Islamabad: The government is gearing up to introduce significant incentives aimed at improving access to finance for affordable housing projects, including the reintroduction of a markup subsidy for low-cost schemes. The decision emerged during the latest meeting of the Working Group on “Access to Finance,” chaired by Hafiz Mian M. Nauman, Convener at the Naya Pakistan Housing Development Authority (NAPHDA).
The working group reached a consensus on several key measures to facilitate mortgage financing and promote affordable housing. Among the proposed recommendations are:
Reduction of Policy Rate: Advocating for a single-digit policy rate and reduced operational costs for banks to make housing finance more accessible.
The meeting also highlighted the importance of financial literacy and public awareness campaigns to educate potential homeowners about available financing options. Innovative mortgage products such as green mortgages, incremental housing microfinance, and community-based housing were also discussed to cater to diverse income groups.
Representatives from the State Bank of Pakistan (SBP) provided insights into the regulatory framework, reporting that the banking sector had disbursed Rs. 233 billion in mortgage financing to date. Of this, Rs. 93 billion was allocated under the “Mera Pakistan Mera Ghar” scheme for low-income housing. However, challenges related to execution and subsidies due to IMF policies were noted.
The SECP representatives emphasized tax incentives for low-cost housing, while other experts, including real estate analysts, called for simplifying loan procedures and introducing mortgage bonds to support housing development.
MD PMRC Mudassar Khan stressed the need for budgetary support and implementation of the Foreclosure Law 2020 to expedite access to housing finance. He also proposed tax exemptions and green bonds to promote affordable and sustainable housing projects.
With these measures, the government aims to significantly enhance mortgage financing, making affordable housing a reality for low- and middle-income groups across Pakistan.
Samra Zulfiqar, a real estate analyst at Zameen.com, is passionate about finding projects that offer buyers the best returns. Her keen insights spotlight the market’s most promising opportunities.
