The power and Fuctions of the Authority have been laid down in section 4 of the PHA Act, 2005, reproduced below:

• Subject to the provisions of this Act and any rules made hereunder, the Authority may exercise such powers and take such measures as may be necessary for carrying out the purposes of this Act
• without prejudice to the generality of the foregoing sub section the Authority shall-

i. Facilitate provision of housing inputs, including land, finance, building materials through institutional and legal frame work and develop indigenous and effective approaches.
ii. Implement parameters of the4 national housing policy, coordinate and liaise with the federal Government District Governments, Tehsil and Town Municipal Administrations, concerned departments and Government Agencies.
iii. Identify state and other lands for developing low income and low cost housing schemes;
iv. Facilitate construction of multi story flats (Low cost housing) in collaboration with the District Governments and Tehsil and Town Municipal administrations by arraigning finances form the House Building Finance Corporation. Finance Institution and commercialized banks for developments.
v. Provide cost wise affordable, housing schemes especially for the low income group and families out of the Revolving Fund;
vi. Facilitate Public and private partnership or ventures in housing and development of recreational activities;
vii. Promote environment for friendly and standardized construction activities;
viii. Prepare guidelines, long term and short term plans for implementing the low cost housing schemes the low cost housing schemes and programmes in the North West Frontier province;
ix. Facilitate land availability through various innovative measures develop a comprehensive Land information system to cater for the planning and development requirements for a period of five to ten Years;
x. Mobilize resources and generate funds in order to provide finance for housing specially to the low income group;
xi. Develop land disposal systems which are unified, transparent and market oriented with open auction policy and exception for special needs;
xii. Develop packages in which prime state land occupied by katchi abady, shall be offered to the private developers for commercial use; provided they arrange finance up gradation or relocation of Katchi Abady.
xiii. Suggest measures to check growth of slums and Katchi abady, formulate resettlement and relocation plans.
xiv. Propose suitable amendments in land acquisition laws to make provisions for unified transparent and market oriented system of land acquisition;
xv. Formulate provincial land use policy, plan and prepare regional development plans ( inter District spatial Planning Master Plans) for an integrated, coordinated and systematic planning to ensure orderly growth and development of physical infrastructure such as highways, railways, industrial zones conservation of forest reserves and provision of electricity, telephone, sui gas, etc;
xvi. Plan a comprehensive programme for the development of satellite, intermediate, secondary and industrial towns to reduce migration and drift to big settlements;
xvii. Develop Geographic information System for efficient land documentation and information related to housing and town planning;
xviii. Provide technical assistance to the District Governments and Tehsil and Town Municipal Administrations towards capacity building in all matters related to housing and town planning;
xix. Coordinate with Federal Government District Government and Tehsil and Town Municipal Administrations for implementing the development plans and programmes pertaining to housing and town planning;
xx. Assist Government Agency to plan/execute Government servants housing scheme etc in the areas of low cost housing;
xxi. Formulate policy parameters to ensure liberalization in the existing regulatory measures, and to streamline the affairs of private housing schemes; and
xxii. Perform such other functions as may be assigned to the Authority from time to time by government.