KARACHI: Commercial banks have approved housing loans worth Rs160 billion under the PM Housing Scheme, providing financial support to thousands of families seeking to own a home.
The update was shared by Adviser to the Finance Minister Adnan Pasha while addressing the First International Insurance Conference in Karachi. He said loan disbursements to successful applicants are currently in progress under the Prime Minister’s Wazir-e-Azam Apna Ghar Program.
According to Pasha, the PM Housing Scheme is helping reduce Pakistan’s housing shortage, which is estimated at around 10 million housing units. The initiative aims to make home ownership more affordable for low-income families through subsidized financing.
He said eligible borrowers can obtain housing loans at a concessional markup rate of 5 percent. The reduced financing cost is intended to make home ownership easier while helping families build long-term financial security.
The government has also introduced measures to encourage banks to participate in the program. The Ministry of Finance is underwriting up to 10 percent of potential loan losses for participating commercial banks.
In addition, the government is providing a markup subsidy for 10 years. Officials believe this support will reduce the financial burden on borrowers and increase access to housing finance.
Despite these incentives, Pasha noted that the PM Housing Scheme currently does not include an insurance component. He said homeowners remain exposed to risks such as floods, earthquakes, and other climate-related disasters.
He invited the insurance industry to develop suitable insurance products for the scheme. The government, he added, is willing to provide regulatory support to encourage such initiatives.
During the conference, Pasha also discussed other government programs aimed at supporting economic development. He announced plans to promote electric mobility by introducing 2 million electric motorcycles across Pakistan.
He said the country currently has around 3 million registered motorcycles that consume imported fuel worth an estimated $8 billion annually. The government is encouraging the shift to electric bikes through subsidies and zero-markup financing, although production and supply challenges remain.
The adviser also highlighted support for the agriculture sector. He said the recently launched Zarqaizi Scheme offers digital agricultural loans through 21 commercial banks in partnership with the Pakistan Banks Association and SUPARCO.
The initiative uses satellite monitoring and real-time data to improve transparency and ensure agricultural loans are used for their intended purposes.
Speaking at the same conference, Insurance Association of Pakistan Chairman Shoaib Javed Hussain said insurance penetration in Pakistan remains low. He noted that insurance contributes only 0.9 percent of GDP, compared with around 4 percent in neighboring countries and nearly 6 percent in developed economies.
He called for stronger public-private cooperation, greater innovation, and faster regulatory reforms to expand insurance coverage, particularly in the areas of crop and health insurance.
In other news read more about Pakistan Assigns E-Band Spectrum to Strengthen 5G Network Expansion
Officials believe the PM Housing Scheme will continue to improve access to affordable housing while encouraging greater participation from banks and financial institutions. The government expects the program to play an important role in addressing Pakistan’s long-term housing needs and supporting home ownership for low-income families.
