Shelter is the basic human need like food and clothing. A welfare State committed to the development of society and betterment of its people must give high priority to providing basic necessities to its citizens. In this endeavour, importance of decent housing and proper residential environment cannot be over-emphasized. Direct and indirect contribution of housing programmes to the national economy and positive co-relationship between housing and productivity has long been recognized universally.
The Federal Government took a major initiative to provide shelter to its employees by launching a self-financing housing scheme for them on ownership basis in Islamabad in 1988. Being the first venture of its kind, there was tremendous response from the Federal Government employees who welcomed and deeply appreciated the scheme. The second phase of the Housing Scheme was launched in March 1992 which provided a major breakthrough to overcome the acute shortage of housing in the Federal Capital. Subsequently, similar housing schemes were launched in Karachi and Peshawar to meet the growing demand of the Federal Government employees.
The Federal Government Employees Housing Foundation was set up in March 1990, and registered as a company limited by guarantee under the Companies Ordinance, 1984. It was entrusted with the task of implementing the self-financing housing schemes on ownership basis for Federal Government employees. Within a span of five years, about 16000 houses were constructed under the said scheme in Islamabad and about 4000 plots were allotted to the successful applicants with an option to undertake construction under their own arrangements.