Prime Minister Shehbaz Sharif has directed a review of the government’s Housing Scheme after concerns were raised about its compliance with constitutional requirements. The move follows reports that the current structure may conflict with the deadline set for eliminating riba in Pakistan.
According to officials, the prime minister sought a detailed briefing after a media report highlighted key issues. The report suggested that the “Apna Ghar Programme” could extend interest-based lending beyond January 1, 2028. This date has been set under the 26th Constitutional Amendment for transitioning to a riba-free financial system.
Authorities have now been asked to examine the design of the Housing Scheme. The review will assess whether its financial structure aligns with constitutional obligations. Officials will also determine if changes are required to ensure compliance.
The current plan includes a five-year loan disbursement period and a repayment timeline of up to 20 years. Under the programme, loans of up to Rs10 million are offered. Borrowers are charged a fixed 5% markup for the first 10 years, followed by market-based rates.
The government has allocated Rs321 billion for the first year of the scheme. The goal is to finance around 50,000 housing units. Over five years, total financing is expected to reach Rs3.2 trillion. This makes the Housing Scheme one of the largest public housing initiatives in the country.
Officials said the review will focus on both legal and financial aspects. It will examine whether interest-based lending can continue during the transition period. Another key area is the possibility of converting the programme into a Shariah-compliant model.
The development shows the government’s awareness of the sensitivity of the issue. The elimination of riba is a constitutional requirement, and policymakers are under pressure to meet the deadline.
At the launch event, the prime minister had described the initiative as a major step toward affordable housing. He also highlighted its role in boosting economic activity and supporting low-income families.
Sources said input is being gathered from financial experts, regulators, and legal authorities. Deputy Prime Minister Ishaq Dar and other senior officials are also part of the consultation process.
In other news read more about: Punjab Launches Rehmat Card Program to Support Widows and Orphans
A final report is expected soon. Its findings could impact not only this Housing Scheme but also other government-backed financing programmes in the future.
