By Staff Reporter
ISLAMABAD: Prime Minister Shehbaz Sharif formally launched a five-year, Rs3.2 trillion housing initiative on Thursday, committing the government to finance the construction of 500,000 homes nationwide as part of a broader effort to stimulate economic activity and address a chronic shortage of affordable shelter.
The “Wazir-e-Azam Apna Ghar Programme,” or “Apna Ghar,” will provide concessional financing to low- and middle-income households, with an initial Rs321 billion earmarked for 50,000 units in the first year. Loans of up to Rs10 million will be available for houses on plots of up to 10 marlas — a traditional Pakistani land measure equivalent to about 272 square feet — repayable over 20 years at a subsidized 5% markup for the first decade before switching to market rates.
Sharif, who activated the program by pressing a ceremonial button and handed out loan cheques to initial beneficiaries at the launch event, described the scheme as a personal priority with roots in his earlier Ashiana housing project as Punjab chief minister. “No programme is quite as dear to me as this, for it holds the promise of revitalising our industrial and commercial sectors while paving the way for economic prosperity,” he said. “This landmark programme is the culmination of extensive deliberations and tireless effort, having successfully overcome a myriad of complex challenges.”
The prime minister positioned construction as a powerful economic multiplier, noting its linkages to dozens of allied industries. “Whether it is a 5 marla home, 10 marla, or larger housing units, it creates demand for bricks, cement, wood, carpenters, electricians, engineers and draftsmen,” Sharif told the audience. “This entire supply chain strengthens industry, increases production and generates employment for millions, from laborers to engineers.”
The initiative will cover all four provinces as well as Azad Jammu and Kashmir and Gilgit-Baltistan. Sharif called homeownership a “sacred obligation” of government, aimed at citizens long deprived of housing security. He pledged to review progress personally each month to clear bottlenecks and ensure timely disbursements.
Attending the ceremony were Deputy Prime Minister and Foreign Minister Ishaq Dar, Housing and Works Minister Mian Riaz Hussain Pirzada, other federal ministers, senior banking executives, construction-industry representatives and program beneficiaries. Sharif thanked Finance Minister Muhammad Aurangzeb and State Bank of Pakistan Governor for their role in structuring the financing, as well as Pirzada and his team for shaping the policy.
In a pointed message to lenders, Sharif said banks that lead in extending credit under the program will receive national awards on Aug. 14. Those that fall short, he warned, “should not expect anything good” from him. The launch comes as Pakistan’s economy shows tentative signs of stabilization following tough subsidy cuts, tax increases and other reforms that helped secure external financing and ease immediate fiscal strains. Growth remains subdued, however, and households continue to grapple with elevated living costs.
Policymakers view the construction sector — long identified as a catalyst because of its broad backward and forward linkages — as a ready lever to shift the economy toward expansion, especially with the national budget approaching. Sharif said the government would roll out additional measures in the coming fiscal plan to support the industry. The housing push arrives against a backdrop of fresh external challenges, including disruptions to global energy markets and liquefied natural gas supplies stemming from the Iran conflict, which threaten power generation and industrial output.
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