Prime Minister Shehbaz Sharif launches ‘Prime Minister’s Apna Ghar Programme’. PHOTO: RADIOPAK
The government has approved the inclusion of non-banking financial companies (NBFCs) in the Prime Minister’s Apna Ghar scheme, a move aimed at expanding access to affordable housing finance, especially for underserved and unbanked segments of the population, the Securities and Exchange Commission of Pakistan (SECP) said on Saturday.
In April, Prime Minister Shehbaz Sharif launched a five-year housing program worth 3.2 trillion rupees aimed at financing the construction of 500,000 housing units 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, thereby expanding the channels through which citizens can access housing finance.
The SECP said it proposed the inclusion of NBFCs after identifying their potential to expand housing finance and enhance financial inclusion in Pakistan.
“The initiative will not only improve 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-bank housing finance companies and investment finance companies participating in the scheme would be able to provide housing loans of up to Rs 10 million, while microfinance companies would offer loans of up to Rs 5 million.
The regulator said the inclusion of NBFCs would provide additional avenues for citizens, especially those with limited access to conventional banking services, to obtain subsidized housing finance.
“With their broader reach, flexible financing models and focus on underserved customers, NBFCs are expected to help more families own their first home,” the statement said.
“The Prime Minister’s Apna Ghar scheme aims to promote affordable housing through incremental subsidies and risk-sharing mechanisms. Under the scheme, eligible first-time home buyers can obtain financing for up to 20 years at a subsidized mark-up rate of 5% for the first 10 years,” he adds.
To facilitate implementation, the SECP said it has introduced a comprehensive regulatory framework allowing eligible NBFCs to provide housing finance from 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, prudential requirements and monitoring mechanisms to ensure responsible and sustainable lending under the scheme.
