The government of Pakistan has made a bold move towards solving the perennial problem of inadequate housing in the country by including non-bank financial institutions in the Prime Minister’s Apna Ghar Scheme, which provides financing for affordable housing to millions of Pakistanis who have no traditional banking accounts.
As per the decision taken by the Government of Pakistan through the recommendation of the Securities and Exchange Commission of Pakistan, the PM Apna Ghar Program NBFCs’ expansion will permit housing finance and investment finance companies to provide housing loans under this program, and microfinance companies would also join this program at the same time.
What NBFCs and Microfinance Companies Now Have to Offer
The NBFC framework under the PM Apna Ghar Scheme sets out explicit financing ceilings for each type of non-banking entity participating in the scheme:
| Institution Type | Maximum Loan Amount |
|---|---|
| Non-bank housing finance companies | Rs10 million |
| Non-bank investment finance companies | Rs10 million |
| Eligible microfinance companies | Rs5 million |
| Profit rate (first 10 years) | 5% subsidised |
All qualified loan applicants benefit from finance at an interest rate of 5 percent profit, subsidized for 10 years, which is identical to those provided via the banking route, but now made available through the NBFC environment to areas served by no banks whatsoever.
How NBFCs Alter Everything for the Unserved Borrowers
The PM Apna Ghar Scheme The NBFCs inclusion in the scheme solves the first and foremost issue that prevents the low-income people of Pakistan from being able to access the scheme.
The NBFCs in Pakistan – especially micro-finance firms – operate in areas which regular banks do not touch at all. Areas like rural districts, peripheries of urban cities, people from the informal sector, daily laborers, and traders who are unable to provide documentation, collateral, or have any bank record due to the requirements of regular banks can get NBFC loans through existing networks.
The Partnership Model Explores Other Channels
Another regulation introduced by the SECP with regard to the inclusion of the PM Apna Ghar Program NBFCs in the regulatory framework gives another option of co-financing where NBFCs and banks can work together for the provision of housing finance.
This would be a combination of their comparative strengths that the banks have greater capital availability while the NBFCs have the presence on the ground and the disbursement facility.
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Regarding the Apna Ghar Scheme for the Prime Minister
“Wazir-e-Azam Apna Ghar Program — Ghar Ho Tu Apna” was initiated formally on 30th April 2026 after comprehensive discussions with the private sector, Ministry of Finance, and State Bank of Pakistan. This scheme was developed by the Prime Minister Shehbaz Sharif to counter the problem of housing shortfall faced by Pakistan.
There is no limitation on the geographical scope of this project – all four provinces, Gilgit-Baltistan, and Azad Kashmir will receive the benefit of the plan, which makes it the most geographically widespread programme for housing in Pakistan to date.
Year one goals:
- Construction of 50,000 houses
- Mobilization of Rs321 billion worth of financing
The very magnitude of these goals alone makes PM-AGP the biggest attempt of Pakistan to provide affordable housing in the history of the country. Expansion of the PM Apna Ghar Program through NBFCs greatly increases the chances of their fulfillment.
Why Is Such an Approach Needed To Address Pakistan’s Housing Shortage
Pakistan is experiencing a housing shortage of 10 million or more homes — a problem that worsens every year, as demographic growth and rural to urban migration outstrip the number of new homes being constructed. The shortage of housing is disproportionately experienced by the poor and lower-middle class people who cannot afford market financing and have never had any subsidies before.
The inclusion of the PM Apna Ghar Program NBFCs does not address the shortfall in housing needs. No one project can solve this shortfall. However, by blending government grants, banking funds, NBFC channels and microfinance communities, all within one cohesive housing financing system, Pakistan now has a platform that has real chance to make a difference.
Nayab Fatima is a media professional specializing in fact-based journalism, research, and analytical reporting on technology, telecom, aviation, and automobiles.
