Business Recorder
ISLAMABAD: The National Assembly Standing Committee on Finance Thursday recommended the government and the State Bank of Pakistan (SBP) to introduce simplified financing procedures, flexible eligibility criteria, and enhanced subsidy support for low-income and informal-sector households to improve accessibility and affordability of the Prime Minister Apna Ghar Program (PM-AGP). He was chairing the 25th meeting of the Standing Committee on Finance and Revenue held at Parliament House, Islamabad, where the Federal Secretaries of Finance, Housing & Works, and Law & Justice briefed the Members on the Prime Minister Apna Ghar Program (PM-AGP), its implementation framework, and proposed reforms relating to housing finance and foreclosure laws. The Chairman Standing Committee on Finance and Revenue Syed Naveed Qamar has underscored that affordable housing finance must genuinely serve deserving low-income families through transparent, accountable, and inclusive mechanisms. READ MORE: ECC clears housing ministry summary: Finance outreach for Apna Ghar will be scaled up He further stressed the urgent need for robust foreclosure and recovery laws to strengthen Pakistan’s underdeveloped mortgage finance sector and enhance the confidence of financial institutions in expanding long-term housing finance. The Secretary Ministry of Housing and Works in his presentation informed that the Prime Minister Apna Ghar Programme is a subsidized housing finance initiative aimed at enabling low and middle-income families to own homes while promoting economic activity and revitalizing the construction sector. Approved in August 2025 and revised in March 2026, the scheme offers financing of up to Rs. 10 million for first-time homeowners at a fixed markup rate of 5 percent, repayable over 20 years with a 90:10 financing ratio. As of 30 April 2026, 25,304 applications had been received, of which 8,990 applications involving Rs. 37.154 billion were approved, while Rs. 5.071 billion had been disbursed to 1,845 beneficiaries. The Committee was further informed that Pakistan’s housing finance sector remains underdeveloped, with mortgage financing contributing only 0.3 percent to GDP and 0.56 percent to total private sector credit. The Government has therefore set a target of financing 500,000 housing units over the next four years, requiring an estimated Rs. 3.2 trillion in financing. The Ministry emphasized that reforms in foreclosure and recovery laws are essential to reduce risks for banks, enhance investor confidence, and ensure sustainable growth of the mortgage finance sector. The Committee observed that Pakistan’s housing finance sector remains significantly underdeveloped and stressed the need for structural reforms, improved foreclosure and recovery laws, and a more conducive regulatory environment to encourage banks and financial institutions to expand mortgage lending. The Chair and Members of the Committee expressed concerns regarding the limited outreach of housing finance facilities to low-income and marginalized communities, particularly in rural and underserved areas. The Committee also questioned the preparedness and institutional capacity of banks and financial institutions to achieve the ambitious target of financing 500,000 housing units within four years, given the presently underdeveloped mortgage finance ecosystem in Pakistan. After detailed deliberations, the Committee recommended that the Government and the State Bank of Pakistan introduce simplified financing procedures, flexible eligibility criteria, and enhanced subsidy support for low-income and informal-sector households in order to improve accessibility and affordability of the scheme. The Committee further recommended that comprehensive reforms in foreclosure and recovery laws be undertaken on a priority basis to strengthen the confidence of financial institutions, reduce non-performing loans, and support the sustainable expansion of mortgage financing in Pakistan. The Secretary, Ministry of Law and Justice, briefed the Committee on the proposed amendments to “The Financial Institutions (Recovery of Finance) Amendment Act, 2026” (Government Bill) and explained the revised housing finance recovery mechanisms incorporated in the draft legislation. Copyright Business Recorder, 2026
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