ISLAMABAD: The Federal Government has unleashed a massive hike in rental ceilings for federal employees’ residential accommodations in Islamabad and key cities—Rawalpindi, Lahore, Karachi, Quetta, Peshawar—effective November 1, 2025.
The Ministry of Housing and Works’ Office Memorandum declares the revamp aligns government ceilings with soaring market rates, covering new hirings and expired leases.
In Islamabad, BPS 1–2 ceilings skyrocket from Rs7,029 to Rs13,004; BPS-22 from Rs98,444 to Rs182,121. Other stations: BPS 1–2 from Rs6,591 to Rs12,193; BPS-22 from Rs89,230 to Rs165,076.
Breakdown:
Self-paying allottees can now cover differentials up to owner demand or new ceiling—whichever lower. Rules 8(i)/9(i) hires—private or self-hired—qualify for upgrades.
No extra budget—ministries absorb via FY2025–26 provisions. Finance and Cabinet Divisions approved the rationalization to counter rental inflation.


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