ISLAMABAD: The government is working on a low-interest housing scheme for 3 and 5 marla homes in the upcoming budget, in response to Pakistan’s growing housing shortage. The proposed package will include interest rate subsidies and a repayment period of 10 to 12 years.
Officials say the country is currently facing a shortage of about 14 million housing units. To tackle this, the government is working on making it easier for low-income families to build small houses. The Prime Minister’s Office is also reviewing the possibility of extending the subsidy to 10 marla homes for first-time home builders. However, the IMF may raise objections, especially over the high cost.
The estimated annual cost of subsidizing 3 and 5 marla home loans is expected to be around Rs 50 to 70 billion. If 10 marla homes are included, this cost could increase significantly.
Bank interest rates have long been a major hurdle for ordinary citizens seeking home loans. Due to high markup rates and strict repayment conditions, many people struggle to afford mortgage payments or are unable to qualify for loans altogether. Hopes are high that this proposed scheme will bring much-needed relief and allow more people from middle- and low-income groups to finally own their own homes.
Meanwhile, the banking sector has reported difficulties in mortgage financing. Banks have complained about legal hurdles, including court-issued stay orders during loan recovery. Although some legal reforms have been introduced, further steps may be needed to strengthen mortgage financing in Pakistan.
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During recent meetings on affordable housing, nearly all bank representatives highlighted these issues. The Ministry of Law is now being consulted to remove such barriers before scaling up the housing and construction sectors.
According to the latest census, Pakistan has about 30 million mixed (kacha/pucca) housing units. However, experts believe there is no precise data available to measure the shortage of quality housing in the country.
It is worth mentioning that last month, Punjab Chief Minister Maryam Nawaz Sharif launched the ‘Apni Zameen, Apna Ghar’ housing initiative, under which free 3 marla plots will be given to homeless families in Punjab. The project’s online portal (azag.punjab.gov.pk) allows people to apply for free plots.
In the first phase, 2,000 plots will be distributed across 19 districts through 23 housing schemes. Selected applicants will also receive easy loans for home construction. The CM stated that this initiative is close to her heart and reflects former Prime Minister Nawaz Sharif’s vision of providing every homeless person with a roof over their head.
