Punjab Set to Launch Construction of 37,000 Affordable Houses

Jan 12, 2026 | Public Policy

LAHORE — The Punjab government is preparing to launch a large-scale housing initiative involving the construction of 37,000 housing units across the province within the next couple of months, as preparatory work for the project enters an advanced stage.

The initiative, titled the Punjab Affordable Housing Programme (PAHP), is a World Bank-funded hybrid housing scheme valued at $250 million over five years. The programme is aimed at strengthening housing institutions while significantly increasing the availability and quality of affordable housing for low- and middle-income groups in Punjab.

According to an internal report presented to the provincial government, the programme targets the delivery of 37,000 housing units through a blended development model. Of these, 20,000 units will be constructed on state-owned land using World Bank financing, while the remaining units will be delivered through private sector participation to ensure long-term sustainability.

Implementation of the project is being carried out through a structured institutional framework involving the Urban Unit and the Punjab Housing and Town Planning Agency (PH&TPA) under the Programme Management and Implementation Unit (PMIU). To ensure readiness, 41 government-owned sites have been identified across the province in coordination with land record and revenue authorities. Field verification has been completed, and district administrations have been engaged in line with World Bank protocols to support phased execution.

Beyond housing, the report outlines parallel urban and environmental initiatives. To address the rapidly depleting groundwater table, the government has, in principle, approved the construction of 1,000 groundwater recharge wells across Punjab this year. The project, to be executed by Water and Sanitation Agencies (Wasas), has already begun in Lahore on a pilot basis, where three recharge wells are operational and more than 15 additional sites are being prepared.

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Urban flooding mitigation is also a key focus. Parks and Horticulture Authorities (PHAs) have been tasked with redesigning greenbelts by lowering their elevation to facilitate natural drainage. This shift from traditional raised greenbelts is intended to reduce waterlogging during heavy rainfall and improve stormwater management across cities.

The report also highlights progress on the “Lungs of Lahore & Ring Road Forestation Project,” a large-scale environmental initiative aimed at combating smog and improving air quality by creating a forest-like green buffer around the city. The project is expected to be replicated in other districts.

Meanwhile, Punjab’s flagship housing scheme, Apni Chhat Apna Ghar, has crossed a major milestone with over 50,000 homes completed in 2025, while the Apni Zameen Apna Ghar programme has entered its implementation phase, offering free residential plots to landless families across 19 districts.

Together, these initiatives underscore the provincial government’s push toward affordable housing, environmental sustainability, and inclusive urban development.

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