NHA Housing Scheme Remains Incomplete After More Than 20 Years
Hundreds of serving and retired employees of Pakistan’s National Highway Authority (NHA) are still waiting for progress on a housing scheme in Islamabad’s Zone V, more than two decades after the project was initiated.
The scheme, managed by the National Highway Foundation (NHF), was intended to provide residential plots to NHA employees. However, repeated delays, financial constraints, a dispute over land ownership and unresolved administrative issues have prevented the project from being completed.
According to a report published by The Nation on October 22, 2026, affected employees are seeking intervention from the federal government to resolve the outstanding issues and move the long-delayed project forward.
How the NHA Housing Project Became Delayed
The project was initiated in 2004, when the National Highway Foundation engaged Karcon (Pvt) Ltd to arrange and develop approximately 2,550 kanals of land along Kahuta Road in Sihala, Islamabad.
The land was arranged in 2006, and development work began in 2007. However, work was halted in 2009 because of financial constraints faced by the foundation.
Although the Capital Development Authority (CDA) approved the scheme’s layout plan in 2010, the project did not progress towards completion as expected.
Key milestones in the project
| Year | Development |
|---|---|
| 2004 | National Highway Foundation established and land procurement and development arrangements initiated |
| 2006 | Required land reportedly arranged |
| 2007 | Development work began |
| 2009 | Work halted because of financial constraints |
| 2010 | CDA approved the layout plan |
| 2019 | A new development agreement was signed |
| 2021–2024 | Land dispute involving DHA led to litigation |
| February 2024 | NHA and DHA signed a land settlement agreement |
| 2025 | Possession of Sector C was returned to NHA; Sector D land transfer remained pending |
| October 2026 | Employees continued to await a resolution and meaningful progress |
The timeline illustrates how financial, legal and administrative problems have accumulated over the life of the scheme.
New Development Agreement Failed to Resolve All Problems
In 2019, the National Highway Foundation signed a fresh agreement with Luqman Brothers Construction Company to resume development.
The contractor reportedly carried out some work in Sectors A, B and D. However, a dispute emerged when the Defence Housing Authority (DHA) claimed ownership of land allocated to Sectors C and D.
The disagreement led to litigation between 2021 and 2024. Senior officials from the two organisations subsequently intervened, resulting in a land settlement agreement signed on February 22, 2024.
Under the settlement, DHA returned possession of Sector C to NHA in 2025. However, the transfer of approximately 600 kanals of land to the National Highway Foundation in exchange for Sector D remained unresolved at the time of the latest report.
The outstanding land transfer is a significant issue because development cannot proceed smoothly where ownership, possession or land allocation remains unsettled.
Expired Board Raises Questions About Project Management
Another concern is the governance of the housing scheme.
The three-year tenure of the National Highway Foundation housing scheme’s board of directors expired in January 2025. According to the report, NHA had not taken steps to reconstitute the board by October 2026.
An effective governing board is important for decisions involving funding, contractor oversight, land disputes, development schedules and the protection of employees’ investments.
The prolonged absence of a reconstituted board raises questions about how the project’s outstanding issues are being managed and who is responsible for ensuring timely decisions.
Allegations Over Land Procurement Referred to FIA
The housing project has also faced allegations concerning its original land procurement arrangements.
Former federal minister Murad Saeed reportedly referred the matter to the Federal Investigation Agency (FIA), raising concerns about the award of the land procurement contract to a third party and the process used to determine land prices.
The allegations included claims that the land may have been acquired at prices significantly higher than prevailing market rates at the time. Concerns were also raised about the subsequent termination of the contract and whether its agreed conditions had been fulfilled.
These are allegations reported in connection with the case and should not be treated as established wrongdoing without verified investigation findings or a competent authority’s decision.
NHA Says Stakeholder Meeting Will Be Convened
NHA Member Engineering Coordination Murshid Amin, who oversees the housing scheme, said the authority was aware of the outstanding problems.
He told The Nation that NHA Chairman Captain (Retired) Asadullah Khan had directed that a meeting involving all stakeholders be convened the following week to address pending matters.
The meeting could provide an opportunity to clarify the status of the land transfer, determine the steps required to resume development and establish responsibility for the remaining work.
However, the report did not confirm a completed resolution, a revised development schedule or a final date for handing over plots to employees.
What the Delay Means for Employees
The prolonged uncertainty has affected employees who invested their savings in anticipation of receiving residential plots.
For serving and retired workers, delays can create practical difficulties in planning a home, arranging construction finance and deciding whether to continue waiting for the project.
The passage of time also makes transparency increasingly important. Employees need clear information about the status of their individual allotments, land ownership, outstanding payments, development obligations and the conditions under which possession may eventually be granted.
The affected employees are looking towards Federal Minister for Communications Abdul Aleem Khan for intervention, according to the report.
What Needs to Happen Next?
Resolving the housing scheme’s problems will require more than another meeting. The key priorities include:
- Resolve the Sector D land issue: Complete the outstanding transfer or publicly clarify the legal and administrative steps still required.
- Restore effective governance: Reconstitute the foundation’s board and establish clear responsibility for project decisions.
- Publish a realistic development schedule: Explain what work remains, how it will be funded and when milestones are expected to be achieved.
- Clarify contractor obligations: Review the status of existing agreements and determine the work required to complete the scheme.
- Keep employees informed: Provide transparent updates on land, development, allotments and any outstanding financial requirements.
- Address allegations through due process: Clarify the status of any investigation or proceedings without treating unverified allegations as proven facts.
Conclusion
The NHA housing scheme in Islamabad’s Zone V demonstrates how prolonged financial difficulties, land disputes and governance gaps can undermine a housing project even after land has been arranged and a layout plan approved.
The planned stakeholder meeting may offer an opportunity to move the project forward, but affected employees will need concrete decisions, transparent reporting and measurable development progress rather than further assurances.
Until the outstanding land and administrative issues are resolved and a credible construction timetable is established, the future of the long-delayed scheme will remain uncertain.
Editorial note: The project history and latest developments in this article are based on reporting published on October 22, 2026. Allegations concerning procurement and land prices should be verified against official investigation records, court documents and statements from the relevant authorities.