Experts are optimistic about the revival of economic activities and job creation in the construction sector following Pakistan government’s decision to revise the financing limit to Rs10 million under the subsidised housing scheme Mera Ghar Mera Ashiana.
They believe the revised financing limit could attract more people to avail the facility to purchase houses in major cities and help reduce the housing deficit across the country.
The Economic Coordination Committee (ECC) made significant revisions to the subsidised housing finance scheme in its recent meeting. It also reduced the mark-up rate for customers from 8% to 5%, besides enhancing the financing limit from Rs3.5 million to Rs10 million and increasing the permissible size of houses to up to 10 marlas (approximately 2,722 sq ft) or apartments of up to 1,500 sq ft.
The government has also set an ambitious target to facilitate financing for 0.5 million houses over the next four years to make housing accessible to a larger segment of society.
The upward revision in the financing limit under the mark-up subsidised scheme was likely to boost overall economic activity in the country within the next few months, as a larger number of buyers would be able to purchase houses or apartments through the facility, said Ibrahim Amin, Chairman of TriStar International Consultants, a real estate valuation company.
Different incentives under the scheme, including the lower mark-up rate and reduced down payment, would also attract a significant number of middle-class families, salaried individuals, and overseas Pakistanis to afford decent housing in major cities of the country, he added.
He believes that the scheme will broaden public access to financing and encourage many people to avail themselves of other banking services in the future, including business credit and auto loans.
“The scheme will benefit all stakeholders, including the public, banks, and industries, through its long-term economic impact. Even the government is likely to earn substantial revenue through the value chain of the construction and real estate sectors.”
The government rolled out the Mera Ghar Mera Ashiana scheme in September 2025 with a limited financing ceiling of up to Rs3.5 million. According to available data, banks have received over 10,594 loan applications amounting to Rs32.288 billion, while 344 loans worth Rs810 million have so far been disbursed.
Previously, a similar housing finance scheme was launched in 2020 with a maximum financing limit of up to Rs10 million in phases. The scheme attracted loan requests worth Rs514 billion within just one and a half years before it was suspended.
Chairman of the Association of Builders and Developers of Pakistan (ABAD), Hassan Bukshi, appreciated the government’s restructuring of the housing finance scheme, calling it a positive decision to empower the public and stimulate the real estate and construction sectors.
“The revision in the facility fulfills the long-standing demand of builders and developers to enhance the financing limit of the Mera Ghar Mera Ashiana scheme in line with prevailing property market prices,” he said.
He was of the view that a number of unsold housing units and apartments could find buyers through the scheme, while several ongoing projects might accelerate their completion. Plot owners would also be able to construct their homes, and housing societies could attract new buyers, he maintained.
“As soon as the revised scheme is officially announced by the banking regulator and implemented by commercial banks, economic activities in the construction and allied sectors are expected to pick up within the next few months,” Amin said.
However, he pointed out that the target of financing 0.5 million housing units within four to five years could be challenging due to the current shortage of available housing inventory.
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