The State Bank estimates a shortage of 10 million homes in Pakistan as annual demand reaches 700,000 units against a supply of roughly 250,000 units. Customers under the Apna Ghar scheme can access a fixed rate of 5% for the first 10 years, with monthly instalments of Rs66,000.
Repayment periods for these loans extend to 30 years, and the scheme covers houses up to 10 marla or flats up to 1,500 square feet. As of 9 October, the Apna Ghar programme reported 75,200 approvals, following an earlier October review that noted Rs426 billion in approvals and Rs76 billion in disbursements.
Only about 18% of the approved amount has reached borrowers so far, despite a financing target of Rs700 billion intended to cover 125,000 homes. Punjab offers a separate construction loan component called Apni Chhat Apna Ghar, providing up to Rs1.5 million interest-free.
Owners of plots up to five marla in urban areas or 10 marla in rural areas can use this Punjab scheme, which requires repayment over nine years at approximately Rs14,000 monthly. The Pakistan Economic Survey 2025-26 estimated construction's direct contribution at 2.35% of GDP, while the sector saw a growth of 5.73%.
Construction growth reached 19% year-on-year in the first quarter of FY27, supported by a 7-8% increase in domestic cement dispatches reported by the finance ministry. Large-scale manufacturing accounted for 8.17% of GDP and grew by 6.11% during the same period.
State Bank of Pakistan regulations from August permit general mortgage tenors of up to 30 years and a debt burden ceiling of 65%. Regional peers offer similar incentives, such as India's PMAY-U 2.0 providing a 4% subsidy on the first INR800,000 of a loan and Indonesia's FLPP offering subsidised mortgages at 5%.
