Rebuttal to ‘Half a roof no Roof at all’—I

This is apropos an article published by Business Recorder under the title “Half a Roof No Roof at All” written by Hanzla Jalil, a research economist at PIDE. The following is the first part of a two-part rebuttal to the article. This article presents an incomplete and somewhat misleading view of the Apni Chat Apna Ghar (ACAG) scheme.

While it raises certain concerns, it fails to recognize the scale, genuine progress, and impact of this landmark housing initiative. By overlooking key facts — such as strong demand, structured disbursement processes, and the tangible on-ground results — the piece underestimates the success of the program and the difference it is already making in the lives of thousands of low- and middle-income families.

At its core, the Apni Chat Apna Ghar (ACAG) scheme is a pro-poor, inclusive housing finance initiative designed to extend the dream of homeownership to low- and middle-income families traditionally excluded from formal banking channels. Its true objective is not merely to provide loans but to enable dignity, social inclusion, and long-term asset building.

The programme aims to reduce the urban housing gap by offering affordable, interest-free microloans that empower families to build modest yet secure homes through their own effort and participation. By promoting incremental construction, supporting local economies, and encouraging responsible financial behavior, the scheme transforms housing from an unattainable aspiration into a real, sustainable pathway toward stability and self-reliance.

Any critical analysis needs to be focused on the achievements or otherwise of the desired objectives of the scheme.

1. Overwhelming demand proves the scheme’s viability

The article claims the programme is impractical. Yet, the fact that 86,000 loans have already been booked decisively proves otherwise. These are not hypothetical applications — they represent real households, verified, geotagged, and disbursed through proper banking and verification procedures.

The loan applications are processed via a dedicated ACAG web portal, where eligible borrowers submit their credentials transparently. Since the programme’s inception in October 2024, over 830,000 applications have been received — a figure that demonstrates not only the public’s trust but also the unmet need for affordable housing finance.

If the scheme were fundamentally flawed, demand of this magnitude would never have materialized. The massive uptake is the strongest indicator of its necessity, relevance, and success.

Moreover, approximately 20,000 beneficiaries have already completed their houses and shifted into their new homes — clear evidence that the scheme delivers complete, livable structures rather than the “half roofs”.

2. Loans are disbursed only after rigorous checks

Contrary to the insinuation that funds are loosely handed out, every single loan under the scheme is subject to stringent verification by Punjab Housing and Town Planning Agency (PHATA). This includes confirmation that the applicant is a non-homeowner, a permanent resident of Punjab, possesses a clean credit history (as per SBP records), and is free of any criminal charges.

Further, disbursement is carried out by partner Microfinance Institutions (MFIs) — Akhuwat Islamic Microfinance (AIM), National Rural Support Program (NRSP), and Rural Community Development Program (RCDP) — through a rigorous multi-step process. Borrower credentials, land titles, and building plans are vetted before approval, and funds are released in two tranches of PKR 750,000 each, tied to geotagged and verified construction milestones. This eliminates the risk of misuse or abandonment.

The ACAG scheme operates under a digitally transparent and auditable system, where every application, verification, and disbursement is traceable. Partner MFIs adhere to uniform credit protocols, and real-time monitoring ensures accountability. This level of procedural discipline eliminates leakages, safeguards public funds, and has resulted in a 100% recovery rate — a benchmark achievement for any public financing programme.

(To be continued tomorrow)

The Bank of Punjab (Lahore)

Copyright Business Recorder, 2025