ISLAMABAD (special crosspondent) – The Federal Government Employees Housing Authority (FGEHA) has formally decided to seek a five-year extension of its income tax exemption, following an Executive Board approval to propose the measure to the federal government through the Ministry of Housing and Works.

Authority Justifies Non-Profit Status

According to reports, the Authority maintains that it functions as a public welfare organisation on a “no-profit, no-loss” basis. Its core mandate remains the provision of affordable housing to both serving and retired federal government employees, rather than the generation of commercial revenue. This approach mirrors broader economic policy adjustments currently under review by the federal cabinet.

FGEHA officials clarified that the entity’s income is primarily derived from instalments, service charges, and transfer fees. These funds are reportedly earmarked exclusively for the development of residential housing schemes and the coverage of essential administrative expenditures.

Extension Request and Regulatory Amendments

The government previously extended an income tax exemption to the FGEHA covering the period from 2020 through 30 June 2024. With that concession having expired, the Authority is now pursuing a renewed exemption spanning 1 July 2024 to 30 June 2029. To formalize this, the FGEHA intends to propose specific amendments to the Income Tax Ordinance, 2001.

New Land Regulations and Administrative Decisions

During the recent executive proceedings, the Board also greenlit the Land Acquisition (Land Sharing Basis) Regulations 2026. This policy allows land-sharing ratios with private landowners to be calculated on a project-specific basis, tailored to individual financial and development requirements. Additionally, the Board moved to rename Road No. 804 in Sector G-14, Islamabad, in honour of the spiritual figure Chan Shah Kazmi, pending final federal cabinet approval.

Project Delays and Ongoing Development

The status of ongoing housing projects remains a subject of oversight, particularly following concerns raised by the Senate Standing Committee on Housing and Works regarding previous delays. While the Ministry of Housing has instructed the Authority to prioritize the completion of existing ventures over the initiation of new ones, development activity within Sectors F-14 and F-15 is reportedly proceeding at an accelerated pace.