Islamabad, July 26, 2025: The Economic Coordination Committee (ECC) of the Cabinet has given a go-ahead to a markup subsidy scheme worth Rs. 72 billion, aiming to help build and buy 50,000 low-cost homes during the current financial year.
The housing finance scheme has been shaped with help from the Ministry of Finance, State Bank of Pakistan (SBP), and Ministry of Planning. It is meant for first-time homebuyers who have valid CNICs and don’t already own a house. They will now be able to get housing loans for a long term, going up to 20 years.
With this scheme, borrowers can take loans on fixed low interest rates — 5% for loans up to Rs2 million and 8% for loans between Rs. 2 million and Rs. 3.5 million — “for the first 10 years.” After this time, usual market rates will be applied. This scheme is only for houses up to 5 Marla or flats with size of up to 1,360 square feet. The loan-to-equity ratio will be 90:10, which means 90% loan and 10% equity, and there will be no extra fee for processing or early payments.
A risk-sharing part of 10% is also added for banks and financial firms like commercial banks, Islamic banks, microfinance banks, and the House Building Finance Corporation (HBFC).
The full cost of this scheme, which is spread over 20 years, is said to be Rs71.98 billion. This includes Rs61.98 billion for the interest support and Rs. 10 billion for risk cover. For the upcoming fiscal year 2025-26, a total of Rs3.93 billion will be needed.
The aim of this step is to help low-income families in getting houses and also to bring in private sector by reducing the financial risk. The SBP has shown support to the design of the scheme so that fair access is given and rules are followed properly.
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The Pakistan Housing Authority Foundation (PHAF) will be the one to carry out the scheme on behalf of the government. There will be a different budget given to run and promote the scheme. The final amount will be decided later by PHAF along with the Ministry of Information.
To bring more public attention, the Ministry has suggested giving the scheme a new name. The titles under consideration are:
- Apna Ghar – Roshan Mustaqbil”
- Mera Khwab – Mera Aashiyana”
- Mera Ghar – Meri Jannat”
The ECC meeting, which was led by Finance Minister Senator Muhammad Aurangzeb, also talked about other important matters like industrial development, green policies, skills training, and some problems related to the telecom sector.
