This paper reviews the rural housing reconstruction implemented by the government of Pakistan in the aftermath of the devastating earthquake that struck northern Pakistan on October 8, 2005. This government reconstruction programme, in the form of cash grants distributed in several tranches conditional upon the meeting of earthquake-resistant construction parameters, makes for an interesting case study on post-disaster reconstruction policy formation and implementation. Further, lessons learnt from the successes and failures of this programme may inform effective development and service delivery in developing economies of the region, such as Pakistan.