Court Rejects Govt Move to Fire Employees of Naya Pakistan Housing and Development Authority

The Islamabad High Court has suspended the termination orders issued against employees of the Naya Pakistan Housing and Development Authority (NAPHDA), providing interim relief to the affected staff until final adjudication of the case. NAPHDA was established in 2020 through an Act of Parliament by the Government of Pakistan. The Authority was created to facilitate the construction of low-cost housing for low-income citizens across the country. Since its formation, NAPHDA has undertaken several housing projects in cities such as Islamabad, Lahore, Sargodha, Chiniot, and Nowshera, aiming to construct approximately 122,507 housing units in collaboration with various public and private sector partners. Key achievements include the construction of 27,861 units in partnership with the Akhuwat Foundation, 31,391 units through individual loans under the Mera Pakistan Mera Ghar (MPMG) scheme, and 3,564 houses built in coordination with the Workers Welfare Fund. In Islamabad, NAPHDA, alongside the Capital Development Authority (CDA) and the Federal Government Employees Housing Authority (FGEHA), initiated 26,716 housing units. Additionally, over 20,000 housing units were launched in Punjab and Khyber Pakhtunkhwa in collaboration with various development authorities. Notably, private commercial banks lent Rs. 120 billion in housing loans by June 2022, marking a historic first for Pakistan’s banking sector before the program was suspended by the then caretaker government. Recently, the current federal government moved to close NAPHDA and appointed the Director General of FGEHA as Acting Chairman of the Authority with additional charge. Upon assuming office, the Acting Chairman tasked with winding down NAPHDA’s operations terminated the contracts of a large number of employees who had served the organization for several years. The affected employees challenged their termination before the Islamabad High Court, arguing that under the governing rules, the Acting Chairman is only authorized to perform day-to-day administrative duties and does not have the legal authority to hire or dismiss employees. They further contended that the terminations were discriminatory, as others with similar qualifications and experience were retained on political and selective grounds, an action that contravenes Article 25 of the Constitution. The petition also noted that budgetary allocations for these posts had already been approved for the fiscal year 2025–26. During today’s hearing, Justice Arbab Muhammad Tahir suspended the termination orders and remarked that the Acting Chairman’s actions appeared to be in violation of the NAPHDA’s Act and Service Rules. The Court’s order will remain in effect until a final decision is reached on the matter.