The dream of owning a home has moved closer for thousands of Pakistanis as Prime Minister Shehbaz Sharif officially launched the Prime Minister’s Apna Ghar Scheme in Islamabad.
Under the program, citizens will be able to apply online for housing loans of up to Rs10 million, repayable over 20 years, with relaxed housing finance rules and faster loan approvals.
Deputy Prime Minister Ishaq Dar, federal ministers and senior officials attended the event. Federal Minister for Communications Abdul Aleem Khan and Federal Minister for Housing Riaz Hussain Pirzada were also present.
Cheques were distributed among successful applicants of the first phase during the ceremony.
Loans up to Rs10m offered
Under the scheme, citizens will be able to get home loans of up to Rs10 million, on easy installments. The loan will be available for a long period of 20 years.
Applicants can use the loan amount to purchase a 10-marla plot, buy a 10-marla built house, or build a house on land up to 10-marla.
The government will provide 90% financing for the purchase or construction of a house under the Apna Ghar program. Applicants will have to pay only 10% of the amount individually.
The loan facility will be available through Islamic banks, commercial banks, microfinance institutions and house building finance companies.
The markup on loans under the scheme will remain fixed at 5% for the first 10 years. For the next 10 years, normal or market-based markup will apply.
Prime Minister Shehbaz Sharif said the loan process would be made very easy for citizens.
Monthly installments announced
The government has also shared the expected monthly installments for different loan amounts. A person taking a loan of Rs2.5 million will pay a monthly installment of Rs16,499.
For a loan of Rs5 million, the monthly installment will be Rs32,997. Those taking a loan of Rs7.5 million will pay Rs49,497 per month. For the maximum loan amount of Rs10 million, the monthly installment will be Rs65,996.
Interested citizens will have to apply online through the Ministry of Finance portal. House building finance companies and banks have been directed to complete loan approval within 15 days.
Final approval will be granted within one month after the application is submitted.
Eligibility for applicants
Applicants must have a valid Pakistani computerized national identity card. They must also not already be indebted to any bank.
The condition of lending according to household income has been implemented to make the process more responsible and affordable. Housing finance rules have also been relaxed to make it easier for citizens to qualify for loans.
No fee or prepayment will be required to obtain a loan under the Prime Minister’s Apna Ghar Scheme. Lending institutions will be allowed to conduct their own valuation for properties worth up to Rs5 million.
For properties worth more than Rs5 million, valuation by an approved valuer will be mandatory.
Banks and house building finance companies have been ordered to complete approvals within 15 days. Prime Minister Shehbaz Sharif said banks that take the lead in supporting the scheme would be appreciated.
He said such banks would be given national awards on August 14.
The prime minister also warned that banks that step back from their responsibility under the law should not expect favorable treatment.
The State Bank of Pakistan and the Pakistan Housing Authority Foundation will monitor the project. The monitoring mechanism is aimed at ensuring transparency, timely processing and smooth implementation of the housing finance program.
Pakistan faces shortage of houses
Federal Minister for Housing Riaz Hussain Pirzada addressed the ceremony and said a task force was formed in 2024 on the prime minister’s instructions. He said the Housing and Works Department complied with the prime minister’s orders.
Pirzada said surveys had shown a shortage of one crore houses in Pakistan, making it necessary to build more homes. He added that meetings were held almost every month and every week for a year to prepare the scheme.
PM Shehbaz calls ceremony memorable
Addressing the ceremony, Prime Minister Shehbaz Sharif congratulated successful applicants who received home loans. He said Pakistan has a population of 240 million, but a large number of people are still deprived of their own roof.
The prime minister called the ceremony memorable for himself and for the people attending it. He said the scheme had been prepared after hard work and was not limited to any particular area.
Scheme covers all provinces, GB, Kashmir
Prime Minister Shehbaz Sharif said the Apna Ghar Scheme is for people across Pakistan. He said citizens from all four provinces, Gilgit-Baltistan and Azad Kashmir would be able to benefit from the program.
The prime minister said the scheme reflects the spirit of the Ashiana Scheme of Punjab, where homes were provided to citizens and keys were handed over to successful beneficiaries.
The prime minister announced that the target for the first year of the scheme is 50,000 houses. He said Rs321 billion has been allocated for financing under the program in the first phase.
Shehbaz said the government’s target is to build 500,000 houses over the next four years. He also said the overall financing volume of the scheme is Rs3.2 trillion.
The PM said he would personally review the progress of the Apna Ghar Scheme. He said the project is extremely important for millions of Pakistanis who want to own a home.
He added that the scheme would also support industry, commerce and economic activity by opening new doors of prosperity.
