Commercial banks have approved Rs. 160 billion in housing loans under the Prime Minister’s Wazir-e-Azam Apna Ghar Programme, with funds now being disbursed to successful applicants.
Speaking at the 1st International Insurance Conference in Karachi, Adviser to the Finance Minister Adnan Pasha said the government-backed scheme is helping tackle Pakistan’s estimated housing shortage of 10 million units by offering affordable financing at a 5 percent markup.
He said the Ministry of Finance is backing the initiative by covering up to 10 percent of potential loan losses for banks while subsidizing the markup for 10 years, making home ownership more affordable for low- and middle-income families.
Pasha noted that the programme currently lacks an insurance component to protect homeowners against climate-related disasters and other unexpected losses. He invited the insurance industry to develop suitable products, adding that the government is prepared to support insurers through an enabling regulatory framework.
He also announced plans to accelerate Pakistan’s shift to electric mobility by promoting 2 million electric motorcycles. According to Pasha, the country’s nearly 3 million registered motorcycles consume fuel worth about $8 billion annually. The government is encouraging EV adoption through subsidies and zero-markup financing, although manufacturing capacity remains a key challenge.
On agriculture, Pasha highlighted the recently launched Zarqaizi Scheme, under which 21 banks, in partnership with the Pakistan Banks Association (PBA) and SUPARCO, are providing digital agricultural loans. The programme uses satellite monitoring and real-time data to track loan utilization, improving transparency and efficiency.
During the conference, Insurance Association of Pakistan (IAP) Chairman Shoaib Javed Hussain said Pakistan’s insurance sector remains significantly underdeveloped despite its growth potential.
He noted that insurance penetration stands at just 0.9 percent of GDP, compared to around 4 percent in regional economies and nearly 6 percent in developed markets. Insurance density is also low at $14 per person, far below the global average of about $60.
Hussain urged insurers, regulators, and the government to work together to expand insurance coverage through innovation and reforms, particularly in crop and health insurance, to improve financial protection for households and businesses.
