In a major relief for federal employees grappling with rising housing costs, the federal cabinet has approved an 85 percent increase in the rental ceiling for government staff from BS-1 to BS-22. The revised ceilings will apply to employees stationed in Islamabad, Rawalpindi, Lahore, Karachi, Peshawar, and Quetta.

According to official sources, the Ministry of Housing and Works had moved the proposal to the cabinet, citing soaring rents and inflation in major urban centers. The ministry observed that rental prices have surged sharply in recent years, while the last revision to the ceiling was made on September 28, 2021.

The Ministry highlighted that many employees were unable to find suitable housing within the current limits and were forced to pay significant amounts from their own pockets to meet market rates. The ongoing shortage of government-owned accommodation has further compounded the problem.

After reviewing the proposal, the Finance Division endorsed the ministry’s recommendation for an across-the-board 85 percent enhancement in the rental ceiling. The Ministry of Housing emphasized that the adjustment was essential to align official allowances with prevailing market rents and to reduce the financial strain on public servants.

The Prime Minister approved the summary for cabinet consideration under Rule 17(1)(b) of the Rules of Business, 1973, allowing the proposal to be circulated among cabinet members.

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With the cabinet’s approval now secured, the revised rental ceilings will take effect immediately. The decision is expected to provide significant financial relief to thousands of federal employees, making it easier for them to secure adequate housing and cope with the escalating cost of living in Pakistan’s major cities.