Notification of Enhancement of Rental Ceiling For Privately Owned Residential Accommodation 2021

The government of Pakistan, Ministry of Housing and Works has issued the latest notification on 28th September regarding revision of increasing rental ceilings for hiring of residential accommodation at Islamabad and other specified stations i.e. Rawalpindi, Karachi, Peshawar and Quetta. Prime Minister of Imran khan has finally approved the rental ceiling amount of government employees up to 44pc which is truly an enough increase in salary. This allowance is only applicable to all the federal govt servants from BPS-01 to BPS-22.


Latest Notification of Rental Ceiling Increase 2021 Details


The Federal Government is pleased to enhance rental ceiling for hiring of residential accommodation in Federal Ministries/Divisions/Attached Department/Subordinate Officers at Islamabad and other specified stations i.e. Rawalpindi, Karachi, Lahore, Quetta and Peshawar as under w.e.f. 01-07-2021.

BPS Scale-wise

Previous Rental Ceiling Revised Rental Ceiling
Islamabad Other Stations Islamabad Other Stations
1-2 Rs. 4881 Rs. 4577 Rs. 7029 Rs. 6591
3-6 Rs. 7625 Rs. 6704 Rs. 10980 Rs. 9654
7-10 Rs. 11391 Rs. 10196 Rs. 16403 Rs. 14682
11-13 Rs. 17183 Rs. 14904 Rs. 24744 Rs. 21462
14-16 Rs. 21587 Rs. 18843 Rs. 31085 Rs. 27134
17-18 Rs. 28574 Rs. 24929 Rs. 41147 Rs. 35898
19 Rs. 37989 Rs. 32511 Rs. 54704 Rs. 46816
20 Rs. 47709 Rs. 41027 Rs. 68700 Rs. 59079
21 Rs. 57126 Rs. 49380 Rs. 82261 Rs. 71107
22 Rs. 68364 Rs.61965 Rs. 98444 Rs. 89230

The enhanced rental ceilings come into force with effect from  01-07-2021 and will apply to: –

  1. All cases of fresh hiring.
  2. Cases where the allottee/occupant is obliged to pay difference of rent to the owner out of his own resources. In such a case the rent may be increased upto the owner’s demand (indicated at the time of hiring) or the allottee/occupant’s revised rental ceiling whichever is less.
  3. Cases of houses hired under Rule 8(i) of the Accommodation Allocation Rules, 2002 or M/o Housing and Works’ O.M No. 2(3)/2003-Policy dated 31-07-2004 of which lease has expired. The lease agreement may be executed with the owner as per current rental assessment of the house or the occupant’s revised rental ceiling or the owner’s demand, whichever is the less.
  4. Cases of houses hired under Rule 90 of the Accommodation Allocation Rules, 2002 on self-hiring basis: In such a case, the existing rent of the house may be increased upto the revised rental ceiling of the allottee/occupant or the rental assessment of the house whichever is less.

The above rental ceilings may also be applied, mutatis-mutandis, in cases of requisitioned houses otherwise qualifying for increase in rent/compensation in accordance with the relevant rules/instructions.

Also Check:

In all other cases of hired houses except in cases where additions alterations have been made with the prior permission of the Government, the benefit of revised rental ceilings will be permissible only on the expiry of the current lease agreement.

The existing instructions issued on the subject from time to time will remain in force with the above modifications.

All the Ministries/Divisions/Attached Department/Subordinate offices will meet the increased expenditure out of their respective budgetary allocations and no additional funds will be allowed to them for this purpose during the financial year (2021-2021).

This issues with the concurrence of Finance Division vide their O.M No. 4(9)R-14/2007, dated 24-08-2021 and Cabinet Division No. F. 31/CM/2021-D, dated 24-09-2021.

Latest Notification of Rental Ceiling Increase 2021ls

Rental Ceiling Increase 2021 Details

The government of Pakistan, Ministry of Housing & Works has issued the official notification on 30th July 2021 in connection with concurrence for Enhancement of Rental Ceiling For Privately Owned Residential Accommodation 2021. The further details are given below;


Increase Rental Ceiling For Hiring of Private Residential Accommodation


The undersigned is directed to refer to the Finance Division O.M No.4(9)R14/2007-360, dated 05-07-2021 on the subject and say that: –

  1. As per clause 10(1) of the Islamabad Rent Restriction Ordinance, 2001 “The rent of residential as well as a non-residential building shall stand automatically increased at the end of every 03 years of its tenancy by 25% of the rent already being paid by the tenant”. However, it has already been clarified in para 3 of the draft summary for the Prime Minister’s that it is almost impossible for the government employees to hire a reasonable private house at Islamabad/Rawalpindi and other stations within the existing rental ceilings forcing them to pay the large differential amount on their own to bridge the gap between the authorized rental ceiling and demand of owners. Therefore, increase of 25% on the actual rent rate corresponds to almost 50% or even more increase on existing government rates.
  2. As per economic survey 2019-20 an increase of 8.2% inflation was recorded in 2018-19 and 7.1% in the year 2019-20 on account of Housing, Water, Electricity, Gas and other fuels. The said inflation have an impact on the rates of land and buildings resulting in increase in the rates of rent.

