Islamabad Government housing scandal: 1,841 houses found illegally sublet to private tenants

A major irregularity in the management of government accommodation has come to light after Federal Interior Minister Mohsin Naqvi

ISLAMABAD: A major irregularity in the management of government accommodation has come to light after Federal Interior Minister Mohsin Naqvi revealed that 1,841 government-owned houses in Islamabad had allegedly been rented out to private individuals by their official allottees.

The minister announced strict action during a late-night inspection of the Kashmir Chowk underpass project, warning that those involved would face legal consequences without any preferential treatment.

The disclosure has exposed a long-standing practice in which government employees allegedly obtain subsidised accommodation but earn additional income by renting the properties to private tenants.

Official Survey Reveals Widespread Violations

According to data compiled by the Estate Office, Islamabad has approximately 25,000 government houses and flats listed in official records, although around 17,500 physically exist across different sectors.

Joint inspection teams comprising the Estate Office and Intelligence Bureau have so far examined 13,555 properties. Their findings revealed several violations:

– 914 houses were completely rented out or occupied by unauthorised individuals and have reportedly been vacated.
– 382 houses were partially sublet, with portions or individual floors rented to private tenants. Show-cause notices have been issued.
– 2,593 properties contained illegal extensions, encroachments and unauthorised constructions, including shops in garages and makeshift bachelor hostels.

The government has directed authorities to complete the survey by December 31, 2025.

How the Illegal Rental Network Operates

Sources revealed that government employees from Grade 1 to Grade 22 receive accommodation at subsidised monthly rents ranging from Rs2,000 to Rs5,000, deducted directly from their salaries.

However, some allottees allegedly rent these properties to private families, students and bachelors for amounts ranging between Rs18,000 and Rs45,000 monthly.

Property dealers operating in areas including G-7, G-8 and I-8 reportedly facilitate these arrangements. The absence of proper tenant verification has also raised security concerns in the federal capital.

Sectors G-6, G-7, G-8, G-9, I-8 and I-9 have reportedly emerged among the most affected areas.

43,000 Employees Await Government Accommodation

The housing shortage has further intensified the controversy. Ministry of Housing figures indicate that approximately 43,000 government employees are waiting for official accommodation, while only around 17,400 houses are available.

On November 3, 2026, the National Assembly Standing Committee on Housing and Works, chaired by Maulana Abdul Ghafoor Haideri, expressed concern over private individuals occupying government properties while deserving employees remain on waiting lists.

The committee also questioned the closure of Pakistan PWD, which affected more than 5,000 employees and their families.

Meanwhile, the government has increased rental ceilings for privately hired accommodation by up to 85 per cent to address the shortage.

Three-Pronged Crackdown Announced

Authorities have initiated action on three fronts. First, the 914 fully sublet properties are being recovered and their allotments cancelled to accommodate waiting employees.

Second, the 382 employees involved in partial subletting have received seven-day notices, with possible allotment cancellation, departmental penalties and FIA referrals for further action.

Third, CDA enforcement teams will target 2,593 properties containing illegal constructions and encroachments.

The operation forms part of the government’s wider campaign against unauthorised constructions and illegal housing developments.

Officials estimate that continued enforcement could help recover thousands of additional government houses, potentially easing the accommodation crisis faced by federal employees.

The campaign has placed government housing management under scrutiny, with questions now focusing on transparency, accountability and the fair distribution of public properties.