PM Orders Banks to Expand Financing for Apna Ghar Housing Scheme

ISLAMABAD: Prime Minister Shehbaz Sharif has directed public and private banks to expand financing for the federal government's Apna Ghar Scheme, placing affordable home ownership among his administration's key social and economic priorities. The instructions were issued during a progress review meeting held in Islamabad on Wednesday.

The prime minister asked financial institutions to increase their participation so that more low- and middle-income families can obtain housing loans. He also directed officials responsible for the programme to accelerate implementation and reduce delays faced by eligible applicants seeking approval from participating banks.

Officials informed the meeting that banks had approved approximately Rs204 billion in financing under the housing initiative. However, only around Rs27 billion had been disbursed to borrowers so far, highlighting a sizeable difference between sanctioned loans and funds actually released for property purchases or construction.

Shehbaz described access to dignified and affordable housing as a central government responsibility and urged all institutions involved to use their available resources more effectively. He welcomed the monitoring arrangements established by the Ministry of Housing and the State Bank of Pakistan, which are conducting weekly reviews of financing and implementation progress.

The prime minister also ordered the preparation of a comprehensive strategy for model housing projects. The proposed approach is expected to bring government agencies, developers and lenders together to create housing options that meet affordability standards while remaining financially sustainable for participating institutions.

Under the broader Apna Ghar programme framework, first-time homeowners holding valid Pakistani identity documents can seek financing for purchasing or constructing a house, flat or apartment. The scheme provides loans of up to Rs10 million, with repayment periods extending to 20 years and a subsidised financing rate during the initial years.

The programme generally allows participating institutions to finance up to 90 per cent of an eligible property's cost, leaving the applicant responsible for the remaining contribution. Processing charges and early repayment penalties have also been removed under the scheme's stated terms, reducing some of the additional expenses commonly associated with long-term housing finance.

Pakistan's formal mortgage market has historically remained beyond the reach of many salaried and self-employed households because of high property prices, demanding documentation requirements and elevated borrowing costs. Expanding subsidised lending could help families move from rented accommodation to ownership, while also supporting construction, building materials, labour and related industries.

The latest instructions place greater responsibility on banks to convert approved financing into completed disbursements and functioning housing projects. Authorities are expected to continue weekly monitoring, identify obstacles delaying applicants and present a model-project strategy as the government seeks faster and wider delivery of affordable homes.