Housing finance hits Rs293bn as 65,414 Pakistanis become homeowners in FY26

Pakistan's housing finance portfolio has crossed Rs293 billion, benefiting 65,414 borrowers as of June 30, 2026, with commercial banks contributing Rs262 billion and microfinance banks Rs36.1 billion, the State Bank of Pakistan (SBP) official said.

Of this, banks have disbursed Rs27 billion in loans under the Prime Minister's Apna Ghar Scheme alone since its launch, SBP officials said while briefing media on housing finance.

Ghulam Muhammad Abbasi, Executive Director of SBP's Islamic Finance Group, said the federal government has allocated Rs71 billion in subsidies for the scheme in the FY27 budget, with a target to finance 150,000 homes by June 2027. He said the scheme aims to address Pakistan's growing housing shortage by offering affordable financing to low- and middle-income families.

Abbasi said the scheme has received around 107,000 applications to date, of which 27,000 have been approved and 13,000 rejected, while the remainder are under process. He attributed rejections mainly to loan defaults, weak credit histories, and applicants withdrawing during the approval process.

He acknowledged that the scheme's progress has been slower than expected, but said the SBP and participating banks are working to accelerate disbursements to meet the FY27 target. 

The Rs71 billion subsidy allocated in the budget, he said, reflects the government's commitment to promoting affordable home ownership, and expressed confidence that this support, combined with banks' efforts, would help achieve the 150,000-home target.

Abbasi noted that Pakistan currently faces a housing shortage of 10 million units, growing by roughly 350,000 units annually. He said banking-sector support could significantly expand affordable housing finance and help more families become homeowners over the coming year.

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

Participating banks will offer financing up to Rs10 million with a 20-year repayment period. Borrowers will pay a fixed markup of 5 percent for the first 10 years.

An online application portal has already been launched, and a dedicated helpline for housing finance queries will follow soon, Abbasi said. SBP has directed banks not to charge any processing fee under the scheme and to respond to applications within 15 days.

Salaried individuals can apply by submitting only a salary slip. Those in the informal sector or shop owners and freelancers can apply using bank account statements, electricity bills, mobile top-up records, or other alternative financial documents.

Abbasi added that the scheme also allows early loan repayment, letting borrowers settle their outstanding loan in full before maturity without any prepayment penalty.