The government has approved key changes to its housing finance scheme aimed at making homeownership more accessible and increasing participation in the formal housing market.
Under the revised policy, spouses and blood relatives will be allowed to jointly apply for housing finance by combining their incomes to purchase a residential property. The move is expected to improve eligibility for families that previously struggled to meet financing requirements individually.
The government has also simplified documentation and guarantee requirements for employees of government and semi-government organizations, making it easier for public-sector workers to obtain housing finance.
The decisions were taken during a review meeting on the Prime Minister’s housing finance initiative, where stakeholders and government representatives discussed the scheme’s progress, implementation challenges, and measures to improve access for prospective homeowners.
Association of Builders and Developers (ABAD) Chairman Hassan Bakhshi said the government is targeting the construction of five million housing units over the next four years but developers continue to face obstacles, including limited land availability and rising construction costs.
He urged the government to release land from its existing land bank for housing projects and introduce dedicated financing facilities for builders and developers to accelerate construction activity across the country.
Bakhshi also called for tax reforms, digitization of land records, and stronger market oversight to help stabilize construction material prices. He suggested allowing the import of construction materials where necessary to reduce cost pressures on the sector.
Launched last year, the Prime Minister’s “Apna Ghar” housing finance program offers subsidized financing for the purchase, construction, and renovation of residential units through affordable installment plans. The government expects the initiative to boost construction activity, support allied industries, and generate employment.
Ibrahim Amin, Chairman of TriStar International, said current geopolitical uncertainty in the Middle East could encourage both local and overseas Pakistanis to invest in Pakistan’s real estate sector.
He recommended accelerating the digitization of land records, introducing a transparent and fully computerized property transfer system, and strengthening legal protections against land grabbing and property fraud.
Amin also called for additional incentives for overseas Pakistanis, including simplified taxation, lower withholding taxes, and faster property registration procedures to attract more investment and remittances into the real estate market.
He welcomed the government’s housing finance reforms, saying easier access to subsidized loans could help stimulate demand, revive construction activity, and create jobs across multiple sectors of the economy.
