ISLAMABAD: The World Bank has flagged implementation challenges in the Punjab Affordable Housing Programme, even as institutional reforms under the initiative gather pace.
The USD208.16 million programme, approved in March 2022, aims to help the government of Punjab strengthen housing institutions and systems while expanding the supply and quality of affordable homes across the province. The project is scheduled to close on June 30, 2027.
While progress toward the Project Development Objective (PDO) remains rated “Moderately Satisfactory,” the overall Implementation Progress (IP) rating has slipped from “Moderately Satisfactory” to “Moderately Unsatisfactory.” The overall risk rating remains “Moderate,” though concerns over institutional capacity have risen to “Substantial.”
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Total disbursement to date stands at USD27.83 million, representing 13.37 percent of the total financing envelope under IDA. Of this, USD25.71 million has been released against the achievement of year 1, 2, and 3 Disbursement Linked Indicators (DLIs) and the Investment Project Financing window.
However, major disbursements tied to housing construction and delivery remain pending, as the program has yet to begin delivering housing units on the ground.
Despite being nearly midway through implementation, the number of housing units delivered under the program remains at zero.
The program targets the delivery of 77,000 housing units by June 2027, including 37,000 affordable housing units. It also aims to ensure that at least 20 percent of beneficiaries are women. Additionally, 37,000 housing units are expected to meet agreed green and climate-resilient design standards. But as of December 19, 2025, none of these output indicators have been achieved. Further, key DLIs linked to construction—9,000 affordable units by the private sector and 8,000 by the public sector—are marked as “Not Due,” with no physical progress reported so far. In contrast to slow physical implementation, institutional and systems reforms have shown measurable progress.
The Housing Market Information System (HMIS), Program Management Information System (PMIS), and Beneficiary Management Information System (BMIS) have all been developed, approved, and are operational. These milestones have triggered partial DLI disbursements.
The Punjab Cabinet approved revised Affordable Private Housing Scheme (APHS) Rules in June 2024, while associated regulations were cleared by the governing body of the Punjab Housing and Town Planning Agency (PHATA) in April 2025. Joint Venture rules have been drafted and submitted for cabinet approval. Location and infrastructure investment criteria have also been developed and are being applied, further strengthening the enabling environment for housing development. Overall, two out of five targeted housing policies, programs, and systems have been updated or operationalized to date. Some program action plan items have faced delays or restructuring. A comprehensive province-wide housing assessment was dropped after a rapid assessment was conducted and a more detailed study was integrated into the forthcoming Punjab Affordable Housing Policy.
However, development of the provincial housing policy has been put on hold pending notification and implementation of a draft national housing policy by the federal government.
Fiduciary reviews have been completed, and environmental and social safeguards are being strengthened in line with recommendations. However, PHATA has yet to incur expenditures from program funds under certain components, and sub-program investments have not yet commenced. A Mid-Term Review was conducted in October 2025, as the program enters a critical phase.
Copyright Business Recorder, 2026
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