ISLAMABAD: The Federal Government Employees Housing Authority (FGEHA) has signed a memorandum of understanding (MoU) with Future Development Holdings (Private) Limited (FDHL) to develop a modern residential scheme within Capital Smart City in Rawalpindi district, expanding housing opportunities for federal government employees and the general public.
The agreement, signed at FGEHA headquarters in Islamabad on Wednesday, October 21, 2026, provides for the development of a housing project on approximately 2,000 kanals of land under a land-sharing model.
According to FGEHA, the proposed project will be developed through collaboration with the private sector, with the aim of providing planned residential facilities while making effective use of available land and resources.
The MoU was signed by FGEHA Chief Engineer Syed Muhammad Hassan and FDHL Executive Director Brigadier (Retd.) Muhammad Nadeem Aslam in the presence of senior officials from both organisations.
Speaking at the ceremony, FGEHA Director General Capt. (Retd.) Muhammad Zafar Iqbal said the partnership would support the authority’s efforts to provide affordable and quality housing to federal government employees.
He said Capital Smart City offered a planned residential environment with educational institutions, healthcare services, community centres, mosques, parks, sports facilities and commercial areas.
The development also includes wide roads, landscaped green belts and organised infrastructure intended to support modern residential requirements, he added.

The director general said cooperation with private-sector developers would help FGEHA expand housing opportunities while ensuring effective utilisation of available resources.
He described the agreement as part of the federal government’s broader efforts to advance residential projects through public-private partnerships.
According to an FGEHA spokesperson, the proposed scheme is expected to provide secure and modern residential facilities for federal government employees in Rawalpindi district and adjoining areas.
The authority said the project would be pursued with an emphasis on quality, transparency and efficient implementation.
Muhammad Zafar Iqbal also briefed participants on FGEHA’s ongoing housing initiatives, saying several residential projects in Islamabad and Karachi had been completed, while others were approaching completion.
He said the Federal Minister for Housing and Works and the Secretary of the Ministry of Housing and Works had prioritised the provision of affordable and secure accommodation for government employees.
Directions had been issued to ensure timely completion of development projects and maintain transparency throughout their implementation, he added.
The director general reaffirmed the authority’s commitment to completing ongoing schemes within their stipulated timelines and improving residential facilities in accordance with modern standards.
He said partnerships with private-sector developers would remain an important part of FGEHA’s efforts to expand planned and sustainable housing opportunities.
The agreement represents an initial step towards the proposed development, with further project implementation to follow the MoU.

