Under the Prime Minister Apna Ghar Programme, loans worth more than Rs5 billion have been disbursed to 1,845 individuals so far, officials informed a parliamentary panel.
The update was shared during a meeting of the National Assembly Standing Committee on Finance, where members were briefed on the implementation status of the subsidised housing finance initiative.
Officials told the committee that in the coming four years, the government plans to facilitate the construction of 500,000 homes through subsidised loans aimed at first-time homebuyers.
According to details presented, 25,304 applications have been received so far under the scheme, out of which 8,990 have been approved. The total value of approved loans stands at over Rs37 billion.
The committee was briefed by the Secretary Finance, Secretary Housing and Works, and Secretary Law and Justice on the programme’s implementation framework as well as proposed reforms in housing finance and foreclosure laws.
Officials from the Ministry of Housing and Works described the initiative as a subsidised housing finance scheme under which eligible applicants can receive loans of up to Rs10 million for their first home purchase. The loans carry a 5 per cent markup rate, with a repayment period of 20 years and a financing ratio of 90:10.
It was further explained that legal reforms in foreclosure and recovery mechanisms are considered essential to reduce risks for banks, improve investor confidence, and support sustainable growth in the mortgage finance sector.
Committee members noted that Pakistan’s housing finance sector remains underdeveloped and stressed the need for structural reforms, improved recovery laws, and a more enabling regulatory environment to encourage greater participation of financial institutions in mortgage lending.