LAHORE: Housing finance worth Rs351.30 billion has been approved under the Prime Minister’s Apna Ghar Programme, Adviser to the Ministry of Finance Khurram Shahzad said, describing it as significant progress in the government’s push to expand home financing.
In a statement, the adviser said 60,349 cases for affordable houses had been approved so far, while loans worth Rs51.13 billion had been disbursed under the programme.
According to Khurram Shahzad, housing loans have so far been provided to 9,717 families. The approval rate under the housing finance programme has risen to 38.5 percent, he said.
The average loan size under the Apna Ghar Programme is Rs5.26 million. Approvals of housing finance rose by more than 12 percent in a single week, the adviser said.
Eligible families are being offered housing finance of up to Rs10 million, according to the Finance Ministry adviser.
The figures point to a sizeable gap between approvals and disbursements. The Rs51.13 billion disbursed amounts to roughly 14.6 percent of the Rs351.30 billion approved, and the 9,717 families who have received loans represent about 16 percent of the 60,349 approved cases.
The disbursement numbers are internally consistent with the average loan size quoted: Rs51.13 billion spread across 9,717 families works out to about Rs5.26 million per family. Such gaps are common in housing schemes, since loans are typically released in stages as buyers complete documentation, title verification and, in the case of construction, building milestones.
The 38.5 percent approval rate indicates that a majority of applications have not been approved so far, whether because they are still under review or did not meet eligibility and credit criteria. The government has not detailed the breakdown.
Pakistan’s mortgage market is among the smallest in the region relative to the size of its economy, and home ownership for salaried and lower-income families has long been out of reach because of high property prices, limited long-term financing and difficulties in documenting income. Official and industry estimates commonly put the country’s housing shortage at around 10 million units.
Construction is also closely linked to dozens of allied industries, from cement and steel to paint, glass and electrical goods, which is why governments have repeatedly used housing schemes as a lever to stimulate economic activity and employment.
The federal Apna Ghar Programme runs alongside provincial initiatives. In Punjab, the separate Apni Chhat Apna Ghar scheme has disbursed Rs243 billion in interest-free loans, according to the provincial government. Applicants should check the eligibility conditions, loan limits and repayment terms of each scheme separately, as they differ.
Housing finance applications generally require a valid CNIC, proof of income, clear title documents for the property and, for construction loans, approved building plans. Borrowers are advised to confirm the markup rate (5% fixed markup for first 10 years, remaining 10 years at market rate), tenure Up to 20 years, down payment only 10% and any subsidy conditions with their bank before committing, and to factor in costs such as property registration, valuation and insurance, which are usually not covered by the loan.
The pace of disbursement over the coming months will be the clearest indicator of whether the programme is translating approvals into actual homes. The adviser’s figures show approvals accelerating; the next test is whether banks can convert those approvals into disbursed loans at a similar pace, particularly as the government manages tight fiscal conditions, reflected in its recent early repayment of Rs1,200 billion in debt.
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