The government of Punjab is preparing to launch a large-scale affordable housing project aimed at easing the growing housing shortage across the province. The initiative plans to deliver 37,000 housing units in phases, focusing on low- and middle-income families who struggle to access formal housing.
The project is part of a broader effort to strengthen housing institutions, improve construction standards, and expand access to secure, affordable homes.
Project Overview and Funding Structure
The initiative is being developed as a hybrid housing programme with financial support from the World Bank. The total estimated cost is $250 million, spread over a five-year period.
Under the approved framework:
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20,000 housing units will be constructed on government-owned land
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The remaining units will be delivered through private-sector partnerships
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A blended financing and delivery model will be used to speed up construction
This structure allows the government to scale delivery while maintaining affordability and quality.
Implementation and Site Selection
The project is being implemented through a dedicated Programme Management and Implementation Unit, with technical support from provincial planning and housing bodies. Authorities have already identified 41 government-owned sites across Punjab after coordination with land record and revenue departments.
Key preparatory steps completed so far include:
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Field verification of selected sites
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District-level coordination for compliance and approvals
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Alignment with international funding and monitoring requirements
These steps are intended to reduce delays once construction begins.
Focus on Urban Planning and Sustainability
Beyond housing construction, the government is also addressing long-term urban challenges. As part of the same planning framework, authorities have approved the construction of up to 1,000 groundwater recharge wells to help counter falling water tables in urban and semi-urban areas.
A pilot phase has already started in Lahore, where multiple recharge wells are operational and additional sites are under development.
Why This Housing Project Matters
Punjab faces increasing pressure from rapid urbanization, rising land prices, and limited access to formal housing. This project aims to:
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Increase the supply of affordable homes
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Improve construction quality and safety standards
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Reduce informal settlements
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Support planned urban growth
By combining public land, private delivery, and international financing, the government is attempting to create a sustainable housing model.
What to Expect Next
With site identification and groundwork largely complete, the housing units are expected to roll out in phases over the coming months. Detailed eligibility criteria, allocation methods, and application processes are expected to be announced separately once construction timelines are finalized.
Bottom Line
Punjab’s plan to build 37,000 affordable housing units represents one of the province’s most structured housing efforts in recent years. By leveraging public land, private sector capacity, and World Bank support, the project aims to deliver practical housing solutions while strengthening long-term urban development.
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