Key Takeaways
- The State Bank of Pakistan has directed banks to accept applications for the Prime Minister’s subsidised housing scheme from individuals aged up to 65 years.
- Over 107,000 applications have been received since March 2025, with nearly 80% submitted after September 2025 when the scheme was revised.
- The government has allocated Rs71 billion for subsidising loans in the ongoing fiscal year FY27.
The State Bank of Pakistan (SBP) has directed commercial and microfinance banks to accept applications from individuals aged up to 65 years for the Prime Minister’s subsidised housing scheme. This move aims to address the significant shortfall in housing units, estimated at over 10 million across the country.
Ghulam Muhammad Abbasi, Executive Director of the Islamic Finance Group at SBP, spoke at a workshop on the Prime Minister’s housing scheme titled ‘Wazir-e-Adam Apna Ghar Program – Ghar Ho Tu Apna.’ He highlighted that no profession has been marked as ineligible for the scheme. Journalists, lawyers, judges, policy and army men are all eligible to participate in the scheme.
The scheme is open to overseas Pakistanis as well, providing a pathway for those living abroad to contribute to their families’ housing needs. Abbasi noted that a maximum of four people can apply together for one loan to meet repayment conditions. He also mentioned that aging individuals can partner with employed family members who earn some money.
The scheme targets the disbursement of 150,000 housing loans in the current fiscal year 2026-27. As of June 30, 2026, banks had received a total of 107,000 applications, with nearly 80% submitted after September 2025 when the scheme was revised to increase the maximum loan amount to Rs10 million and offer a subsidised interest rate of 5% for the first 10 years.
Out of the received applications, subsidised housing finance loans have been approved for over 27,000 applicants and rejected 13,000. Banks have disbursed over 6,000 loans worth an average size of Rs4.8 million, totaling Rs26 billion under the scheme as of June 30, 2026.
As of June 30, 2026, banks had outstanding housing finance loans of Rs293 billion extended to 65,414 borrowers, translating into an average loan size of about Rs4.5 million. Abbasi informed that some 70-80% of the applications are being submitted online and expects this number to increase once a dedicated online portal is launched soon.
The government has allocated Rs71 billion for subsidising loans in the ongoing fiscal year FY27, aiming to support more applicants and ensure the scheme’s sustainability. Abbasi stated that monthly loan repayments would be capped at 65% of a borrower’s salary, with many applicants believed to have additional sources of income besides their formal salaries.
