Provision of subsidy on loans for low-cost housing under study

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ISLAMABAD: The government is looking for options to provide interest rates subsidies on low -cost housing loans loans, especially for three to five Marla units, to make home ownership more accessible and more accessible to medium -income families.

According to sources, the concerned ministries have been assigned to determine the correct construction cost of such small residential units so that commercial banks can allocate appropriate funds in the coming years.

The Ministry of Planning said in an official statement issued on Monday that the Federal Minister for Planning, Development and Special Actions Ahsan Iqbal chaired a high level meeting on cheap housing finance. The purpose of this meeting is to review a viable policy model to tackle the permanent challenges in long -term housing finance and promote low -cost housing in Pakistan.

The meeting was attended by Secretary of Planning Aviation Manzoor Somra. Governor of State Bank of Pakistan (SBP); Vice Chancellor of Pad; CEO of private banks; And representatives of PMRC and National Bank of Pakistan.

Participants reviewed international excellent methods and mortgages in countries, including Singapore, South Africa, Turkey, Bangladesh, Brazil and India. The debate focuses on developing a realistic and sustainable housing finance framework that is in accordance with Pakistan’s social and economic conditions.

Iqbal noted that the lack of long -term housing finance is one of the biggest obstacles in the country in achieving cheap housing. He reminded that significant progress has been made in 2017-18, but due to political instability, its pace has eliminated. “When there is no continuity of the policy, it is the people who pay the price,” he said.

Referring to the success of auto -lease models in the private sector, the minister questioned why a similar framework for housing cannot be implemented. “Millions of people spend their entire lives in rented houses,” he said. “The average income earner cannot afford to build a home through a loom payment for two to three million rupees.” He advocated the similar -based housing finance model on auto -lease, which was supported by strong government policy. He announced that “the government is ready to offer 100 % guarantee to banks to protect its capital.”

Member Infrastructure Waqas Anwar presented the proposed financial framework of the Ministry of Planning. It was also noted that the Punjab government was preparing to prepare its residential scheme. To resolve legal and disciplinary requirements, the Ministry of Planning will harmonize with Federal Prime Minister Nazir Tarar.

The minister urged private banks to adopt a market -based approach to residential finances without hesitation, which promised full support of the government. “Creating an easy housing finance framework is not rocket science,” he said. Models from all over the world have worked – we just need to adopt them according to our needs. “

He also advised government subsidies for small residential units-such as three Marla houses, while launching commercial banks have been allowed to design the financing framework independently for large properties, such as 10-Marla houses and above.

“This move can bring about a change in Pakistan’s residential sector, while economic growth plays a meaningful role in the development of infrastructure and social development,” Iqbal said.

Private banks responded positively to these suggestions and expressed their willingness to work together to develop a practical financing model for cheap housing. “This is not just a policy move – it is a national economic and social essential.”