Apna Ghar Scheme to finance 150,000 homes by June 2027

KARACHI: The State Bank of Pakistan (SBP) said that the federal government has allocated Rs71 billion in subsidies for the Prime Minister’s Apna Ghar Scheme in the FY27 budget, with a target to finance 150,000 homes by June 2027.

Speaking at a media briefing on housing finance, Ghulam Muhammad Abbasi Executive Director, Islamic Finance Group SBP said the Prime Minister housing scheme aims to address Pakistan’s growing housing shortage by providing affordable financing to low and middle-income families.

On the occasion, Noor Ahmad Director, ECD, Dr Muhammad Saleem Additional Director, State Bank, Khubaib Usmani and Saifullah Khan, Media & PR Division were also present.

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Abbasi said that although the Prime Minister’s Apna Ghar Scheme is progressing at a slower-than-expected pace, the State Bank and participating banks are working to accelerate disbursements, with a target of financing 150,000 homes by the end of FY2026-27.

Since the launch of the scheme, banks have disbursed Rs27 billion in housing loans. As of June 30, 2026, cumulative housing finance stood at Rs293 billion, benefiting 65,414 borrowers. Of the total financing, commercial banks provided Rs262 billion, while microfinance banks disbursed Rs36.1 billion, he informed.

He further informed that the Prime Minister’s Apna Ghar Scheme has received around 107,000 applications since its launch. Of these, 27,000 have been approved, 13,000 rejected, while the remaining applications are under processing. The primary reasons for rejection include loan defaults, weak credit histories, and applicants withdrawing their requests during the approval process, he added.

He said the federal government’s allocation of Rs71 billion in subsidy for the scheme in the FY27 budget demonstrates its strong commitment to promoting affordable home ownership.

He expressed confidence that the enhanced subsidy support, coupled with the banking sector’s efforts, would help accelerate housing finance and achieve the target of financing 150,000 homes by the end of FY27.

He said Pakistan currently faces a housing shortage of 10 million units, which is increasing by approximately 350,000 units annually, underscoring the need for affordable housing finance. However, he believed that the support of the banking sector would significantly expand affordable housing finance and help thousands more families become homeowners over the coming year.

Abbasi said holders of Computerized National Identity Cards (CNICs), National Identity Cards for Overseas Pakistanis (NICOPs), and Pakistan Origin Cards (POCs) are eligible to apply under the scheme.

Under the programme, applicants can obtain financing up to Rs10 million to purchase a constructed house, apartment, plot, or to build a house on an owned plot. Financing is available for houses of up to 250 square yards and apartments of up to 1,500 square feet.

Participating banks will provide financing of up to Rs10 million, with a repayment period of 20 years and borrowers will pay a fixed markup of 5 percent for the first 10 years, making home financing more affordable.

Abbasi said an online application portal has been launched to facilitate applicants, while a helpline to resolve the issues relate to housing finance will be launched very soon. He said that SBP has directed banks not to charge any processing fee under the scheme and respond to loan applications within 15 days.

He said salaried individuals can apply by submitting only their salary slip, while people working in shops or the informal sector like freelancers can have their applications processed using bank account statement, electricity bills, mobile top-up records, and other alternative financial documents.

A key feature of the scheme is the early loan repayment facility, which allows borrowers to repay their outstanding loan in full before maturity without incurring any prepayment penalty,” he added.

Copyright Business Recorder, 2026