Islamabad: The Standing Committee on Finance and Revenue, chaired by Syed Naveed Qamar, has emphasized the need for affordable housing finance to genuinely assist low-income families. The Committee highlighted the necessity for robust foreclosure and recovery laws to bolster Pakistan’s mortgage finance sector and instill confidence among financial institutions in expanding long-term housing finance.
According to National Assembly of Pakistan: During the 25th meeting held at the Parliament House, federal secretaries briefed the Committee on the Prime Minister Apna Ghar Program, which offers subsidized housing finance to low and middle-income families. The scheme, approved in August 2025 and revised in March 2026, provides financing up to Rs. 10 million with a 5 percent fixed markup, aiming to finance 500,000 housing units over the next four years.
The Secretary of the Ministry of Housing and Works reported that 25,304 applications had been received under the program, with 8,990 approved and Rs. 5.071 billion disbursed to beneficiaries. Despite these efforts, Pakistan’s housing finance sector remains underdeveloped, contributing only 0.3 percent to GDP.
The Committee expressed concerns over the limited reach of housing finance to marginalized communities, particularly in rural areas. It questioned the capacity of banks to meet the ambitious target of financing 500,000 units. Recommendations included simplified financing procedures and comprehensive reforms in foreclosure laws to enhance financial institutions’ confidence and reduce non-performing loans.
Proposed amendments to the Financial Institutions (Recovery of Finance) Amendment Act, 2026, were discussed, including extended notice periods for mortgage defaults. However, concerns were raised about provisions potentially granting excessive powers to banks in the foreclosure process.
The Hon. Minister for Finance and Revenue briefed the Committee on Pakistan’s economic performance, highlighting increased remittance inflows and improved access to international capital markets. The Committee stressed the importance of sustaining economic growth by diversifying exports and addressing supply-side constraints.
The meeting concluded with the approval of the minutes from the previous meeting and included participation from various members of the National Assembly and senior officials from the finance sector.