The federal government is preparing to introduce an affordable loan package for 3-5 marla housing units in the upcoming budget. The proposed scheme includes an interest rate subsidy and a repayment period ranging from 10 to 12 years.
The Prime Minister’s Office is also exploring the possibility of extending this subsidy to 10-marla units for individuals constructing their first home. This may draw objections from the International Monetary Fund (IMF) due to the increased fiscal burden.
While the interest subsidy for 3-5 marla units is estimated to cost Rs. 50–70 billion over time, including 10-marla homes would significantly raise the overall cost.
The banking sector has raised concerns about mortgage financing, particularly the impact of court stay orders during loan repayment. Although some legal reforms have been introduced, further procedural hurdles continue to hinder progress.
Pakistan currently has around 30 million kacha and pakka housing units, according to the latest census. However, there is no accurate estimate of the actual housing deficit when evaluated against standards for decent housing.
For public sector employees, it has been suggested to adopt a model similar to the UK, where housing finance is made accessible upon entering government service. Currently, housing loans in Pakistan are too limited to purchase even a basic plot in major cities.