The federal government is set to unveil an affordable housing loan scheme in the upcoming budget, targeting 3-5 marla homes with subsidized interest rates and 10–12-year repayment terms. The Prime Minister’s Office is also considering extending the subsidy to 10-marla units for first-time homebuilders, though this could raise concerns with the IMF over fiscal impact.
The estimated cost of subsidizing 3–5 marla units is Rs. 50–70 billion, with costs increasing significantly if 10-marla homes are included.
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The banking sector has expressed concerns over legal obstacles in mortgage recovery, despite recent reforms. With around 30 million housing units across Pakistan, an accurate housing shortfall remains unclear.
A UK-style financing model for public sector employees is also under consideration, as current housing loans are inadequate for even basic plots in major cities.
