The Khyber Pakhtunkhwa government has approved a set of measures aimed at bringing unregistered housing schemes across the province into the legal framework, with Chief Minister Sohail Afridi giving the go-ahead through the Land Use & Building Control Authority (LUBCA). The KP illegal housing schemes regulation plan is designed to formalize developments that have so far operated outside official oversight, exposing buyers to legal and infrastructure risks.
As part of the plan, 21 new posts have been approved within LUBCA to strengthen its capacity to handle the expanded regulatory workload. A centralized building-plan approval system is also being introduced, though notably this system will exclude the Peshawar Development Authority (PDA), suggesting a shift toward more unified oversight for schemes outside PDA’s existing jurisdiction.
How Revenue and Fees Will Be Handled
Under the approved framework, revenue generated from regulating these housing schemes will be split, with LUBCA retaining 25% and the remaining 75% going to Tehsil Municipal Administrations (TMAs). This revenue-sharing arrangement is intended to give local municipal bodies a direct financial stake in the regulation process.
The government is also reviewing a debris fee exemption for smaller plots of up to 5 marlas, with the proposal currently before the Finance Committee. If approved, this exemption could ease the financial burden on smaller property owners as the new regulatory system comes into force, particularly benefiting lower and middle-income households with modest-sized properties.
A Two-Week Deadline to Get Moving
Officials have been given a two-week deadline to submit an integration plan detailing how the new regulatory framework will be rolled out across the province. This tight timeline suggests the KP government wants visible progress on formalizing housing schemes relatively quickly rather than allowing an extended planning phase.
CM Afridi framed the initiative’s core purpose plainly, stating that the “main purpose… is to bring unregistered housing schemes within the legal framework.” For residents who have purchased property in unregistered schemes, formal regulation could eventually mean better access to municipal services and clearer legal standing for their investments, though the practical rollout across KP’s many informal housing developments will likely take time to materialize fully. This regulatory push echoes a similar shift toward formal registration processes seen recently in Pakistan’s Fuel Relief Scheme, which has already registered over 1 million beneficiaries nationwide.