Islamabad: Officials have informed a parliamentary committee that the Prime Minister Apna Ghar Programme has received more than 25,000 applications as demand for subsidised housing finance continues to grow in Pakistan.
The scheme, aimed at promoting home ownership among low and middle-income groups, was approved in August 2025 and later revised in March 2026. It offers financing of up to PKR 10 million at a fixed markup rate of 5%, with repayment terms extending up to 20 years under a 90:10 financing structure.
According to data shared with lawmakers, the programme had received 25,304 applications as of April 30, 2026. Out of these, 8,990 applications have been approved, amounting to PKR 37.154 billion in sanctioned financing. Disbursements have reached PKR 5.071 billion across 1,845 beneficiaries so far.
Officials also briefed the committee that Pakistan’s housing finance sector remains significantly underdeveloped. Mortgage credit currently contributes only 0.3% to GDP and accounts for just 0.56% of total private sector lending, highlighting structural weaknesses in the country’s housing finance ecosystem.
To address this gap, the government has set an ambitious target of financing 500,000 housing units over the next four years, requiring an estimated PKR 3.2 trillion. However, the Finance Secretary informed lawmakers that existing fiscal space is limited, suggesting that broader fiscal adjustments and possible rationalisation of development spending may be required to support the target.
Members of the committee expressed concerns over the country’s institutional capacity to meet such an extensive housing target, pointing to limited mortgage market depth and weak outreach to low-income and rural populations.
The panel recommended simplifying loan procedures, improving eligibility criteria, and increasing subsidy support to make housing finance more accessible.
Officials also noted that the revised legal framework under consideration introduces a dedicated housing finance section and allows banks to reschedule, restructure, or settle loans at any stage before property sale. The reforms are designed to complement the extended 90-day foreclosure framework, aiming to balance recovery efficiency with borrower protections.
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