It is also added that the Pak.PWD has conducted market surveys in Islamabad and other specified cities of Pakistan and has proposed 44% increase in the rental ceiling. (Copy enclosed).

In view of the above the Finance Division is once again requested to accord concurrence to the draft summary for the Prime Minister as forwarded vide this Ministry’s letter dated 02-06-2021.

Notification of Enhancement of Rental Ceiling For Privately Owned Residential Accommodation 2021

 

Increase Rental Ceiling For Hiring of Private Residential Accommodation


Notification of Increase in Rental Ceiling 2021


Under Schedule 11. Rule 3(3). Serial No.14. entry 2 of Rules of Business, 1973, Ministry of Housing and Works is entrusted with the task of provision of Government owned office and residential accommodation for officers and staff of the Federal Government: acquisition: requisitioning and hiring of residential accommodation. The hiring of residential accommodation was decentralized w.e.t. 1.7.2004. However, it is for the Ministry of Housing and Works to revise rates of rental ceilings for hiring of residential accommodation in consultation with the Finance Division

An increase of 50% in the rental ceilings across all grades was approved and notified on 25.6.2018 (Annex-I). Since then the rent of private houses has escalated in the market due to influx of population towards big cities. It is almost impossible for the government employees to hire a reasonable private house at Islamabad Rawalpindi and other stations within the existing rental ceilings, forcing them to pay the differential amount on their own to bridge the gap between the authorized rental ceiling and demand of owners.

It is pertinent to mention that these circumstances have led to greater demand for allotment of government accommodation. There exists tremendous pressure for allotment of government owned accommodation and more than 28,000 applications are pending with the Estate Office. Moreover, there has been a ban on new construction of government owned accommodation since 1995.

The only way out of reducing this demand is to pay reasonable rental ceilings for privately hired accommodation. The Finance Division has also endorsed 44% increase in the existing rental ceiling (Annex-II).

Notification of Increase in Rental Ceiling 2021

In view of the above stated position, it is proposed that the rental ceiling for the Federal Government employees in BS-1-22 at Islamabad and five other specified stations i.e. Rawalpindi, Lahore, Karachi, Peshawar and Quetta may be enhanced @ 44% of existing rental ceiling w.e.f. 01-07-2021 is under:

Entitlement

B.S

Existing Rental Ceiling Proposed Rental Ceiling After 44% Increase
Islamabad Other Specified 
Stations
Islamabad Other Specified 
Stations
1-2 Rs. 4881 Rs. 4577 Rs. 7029 Rs. 6591
3-6 Rs. 7625 Rs. 6704 Rs. 10980 Rs. 9654
7-10 Rs. 11391 Rs. 10196 Rs. 16403 Rs. 14682
11-13 Rs. 17183 Rs. 14904 Rs. 24744 Rs. 21462
14-16 Rs. 21587 Rs. 18843 Rs. 31085 Rs. 27134
17-18 Rs. 28574 Rs. 24929 Rs. 41147 Rs. 35898
19 Rs. 37989 Rs. 32511 Rs. 54704 Rs. 46816
20 Rs. 47709 Rs. 41027 Rs. 68700 Rs. 59079
21 Rs. 57126 Rs. 49380 Rs. 82261 Rs. 71107
22 Rs. 68364 Rs.61965 Rs. 98444 Rs. 89230

Approval of the Honourable Prime Minister to the proposal contained in pura-4 above is solicited please. The Federal Minister for Housing and Works has seen and authorized submission of the Summary.

Summary of Rental Ceiling 2021

Approval of Rental Ceiling 44% For Federal Employees


Latest News (Islamabad): Prime Minister Imran Khan has finally approved the summary of increasing Rental Ceiling of 44% for the federal Govt employees. PM Pakistan has now signed the summary of rental ceiling. All the employees are waiting for the decision.

According to the details of summary; the rental ceiling is increased 44% for the Federal Govt servants BPS-01 to BPS-22. The brief details are underlying;

  • BPS-17 To BPS-18:   Rs. 41147
  • BPS-19:   Rs. 54704
  • BPS-20:   Rs. 68700
  • BPS-21:   Rs. 82261
  • BPS-22:   Rs. 98444

The decision is taken because increasing house rents speedily. Federal Government employees are more happy with the approval of this decision.

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Approval of Rental Ceiling 44% For Federal Employees

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