Pakistan's PM Shahbaz launches 'Apna Ghar Scheme' for low-income citizens

Prime Minister Shahbaz Sharif has launched a landmark five-year Rs321 billion housing programme, aimed at funding the construction of 500,000 homes nationwide, with a vision to provide affordable shelter for low-income citizens, lacking the financial means to build their own houses.

A loan of up to Rs 10 million will be given for 20 years for house purchase. An application for taking a loan will have to be submitted online. Final approval will be given in a month.

A 10 marla plot or a 10 marla built house can be purchased with the loan amount. 90 percent financing will be done under the government scheme and 10 percent individually. There will be no fee or prepayment requirement to get a loan.

A loan will be available from an Islamic and commercial bank, microfinance or house building finance company. A loan of up to Rs 2.5m, 5m, 7.5m or Rs 10 million can be obtained.

There will be a fixed mark-up of 5 per cent in the first 10 years, and a normal mark-up for the next 10 years. Those taking a loan of 2.5m will have to pay a monthly installment of Rs 16,499. People taking a loan of Rs5 million will pay a monthly installment of Rs 32,997.

Under the scheme, the monthly installment of Rs7.5 million borrowers will be Rs49,497. A monthly installment of Rs65,996 will have to be paid on a loan of Rs10 million. It has been made mandatory for CNIC holders to not be in debt in advance to take a loan. State Bank and Pakistan Housing Authority Foundation will monitor the project.

Addressing the programme’s launch ceremony of Wazir-e-Azam Apna Ghar Programme in Islamabad on Thursday, Shahbaz said that besides enabling people to own a house, the initiative will also act as a powerful economic multiplier to boost significant industrial growth and create jobs for a diverse workforce, ranging from manual labourers to engineers.

"No programme is quite as dear to me as this, for it holds the promise of revitalising our industrial and commercial sectors while paving the way for economic prosperity … This landmark programme is the culmination of extensive deliberations and tireless effort, having successfully overcome a myriad of complex challenges,” Shahbaz told the ceremony attended by Deputy Prime Minister and Foreign Minister Ishaq Dar, Housing and Works Minister Mian Riaz Hussain Pirzada, other federal ministers, banking professionals, representatives from the construction industry, and the beneficiaries of the programme.

Shahbaz Sharif addresses the launch ceremony of the "Apna Ghar" housing loan programme in Islamabad. Photo / X

He described the "Apna Ghar” initiative as a sacred obligation of any government, intended to support the needy who have long been deprived of the security of homeownership.

Shahbaz, who earlier pushed the button to launch the initiative and distributed cheques of loans among the beneficiaries, sanctioned by different banks, said that the programme was a reflection of Ashiana Housing Scheme he had launched while being chief minister of Punjab.

 He told the gathering that the programme was not confined to Islamabad as it would cater to the needs of all four provinces, Azad Jammu and Kashmir (AJK), and Gilgit-Baltistan (GB).

Explaining the contours of the programme, he said that for the first year, the government has set a target to fund 50,000 houses for which an amount of Rs321 billion had been earmarked. Over the five years, the government would finance 500,000 housing units supported by an allocation of Rs3.2 trillion. He said that the programme featured a 20-year repayment timeline, with a 5% markup for the first ten years, after which the market rate would apply

 Shahbaz extended his gratitude to the Finance Minister Muhammad Aurangzeb and the Governor of the State Bank for their cooperation in finalising this financing, besides expressing gratitude to Housing Minister Mian Riaz Hussain Pirzada and his team for helping the formulation of the programme.

 He announced to personally review the project’s progress on a monthly basis to address any shortcomings and ensure timely payments.

 In a clear message to the banking sector, he said that the banks leading the way in serving the common man through the housing programme would be honoured with national awards on Aug.14. However, those demonstrating laxity to the plight of the homeless should not expect "anything good” from him.

 Earlier, in his address, Housing and Works Minister Hussain Pirzada credited the relevant federal secretaries for their instrumental role in bringing this project to fruition. He said that the initiative followed the formation of a dedicated task force and that a survey revealed a staggering shortage of 10 million housing units across the country.

 Reflecting on the ministry’s efforts to align with the prime minister’s vision, the minister underscored the significance of implementing bold administrative reforms, including the winding up of the Public Works Department.