The Ministry of Housing and Works has issued a notification approving an 85% increase in the rent ceiling for all federal government employees, effective November 1, 2025.
The revision, approved by the federal cabinet and endorsed by the Finance Division, marks the first major rent adjustment since September 2021. The hike will apply uniformly to employees from BS-1 to BS-22 across six major cities — Islamabad, Rawalpindi, Lahore, Karachi, Quetta, and Peshawar.
Officials stated that the move comes in response to a sharp rise in urban housing rents and growing population pressure, which had made it difficult for many employees to find suitable accommodation under the previous rates.
Federal Minister for Housing and Works, Mian Riaz Hussain Pirzada, congratulated government staff on the announcement, emphasizing that employee welfare remains a top priority. “This increase will help reduce the financial strain on employees and ensure better living conditions,” he said.
The minister also noted that the adjustment will help ease pressure on the State Office, especially in Islamabad, where 17,400 government housing units are available but over 43,000 applicants are still awaiting accommodation.
The Ministry reaffirmed its commitment to addressing housing challenges and providing better facilities to federal employees across Pakistan.
