The federal government is preparing to launch a new housing program aimed at supporting low-income families with subsidized homes and offering mortgage options for the middle class.
The plan includes the construction of 200,000 government-backed low-cost housing units as the first phase of the initiative. Prime Minister Shehbaz Sharif is expected to formally announce the scheme soon, which is designed to revive the struggling housing and construction sector, as well as its 72 linked industries.
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According to Dawn, citing sources, the government would provide 3- to 5-marla houses with a 50% subsidy on financing. The initial batch of homes will be built by the public sector, with the program expected to expand after its launch.
On Monday, Planning Minister Ahsan Iqbal chaired a meeting on affordable housing finance, where key challenges in long-term housing funding were discussed. The meeting included State Bank of Pakistan Governor Jameel Ahmed, CEOs of public and private banks, and officials from the Pakistan Mortgage Refinance Company.
During the meeting, a draft plan was shared with the State Bank and commercial banks. Two policy options were considered: either offering subsidized loans to individuals to build their own homes, or having the government construct the homes and sell them at half-financed rates. Bank leaders asked for a week to provide feedback before discussions resume next week.
