Islamabad High Court Suspends Termination Orders Against NAPHDA Employees

Islamabad — The Islamabad High Court (IHC) has granted interim relief to employees of the Naya Pakistan Housing and Development Authority (NAPHDA) by suspending recent termination orders issued against them. The decision was made during a hearing presided over by Justice Arbab Muhammad Tahir, who observed that the actions of the Acting Chairman appeared to be inconsistent with NAPHDA’s governing Act and Service Rules.

The court’s stay will remain in effect until a final decision is reached.

NAPHDA, established in 2020 through an Act of Parliament during the tenure of the Pakistan Tehreek-e-Insaf (PTI) government, was tasked with facilitating low-cost housing projects for low-income citizens. Since its inception, the Authority has launched numerous housing initiatives in cities including Islamabad, Lahore, Sargodha, Chiniot, and Nowshera, targeting the construction of over 122,500 housing units in collaboration with both public and private partners.

Major achievements of the authority include:

• 27,861 units constructed with the Akhuwat Foundation

• 31,391 units under the Mera Pakistan Mera Ghar (MPMG) scheme through individual loans

• 3,564 houses built in cooperation with the Workers Welfare Fund

• Initiatives for 26,716 units in Islamabad with CDA and FGEHA

• Over 20,000 units launched in Punjab and Khyber Pakhtunkhwa

The authority also oversaw a milestone in Pakistan’s financial sector, with private commercial banks issuing Rs. 120 billion in housing loans by June 2022 before the program was suspended by the caretaker government.

The controversy arose when the current federal government initiated steps to dissolve NAPHDA and appointed the Director General of the Federal Government Employees Housing Authority (FGEHA) as its Acting Chairman. The Acting Chairman, tasked with winding down the Authority’s operations, terminated the contracts of several long-serving employees.

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Affected staff challenged the decision in the IHC, arguing that the Acting Chairman had no legal authority to make such dismissals and was limited to day-to-day administrative functions. The petition further alleged discriminatory practices, citing violations of Article 25 of the Constitution, and noted that the positions in question had already been approved in the budget for the fiscal year 2025–26.

The court found merit in the petitioners’ claims and ordered that all termination notices be suspended until further proceedings.