The government has allocated subsidized housing loans exceeding Rs5 billion to 1,845 individuals as part of the Prime Minister’s “Apna Ghar Programme,” officials informed a parliamentary committee on Friday. This initiative is designed to support the construction of up to 500,000 homes over the next four years through concessional mortgage financing.
During a briefing to the National Assembly Standing Committee on Finance, officials revealed that 25,304 applications have been submitted under the scheme, with 8,990 approvals granted so far. The total value of approved loans has surpassed Rs37 billion.
Senior representatives from the finance, housing, and law ministries provided detailed insights into the programme’s implementation framework and discussed proposed reforms in housing finance and foreclosure legislation. The Secretary of the Ministry of Housing and Works explained that the Apna Ghar Programme offers subsidized housing finance aimed at first-time homebuyers, with loans available up to Rs10 million.
These loans feature a fixed markup rate of 5 percent, a repayment tenure of 20 years, and a financing ratio of 90:10 between banks and borrowers. Officials emphasized that legal reforms in foreclosure and recovery laws are crucial to mitigating risks for banks, enhancing investor confidence, and fostering sustainable growth within the mortgage finance sector.
Lawmakers were informed that Pakistan’s housing finance sector remains underdeveloped, necessitating structural reforms, stronger legal enforcement, and a more supportive regulatory environment to encourage banks and financial institutions to increase mortgage lending. Committee members underscored the urgency of these reforms, highlighting that improved foreclosure and recovery laws are vital to expanding access to housing finance across the country.
