Pakistan’s housing finance sector is set to expand after the federal government approved changes to the Prime Minister’s Apna Ghar Programme. The decision follows recommendations from the Securities and Exchange Commission of Pakistan (SECP). Moreover, the move allows non-bank financial institutions to participate alongside commercial banks.
The initiative aims to improve access to affordable housing finance for low- and middle-income families. Consequently, more citizens will have opportunities to secure financing for home ownership.
NBFCs Allowed to Offer Home Financing
Under the revised framework, Non-Banking Finance Companies (NBFCs) can provide home loans of up to Rs 10 million. Meanwhile, microfinance institutions will be allowed to offer housing loans of up to Rs 5 million.
According to the SECP, the expanded programme will also benefit people without traditional bank accounts. Therefore, eligible applicants can access housing finance through simplified criteria and more accessible lending channels.
Borrowers will continue receiving subsidised financing under the programme. They will pay a fixed five percent markup for the first 10 years. As a result, home ownership is expected to become more affordable for thousands of Pakistani families.
Digital Reach to Improve Housing Access
The SECP said NBFCs have extensive digital networks and a strong presence in remote and underserved regions. Consequently, the programme can reach communities that previously lacked access to formal banking services.
To support implementation, the regulator has introduced a dedicated housing finance framework for NBFCs. The framework outlines prudential guidelines, lending standards, and compliance requirements. Additionally, it establishes operational rules for participating institutions.
The commission also confirmed that NBFCs may collaborate with commercial banks and other financial institutions. Therefore, they can mobilise additional funding and further expand housing finance under the Prime Minister’s Apna Ghar Programme.
