The federal government has allocated Rs71 billion in subsidies for the Prime Minister’s Apna Ghar Scheme in the FY2026-27 budget, aiming to finance 150,000 homes by June 2027. The State Bank of Pakistan (SBP) said the initiative is designed to make home financing more affordable for low and middle-income families while addressing the country’s housing shortage.
Speaking at a media briefing on housing finance, SBP Executive Director of the Islamic Finance Group, Ghulam Muhammad Abbasi, said the programme has progressed more slowly than initially expected. However, he added that the SBP and participating banks are working to accelerate loan approvals and disbursements to achieve the government’s target by the end of FY2026-27.
According to the SBP, banks have disbursed Rs27 billion in housing loans since the launch of the scheme. As of June 30, 2026, total outstanding housing finance stood at Rs293 billion, benefiting 65,414 borrowers. Commercial banks accounted for Rs262 billion of the financing, while microfinance banks provided Rs36.1 billion.
The programme has received approximately 107,000 applications so far. Out of these, around 27,000 applications have been approved, while 13,000 were rejected. The remaining applications are currently under review. Abbasi said most rejections resulted from loan defaults, weak credit histories or applicants withdrawing their requests during the approval process.
Under the Apna Ghar Scheme, eligible applicants can obtain financing of up to Rs10 million to purchase a house, apartment or plot, or to construct a home on land they already own. The scheme covers houses of up to 250 square yards and apartments measuring up to 1,500 square feet.
Borrowers can repay the financing over a period of up to 20 years. During the first 10 years, they will pay a fixed markup rate of 5 percent, making the financing more affordable compared to conventional housing loans.
Abbasi said holders of CNICs, NICOPs and Pakistan Origin Cards (POCs) are eligible to apply. While salaried individuals can submit salary slips, freelancers and people working in the informal sector may use bank statements, electricity bills and mobile top-up records to demonstrate their repayment capacity.
The SBP has also launched an online application portal and announced that a dedicated helpline will be introduced soon to assist applicants. Banks have been instructed not to charge any processing fee under the scheme and to decide on loan applications within 15 days. Borrowers will also have the option to repay their loans early without facing any prepayment penalty.
Also read: Apni Chhat Apna Ghar: Punjab Govt Begins Cheque Distribution
