Prime Minister Shehbaz Sharif launches “Prime Minister’s Apna Ghar Scheme”. PHOTO: RADIOPAK
The government approved the inclusion of non-banking finance companies (NBFCs) in the Prime Minister’s Apna Ghar programme, a move aimed at expanding access to affordable housing finance, especially for underserved and unbanked sections of the population, the Securities and Exchange Commission of Pakistan (SECP) said on Saturday.
In April, Prime Minister Shehbaz Sharif launched a five-year Rs3.2 trillion housing program aimed at financing the construction of 500,000 homes across the country to improve affordability for low-income citizens.
The statement issued today said that under the decision, eligible NBFCs would be allowed to participate as Participating Financial Institutions (PFIs) in the government’s subsidized housing scheme, expanding the channels through which citizens can access housing finance.
The SECP said it had proposed the inclusion of NBFCs after identifying their potential to expand housing finance and strengthen financial inclusion in Pakistan.
“The initiative will not only increase the availability of home loans but also strengthen the role of NBFCs in Pakistan’s financial sector,” the regulator said in a statement.
According to the SECP, non-banking companies, housing finance companies and investment finance companies participating in the scheme will be able to provide home loans of up to Rs10 million, while microfinance companies will offer loans of up to Rs5 million.
The regulator said the inclusion of NBFCs would provide citizens, especially those with limited access to conventional banking services, additional options to obtain subsidized housing finance.
“With their wider reach, flexible financing models and focus on underserved customers, NBFCs are expected to help more families move towards owning their first home,” the statement said.
“Prime Minister’s Apna Ghar program aims to promote affordable housing through subsidy subsidy and risk-sharing mechanisms. Under the scheme, eligible first-time home buyers can obtain finance for up to 20 years with a subsidized margin of 5% for the first 10 years,” it added.
To facilitate implementation, the SECP said it had put in place a comprehensive regulatory framework that allows eligible NBFCs to provide housing finance through their own resources or in partnership with other NBFCs, commercial banks and development finance institutions.
The regulator added that it had also issued detailed guidelines covering eligibility criteria, operational procedures, supervisory requirements and monitoring mechanisms to ensure responsible and sustainable lending under the programme.
PTV Newsin a post on X, also said the SECP had notified housing finance companies and NBFCs to lend home loans to aspiring citizens registered under the Prime Minister Apna Ghar programme.
