Pakistan’s efforts to make loans more accessible for ordinary people are showing strong progress, especially in the housing sector. Under the government’s PM Apna Ghar programme, more than 7,600 families have received housing loans worth over Rs. 38 billion.
The latest figures show that the number of people applying for housing finance has increased sharply in recent months. The programme is aimed at helping more Pakistanis, particularly those from low- and middle-income groups, get financial support to build or buy their own homes.
The progress was reviewed as part of the government’s wider efforts to improve access to finance for different sectors of the economy. These sectors include housing, agriculture, small businesses, exports, information technology and green transport.
Strong Growth in Housing Finance
According to the latest official update, the PM Apna Ghar programme has recorded major growth since June 2026. The number of applications has increased by around 52 percent and has reached nearly 139,000.
The number of approved applications has also risen strongly. More than 46,000 applications have now been approved, showing an increase of about 84 percent compared to the figures recorded earlier.
The total amount of approved financing has almost doubled. It has increased from around Rs. 144 billion in June to nearly Rs. 279 billion by the middle of August.
The most important progress, however, has been seen in the actual release of loans. More than 7,600 housing loans have now been given to families, with the total amount crossing Rs. 38 billion. The amount of money released under the programme has increased by around 59 percent since June.
This means that thousands of families have moved beyond the application and approval stages and have actually received financing for their housing needs.
Helping Families Move Towards Home Ownership
For many families in Pakistan, owning a home remains a major life goal. However, rising property prices, construction costs and high borrowing expenses have made it difficult for many people to arrange enough money.
Government-backed housing finance programmes are designed to reduce this gap by making loans easier and more affordable for eligible families.
Under the current housing finance scheme, eligible borrowers can receive financing for homes within the limits set by the programme. The government has also taken steps to make the scheme more attractive by reducing the financing cost for borrowers and improving the rules related to housing loans.
The State Bank of Pakistan has revised the affordable housing finance scheme, allowing eligible customers to receive financing of up to Rs. 10 million. The fixed financing rate for customers under the revised scheme is 5 percent. The changes are aimed at making home finance more affordable for people who want to become first-time homeowners.
Government Focuses on Easier Access to Loans
The growth in housing loans is part of a broader government plan to increase access to formal financing across Pakistan.
The government wants banks and financial institutions to provide more funding to productive sectors instead of limiting lending to a small number of established borrowers. The wider goal is to connect finance with investment, business activity, job creation and economic growth.
At a recent meeting of the Access to Finance Steering Committee, Finance Minister Muhammad Aurangzeb reviewed progress in several important sectors. These included housing, agriculture, small and medium-sized businesses, exports, information technology and renewable energy.
The government believes that better access to finance can help more people participate in economic activity. Easier financing can support families buying homes, farmers investing in agriculture, small businesses expanding their operations and companies increasing exports.
Major Increase in Applications
The strong rise in applications under the PM Apna Ghar programme shows that many families are interested in using formal housing finance.
Nearly 139,000 applications have been received under the programme. The increase in applications suggests that more people are becoming aware of the available financing options.
At the same time, the number of approved applications has reached more than 46,000. This means a large number of applicants have successfully moved forward in the process and received approval for financing.
The value of approved loans has also increased significantly. From around Rs. 144 billion in June, approved financing has risen to approximately Rs. 279 billion.
This growth is important because it shows that banks and financial institutions are increasing their involvement in housing finance. Pakistan’s mortgage market has traditionally remained small compared with many other countries, so the expansion of formal housing lending could help more families gain access to long-term financing.
Changes in Housing Finance Rules
The government has also been working on changes in the legal and regulatory system to support the growth of housing finance.
The revised housing finance rules include a 90:10 loan-to-value ratio, which means borrowers may need to arrange a smaller share of the total property value while financing can cover a larger part, subject to the rules of the programme.
Other reforms include changes related to debt burden calculations, assessment of informal income, property valuation, documentation and digital processes.
These changes are important in Pakistan, where many people earn money from small businesses, self-employment or informal work and may not have the same documents as salaried employees.
Simplifying procedures and improving the assessment of different types of income could help more eligible people apply for formal housing loans.
The government is also supporting longer financing periods, which can make monthly repayments easier for borrowers to manage.
Agriculture Finance Also Expands
Housing is not the only sector showing progress. Agricultural finance has also increased.
The number of people receiving agricultural financing has risen from around 3.26 million in June to about 3.37 million by the middle of August.
The total amount of agricultural financing has remained close to Rs. 1.26 trillion. This money supports farmers and agricultural activities across the country.
