi/Islamabad and other specific cities. It is also a request to the Finance Division that not only Hiring they should increase but also the House Rent Allowance. The rates of HRA are minor as compared to the rents of the houses. Government increases House Rent Allowance in 2018 last time. The HRA, the Government should increase all over Pakistan. This forum requests the Govt to keep in mind the difficulties of other employees too. The government knows it is not possible for an employee to rent a House even in a small city in just 2000/- or so. I hope Finance Division will also take steps to enhance the HRA in all cities.
Latest Updates of Rental Ceiling of Hiring
According to the various news, the Finance Division has approved a 25% increase in hiring. Finance Division has written a letter to the PM Office for its approval. If the prime Minister of Pakistan approves it then the expected rates of 2021 hiring will be as under:
Update as on 20-08-2021
Latest Updates of Hiring as on 24-08-2021
Summary Submitted to the Honourable Prime Minister for 44%
An increase of 50% in the rental ceilings across all grades was approved and notified on 25.06.2018 (Annex-I), Since then the rent of private houses has escalated in the market due to the influx of population towards big cities, it is almost impossible for the government employees to hire a reasonable private house at Islamabad/Rawalpindi and other stations within the existing rental ceilings, forcing them to pay the differential amount on their own to bridge the gap between the authorized rental ceiling and demand of owners.
Special Thanks: Mr. Altaf Hussain Abbasi
Updates of Hiring Raise as on 11-09-2021
According to the Daily 92 News, the Prime Minister of Pakistan has signed/approved the summary for a 44% increase in the rental ceiling. This news may be true or not as it is a newspaper report. If the news is true then it will be good news for the Federal employees of specific cities of Pakistan. As soon as I get the approved summary of the same, I shall upload the same at this post for the information of employees.
Updates as on 12th Sep 2021
The online Geo Newspaper also published the same news of 44% approval of rental ceiling for hiring for the federal employees of specific cities. According to the same online newspaper, Prime Minister Imran Khan has approved the summary. Let’s wait for the confirmed copy of the same.
Special Thanks: Mr. Rafiq Ahmad Buriro
The daily Jang dated 13-09-2021 mentions that the Prime Minister of Pakistan has sent this summary to the Federal Cabinet for approval. After the approval of the same from FC, the concerned department will issue the Notification.
Latest News of Hiring 20-09-2021
According to the latest news as per DAWN TV Channel, the PM has called the Federal Ministers meeting on 21-09-2021 and there the agenda of the Enhancement of Hiring is also included in that meeting.
Special Thanks: Mr. Asad Ahmed Baig
The Federal Cabinet meeting started at 1300 HRS on 21st Sep 2021. Hope for the best regarding the 44% raising in hiring amount.
Updates as on 21-09-2021 (Congratulations)
According to the Federal Minister of Information, Fawad Ch, the cabinet has approved the 44% increase in Rental Ceiling for Hiring. The Federal Government employees will soon get this increased allowance. Congratulations to the employees of the Federal Government for specific cities.
Notification of Increase in Hiring Rates 2021
- Mr. Altaf Hussain Abbasi
- Mr. Majid Jahangir
- Mr. Awais Ahmad
- Mr. Nadeem Gujjar