Mera Ghar Mera Ashiana: SBP’s Affordable Finance Scheme

Pakistan’s housing sector has long carried a heavy weight; the demand for affordable homes continues to outstrip supply. With rapid urbanization, growing population pressures, and changing family structures, the need for housing has become more urgent than ever. While luxury projects have gained attention in major cities, what’s often overlooked is the equally pressing demand for smaller, affordable homes for middle- and lower-income families.

This is where initiatives like the “Mera Ghar – Mera Ashiana” Markup Subsidy and Risk Sharing Scheme, recently introduced by the State Bank of Pakistan (SBP), step in. The program isn’t just another policy announcement; it represents hope for countless households that aspire to move into their first-ever home.

The Current Housing Gap in Pakistan

Experts estimate that Pakistan faces a housing shortfall of over 10 million units, and the gap is only widening each year. A significant portion of this demand comes from families earning modest incomes who cannot access traditional housing finance. For them, even a 5-marla home or a compact apartment is a dream that often feels out of reach.

In cities like Karachi, Lahore, and Islamabad, property values have risen steadily, making ownership nearly impossible for first-time buyers without financial assistance. Even smaller towns are witnessing a spike in demand, further highlighting the need for affordable and accessible solutions.

What the SBP’s Scheme Offers

The Mera Ghar – Mera Ashiana scheme directly addresses these challenges by making home financing easier, cheaper, and less risky. Here’s what it brings to the table:

Eligibility: First-time homeowners with a valid CNIC, ensuring genuine end-users benefit.
Scope: Covers purchase of homes/flats, construction on owned land, or purchase of land plus construction.
Unit Size: Houses up to 5 marla or apartments up to 1,360 sq. ft.
Loan Amount:
- Tier 1: Up to PKR 2 million
- Tier 2: PKR 2 million to PKR 3.5 million
Loan Tenure: Up to 20 years, with subsidized markup for 10 years.
Pricing:
- Tier 1: Fixed 5%
- Tier 2: Fixed 8%
Equity Requirement: Only 10% contribution from the buyer.
Risk Coverage: The State Bank covers 10% of the outstanding portfolio on a first-loss basis.

Banks, Islamic banks, microfinance institutions, and HBFCL have all been instructed to roll this scheme out, ensuring that individuals across the country can access it.

Why This Matters

For many Pakistani families, buying a home isn’t just about having four walls—it’s about security, dignity, and stability. A house is often the largest asset a family owns, a place where savings and memories grow together.

This scheme recognizes that reality. By reducing borrowing costs and lowering entry barriers, it makes it possible for people who have spent years renting or living in joint family setups to finally consider ownership.

Available Affordable Housing Projects

In recent years, several developers have also recognized the growing demand for smaller housing units. Many new projects now feature compact apartments, modest homes, and well-planned communities that align with the needs of middle-income families. These projects not only address affordability but also integrate essential amenities like schools, healthcare facilities, and public spaces.

Combined with the SBP scheme, such projects can become a turning point for housing accessibility in Pakistan. Families no longer need to dream indefinitely—they have pathways to actual ownership.

What More Needs to Be Done

While this scheme is a strong step forward, the journey is far from complete. Expanding awareness is crucial—many eligible people often remain unaware of such initiatives. Banks also need to streamline their processes so that financing doesn’t feel intimidating or out of reach.

Additionally, introducing more public-private partnerships can further boost supply in the affordable segment. Infrastructure improvements, digitization of land records, and urban planning reforms will also play a vital role in making housing more inclusive.

The Take Away

The introduction of the Mera Ghar – Mera Ashiana scheme reflects a growing recognition of Pakistan’s most urgent housing challenge: accessibility. By making finance affordable and secure, the program offers hope to millions of families who dream of stepping into a home they can truly call their own.

For Pakistan, bridging the housing gap isn’t just about numbers—it’s about creating opportunities, uplifting communities, and building a stronger future. And with initiatives like this, we are finally moving closer to that vision.