Through the Zarkhez-e programme, more than 58,000 farmers have registered. Bank approvals under the programme have increased by about 12 percent and have crossed 16,700.
The amount of financing approved under the programme has gone above Rs. 7.2 billion. Around 5,000 loans have also been released.
Agriculture remains one of the most important parts of Pakistan’s economy. Farmers often need financing to purchase seeds, fertilisers, machinery and other necessary items. Better access to formal loans can help them improve productivity and manage their financial needs more effectively.
Small Businesses Get More Access to Formal Finance
Small and medium-sized businesses are another major focus of the government’s access-to-finance plan.
Around 330,000 small and medium enterprises are currently accessing approximately Rs. 1.05 trillion in formal financing.
The government and financial institutions are also working on new ways to assess borrowers. Credit scoring models are being introduced across 13 banks to reduce excessive dependence on traditional collateral-based lending.
In the past, many small businesses found it difficult to obtain loans because they did not have enough property or other assets to provide as security.
New credit assessment methods may allow banks to look at other factors, such as business records and financial behaviour, when deciding whether a borrower is suitable for financing.
If these systems are used effectively, more small businesses could gain access to bank loans and other formal financial services.
Support for Business Growth and Exports
The wider financing strategy is also linked with business expansion and exports.
The government wants financial support to help companies meet their short-term working capital needs while also giving them access to long-term financing for investment and expansion.
Export businesses can use financing to improve production, purchase equipment and increase their capacity. Better access to funding may also help Pakistani companies compete in international markets.
The government’s overall plan is to encourage investment in productive sectors that can create jobs and increase economic activity.
Officials believe that finance should play a stronger role in supporting real economic growth instead of remaining concentrated in only a few sectors or large businesses.
Green Financing Shows Positive Progress
Green finance has also emerged as an important area of growth.
Under the Pakistan Accelerated Vehicle Electrification Programme, more than 83,000 applications have been received.
The number of approved applications has crossed 15,800, showing an increase of around 24 percent since June.
More than 4,000 loans have been released under the programme, marking an increase of approximately 34 percent. The number of electric vehicles delivered has also increased significantly.
At the start of the programme, around 471 vehicles had been delivered. That number has now increased to more than 1,500.
The growth in electric vehicle financing is part of Pakistan’s wider effort to support cleaner transport and reduce dependence on traditional fuel-powered vehicles.
However, the long-term success of such programmes will depend on several factors, including the availability of charging infrastructure, affordable vehicles and continued financing support.
A Wider Plan for Economic Participation
The government’s broader goal is to make formal financing available to more people and businesses across Pakistan.
Officials want financial resources to support investment, production, employment and exports. The idea is that when more families, farmers and businesses can access suitable financing, economic activity can increase across different parts of the country.
For families, housing loans can make home ownership possible. For farmers, agricultural financing can help improve production. For small businesses, access to credit can support expansion and job creation.
Similarly, financing for exports and green projects can support new areas of economic growth.
The government says the purpose is to make Pakistan’s economy more inclusive by allowing a larger number of people and businesses to take part in formal financial activity.
Challenges Still Remain
Although the recent figures show strong progress, major challenges still remain.
Pakistan’s housing finance sector has historically been underdeveloped, and many families continue to face difficulties in purchasing or constructing homes.
Property prices and construction costs remain high, while the process of obtaining a loan can still be difficult for some applicants.
Many Pakistanis also work in the informal economy and may not have regular salary slips or traditional financial records. This can make it harder for them to qualify for loans under standard banking rules.
Banks also face concerns related to loan recovery, legal processes and the long-term risks connected with housing finance.
The government has been working on legal reforms to strengthen the system, but it is important to maintain a balance between protecting lenders and protecting borrowers.
Positive Sign for Pakistan’s Financial Sector
Despite these challenges, the latest progress is a positive sign for Pakistan’s financial sector.
The disbursement of more than Rs. 38 billion to over 7,600 families shows that housing finance is moving forward at a faster pace.
With nearly 139,000 applications and more than 46,000 approvals, the programme has created strong interest among people seeking support for home ownership.
The increase in agricultural financing, formal lending to small businesses and electric vehicle financing also shows that the government is trying to improve access to credit across different sectors.
If the current momentum continues and the financial system becomes easier to access, more Pakistanis could benefit from formal loans in the coming years.
For now, the more than 7,600 families that have received housing loans represent an important step in the government’s effort to expand home ownership and improve access to finance.
The coming months will show whether the government can maintain this growth, process applications efficiently and ensure that financing reaches deserving people across the country. If successful, the programme could help thousands more families move closer to the dream of owning a home while also supporting Pakistan’s construction and wider economy.
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