The federal government is set to grant relief to federal employees as the Ministry of Housing and Works has forwarded a summary to the federal cabinet seeking an increase in the monthly rental ceiling.
The move follows the Finance Division’s approval of a uniform 85 percent rise in rental ceilings across all employee categories. The division has already conveyed its concurrence to the housing ministry in writing.
Previously, the Ministry of Housing had proposed varying increases: a 100 percent raise for employees in Grades 1 to 10, 75 percent for Grades 11 to 16, 65 percent for Grade 17 to 19 officers, and 60 percent for officers in Grades 20 to 22. However, the matter remained pending for several months.
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Officials say three separate market surveys were conducted to assess prevailing rent levels. The first survey was carried out by the Estate Office, the second by the Public Works Department (PWD), and the most recent by the Pakistan Bureau of Statistics (PBS). The housing ministry’s current summary is based on PBS findings.
The federal cabinet will now review the positions of both the Finance Division and the housing ministry before making a final determination. However, officials suggest that the likelihood of approving the uniform 85 percent increase is high.
Rents in major cities including Islamabad, Lahore, Karachi, Peshawar, and Quetta have surged in recent years, putting additional financial pressure on government employees. Under policy, the rental ceiling is revised every three years. The last revision took place on September 18, 2021.
The delay in raising the ceiling has caused growing concern among employees. Sources in the housing ministry said Prime Minister Shehbaz Sharif has instructed that the summary be approved through circulation, and a final decision is expected within the next 24 hours.
