Cabinet approves right-sizing of housing ministry, closure of construction subsidiaries

Key changes include shutting down NCL, restructuring FGEHA, and outsourcing Estate Office operations

The federal cabinet has approved a right-sizing plan for the Ministry of Housing and Construction, which includes the closure of several subsidiaries and the restructuring of key departments.

The cabinet decided to shut down the National Construction Company (NCL), a subsidiary of the ministry, ceasing all new projects under its operations.

Similarly, the Pak Environmental Planning and Architectural Consulting (PEPAC) will also be closed, with no new projects to be initiated.

As part of the downsizing, the government plans to dissolve the Pakistan Public Works Department (Pak PWD) by June 30, 2025. This will be facilitated through the issuance of the Civil Servants Amendment Act.

The Federal Government Employees Housing Authority (FGEHA) will undergo a major transformation, becoming a self-governing and self-financing body. The board of directors will be restructured under the State Enterprises Act to include independent directors, with the process set to be completed by December 31, 2025.

A similar approach will be applied to the Pakistan Housing Authority, where a new board of directors will be established.

The cabinet has also decided to outsource operations of the Estate Office. As a pilot project, Chamba House and Qasr-e-Naz will be the first facilities to be outsourced. The Right-Sizing Committee has been tasked with preparing an implementation plan for the Estate Office by January 25.

Additionally, the Sindh Infrastructure Development Company will be converted into the Pakistan Infrastructure Development Company. Further decisions regarding its functions will be made by a ministerial committee.

The cabinet directed the Right-Sizing Committee to present its implementation plan by January 20. The current staff-to-officer ratio of 7:2 in the Ministry of Housing and Construction will be adjusted to 5:2.

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