Pakistan Housing Finance Portfolio Crosses Rs293 Billion

Pakistan’s housing finance portfolio has exceeded Rs293 billion, benefiting 65,414 borrowers as of June 30, 2026. According to State Bank of Pakistan (SBP) officials, commercial banks contributed Rs262 billion, while microfinance banks accounted for Rs36.1 billion.

Officials also revealed that banks have disbursed Rs27 billion in financing under the Prime Minister’s Apna Ghar Scheme since its launch.

Speaking during a media briefing on housing finance, Ghulam Muhammad Abbasi, Executive Director of the SBP’s Islamic Finance Group, said the federal government has allocated Rs71 billion in subsidies for the scheme in the FY2026–27 budget, aiming to finance 150,000 homes by June 2027. He said the initiative is designed to reduce Pakistan’s growing housing shortage by providing affordable financing to low- and middle-income households.

Abbasi said the programme has so far received around 107,000 applications, of which 27,000 have been approved and 13,000 rejected, while the remaining applications are still under review. He said most rejections resulted from loan defaults, poor credit histories, or applicants withdrawing during the approval process.

He acknowledged that progress under the scheme has been slower than initially expected but said the SBP and participating banks are working to speed up loan disbursements to achieve the FY2026–27 target.

According to Abbasi, the Rs71 billion subsidy demonstrates the government’s commitment to expanding affordable home ownership, expressing confidence that the financial support, together with banks’ participation, will help meet the target of financing 150,000 homes.

He further noted that Pakistan currently faces a housing shortage of around 10 million units, with demand increasing by approximately 350,000 units every year. He said stronger participation from the banking sector could significantly improve access to affordable housing finance.

The scheme is open to holders of Computerized National Identity Cards (CNICs), National Identity Cards for Overseas Pakistanis (NICOPs), and Pakistan Origin Cards (POCs).

Eligible applicants can obtain financing of up to Rs10 million to purchase a house, apartment, or plot, or to construct a home on land they already own. The financing applies to houses of up to 250 square yards and apartments measuring up to 1,500 square feet.

Participating banks will provide loans of up to Rs10 million with a repayment period of 20 years, while borrowers will pay a fixed 5% markup during the first 10 years.

Abbasi said an online application portal is already operational, while a dedicated housing finance helpline will be launched soon. He added that the SBP has instructed banks not to charge processing fees and to respond to applications within 15 days.

Salaried individuals can apply by submitting a salary slip, while freelancers, shopkeepers, and people working in the informal sector may use bank statements, electricity bills, mobile top-up records, or other alternative financial documents to support their applications.

He also confirmed that borrowers will be allowed to repay their loans early without incurring any prepayment penalty.