Last Updated on February 11, 2026 by Galaxy World
Ministry of Housing and Works, Government of Pakistan, issued a recent Notification No. F. No. 4(8)/92-Policy Islamabad0n 11-02-2026 in connection with Decentralization Hiring of Residential Accommodation 2026 for Employees at Six Specified Stations. The details are as follows:
Decentralization Hiring of Residential Accommodation 2026 for Employees of BPS-01 to BPS-22 at Six Specified Stations
In supersession of this Ministry’s O.M of even No. dated 31-07-2004, on the subject cited above, and to state that in order to simplify the existing procedure/modalities for hiring of residential accommodation, the following guidelines shall be observed by the respective Ministry / Division / Departments in letter and spirit while processing the cases of hiring of residential accommodation for their employees:-
Each Ministry / Division / Department is responsible for hiring residential accommodation for their employees within their budgetary resources. The specification, covered area of houses, and the present rental ceiling of Federal Government Employees (BPS-1-22) at the six specified stations, i.e., Islamabad, Rawalpindi, Lahore, Karachi, Peshawar, and Quetta, are annexed for guidance.
Guidance for Hiring at Islamabad, Rawalpindi, Lahore, Karachi, Peshawar, and Quetta
- The FGS shall arrange private accommodation for hiring of his entitlement and submit the CNIC, ownership documents, site map, rent demand of the owner, and relevant bank account details. An affidavit from the employee stating that his/her spouse is not an FGS or, in such a case, not availing the hiring facility at the same station.
- The FGS’s department shall allow permission to the applicant to occupy the residence w.e.f. the date of submission of the application or the date of vacation of the previous hired accommodation, whichever is later. In case the employee was previously an allottee of a hired house, a vacation report of the previous house shall be provided by the allottee to their office, having the signatures of the owner/allottee along with a certificate that no outstanding utility bills or unpaid costs of damages or deficiencies caused to the property during the occupancy of the previous house are pending against the allottee.
- The inventory report should be signed by the FGS and the owner. The FGS shall be responsible for compensating the loss (if any) to the owner. The department shall not be a party.
- Each Ministry/Division will constitute an Assessment Committee comprising three members, headed by a BS-19 officer and any other officer of BS-18/17. Whereas, in the case of Departments, the Chairman of the Committee will be the BS-18 officer of the department and accompanied by any of the two officers/officials of BS-17/16, to assess the rent of the house and submit an assessment report keeping in view the rental ceiling of the allottee. The physical inspection of the house may be carried by any one of the nominated officer/official. The hiring shall be made on the basis of the covered area in the map indicated on the house measurement. However, the details of rooms, etc. is not essential.
- The hiring procedure shall be finalized at the earliest. On completion of the procedure, the Ministry/Division/ department shall issue the sanction and sign a lease agreement with the owner of the premises. The details of the house, owner, allottee, and period of the lease agreement will be mentioned in the Sanction letter. Normally lease shall be signed for a period of three years. Each Ministry/ Division/ Department will grant one year advance rent, during the lease period, and the remaining payment will be allowed on six monthly basis, keeping in view their budgetary position. All payments to the owner will be made through AGPR concerned. Income tax will be deducted, wherever applicable.
- Extension in the agreement will be made by the concerned Ministry/ Division/ Department, and in case of transfer to another Ministry/ Division/ Department, the relevant file shall be forwarded to the concerned Ministry/ Division/ Department on the request of the concerned organization.
- An allottee of a hired house shall, three months before the expiry of the period of lease, either persuade the owner for its renewal and produce his consent or shall himself locate another house or flat for hiring. His office shall in no way be responsible to provide alternate accommodation for hiring to the allottee of a hired house
- A hired house shall be allotted to the FGS at the place/station of posting at six specified stations i.e. Islamabad/Rawalpindi, Lahore, Karachi, Quetta & Peshawar.
- An allottee who has joined a Ministry / Department on transfer or posting from another station shall produce a “No Demand Certificate” in respect of accommodation occupied by him at the previous station before he is allotted accommodation at the new place of posting.
- When both hus/wif are employed at the same station, only one of them shall be entitled to allotment of hired accommodation, and the other will be entitled to house rent allowance.
- The employees appointed in the Ministry / Division/departments against a regular post shall be eligible for hiring of accommodation. However, an individual employed / re-employed on contract shall be eligible for hiring of accommodation, if the facility of the hiring/accommodation is mentioned in the terms & condition of the contract appointment. Moreover, the incumbents of posts filled on a daily wage basis or hired from contingencies and on an ad-hoc basis are not entitled for hiring of accommodation.
- If any employee on his transfer or posting from a corporation/ autonomous or semi-autonomous organization is allowed by such organization to retain accommodation in his occupation, such accommodation may be taken over by his new office on payment of its rent as approved by such organization or a sum equal to the occupant’s rental ceiling, whichever is less.
- Ministry/ Division/ Departments shall arrange for the allocation of necessary funds to meet the expenditure under the relevant head of account for the payment of rent for the residential buildings.
- Ministry/Division/Departments shall ensure the stoppage of house rent allowance from the pay of the allottee.
- The allottees of hired accommodations are exempted from the deduction of 5% rent.
- The allottee/occupant will be responsible for payment of all utility bills during his/her occupation. The allottee will also be responsible for any damage caused to the house due to their negligence.
- Hiring in the rural areas of Islamabad/Rawalpindi may be allowed at par with urban area and one step below assessment will not be applicable henceforth.

