USD200m Punjab Housing programme: World Bank proposes 21-month extension
ISLAMABAD: The World Bank has proposed a 21-month extension of Punjab’s USD200 million Affordable Housing Programme until March 2029, along with the introduction of a beneficiary-led construction model and demand-side subsidies, after downgrading the programme’s implementation progress to “Moderately Unsatisfactory” amid delays in the actual delivery of housing units.
According to World Bank documents, actual delivery of housing units has yet to begin despite the USD200 million financing package approved in 2022.
The programme’s overall implementation progress was rated “Moderately Unsatisfactory”, while its overall risk rating was raised from “Moderate” to “Substantial”.
READ MORE: Punjab housing scheme: WB flags implementation challenges
The Punjab Affordable Housing Program, approved in March 2022, aims to strengthen housing institutions and systems and increase the quantity and quality of affordable housing in the province.
The Bank said that USD41.12 million, or 20.17 percent, of the revised USD203.82 million financing had been disbursed, leaving USD162.70 million undisbursed.
The programme was originally scheduled to close on June 30, 2027. However, the World Bank said restructuring was underway, including a proposed 21-month extension to March 2029, the introduction of a beneficiary-led construction modality, a demand-side subsidy window, and an expanded technical assistance package. A major concern is the lack of physical delivery of housing. The programme had set a target of 77,000 housing units to be delivered in Punjab, including 37,000 affordable housing units. However, the latest document said that delivery had not yet commenced.
The programme also targets the construction of 37,000 affordable units to agreed standards, including green design principles promoting climate resilience and sustainability. However, no such units had been delivered as of May 2026. The World Bank said the programme had nevertheless made progress in establishing the institutional architecture required for affordable housing delivery.
Key achievements include the development and operation of a Housing Market Information System (HMIS), Programme Management Information System (PMIS), and Beneficiary Management Information System (BMIS).
The Punjab Cabinet approved revised Affordable Private Housing Schemes (APHS) Rules on June 25, 2024, while the PHATA Governing Body approved associated regulations on April 17, 2025. However, implementation of several critical actions remains pending.
The documents said beneficiary eligibility criteria for Tier-1 units were still being developed, while innovative core housing prototypes had been designed, but their costing and feasibility assessments remained underway. Similarly, processing of developer applications under the revised APHS framework was expected to commence soon.
The development of a comprehensive Punjab housing policy has also been put on hold pending notification and implementation of the federal government’s national housing policy.
The report identified technical design, institutional capacity for implementation, and sustainability as substantial risks, while the overall programme risk rating was also upgraded to “Substantial”. On the positive side, the World Bank said the HMIS, PMIS, and BMIS were operational, while location and infrastructure investment criteria had been developed, approved, and were being applied.
Of the programme’s disbursement-linked indicators, milestones relating to the HMIS, location and infrastructure investment criteria, PMIS, and BMIS had been achieved, while the rules and regulations indicator was partially achieved. However, key construction-related targets remain pending, including 9,000 affordable units by the private sector, 8,000 by the public sector, and 16,000 affordable units delivered to eligible beneficiaries.
The restructuring aims to address implementation delays and improve the programme’s chances of meeting its housing delivery objectives.
Copyright Business Recorder, 2026