INCREASE IN RENTAL CEILING FOR HIRING 2021 OF FEDERAL EMPLOYEES

A notification has been issued 30th July 2021 in connection with the enhancement of Rental Ceiling for hiring 2021 for Federal Govt. Employees by Ministry of Housing & Works.Further detail of said notification in same is as under;


INCREASE IN RENTAL CEILING FOR HIRING 2021 OF FEDERAL EMPLOYEES


The undersigned is directed to refer to the Finance Division 0.M No.4(9)1, 14/2007-360, dated 05-07-2021 on the subject and say that: –

  • 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 pars 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.
  • 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.

INCREASE IN RENTAL CEILING

  • 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.

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