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The Government of Pakistan has introduced the Mera Ghar Mera Ashiana scheme to promote affordable housing finance for first-time homeowners. The program offers subsidized loans with favorable terms, making it easier for citizens to buy or build their first home.
According to the State Bank’s circular, the scheme is open to Pakistani citizens who do not already own a house. It covers the purchase of flats or houses, construction on already-owned plots, and combined purchase-and-construction projects. Housing units include houses up to five marlas or flats up to 1,360 square feet.
The financing will be available through all commercial banks, Islamic banks, microfinance banks, and House Building Finance Corporation. Loan amounts range up to PKR 3.5 million with a maximum tenor of 20 years, while the government will subsidize the markup for the first 10 years. Customers will pay fixed rates of 5% for Tier 1 (loans up to PKR 2 million) and 8% for Tier 2 (loans above PKR 2 million up to PKR 3.5 million). No processing charges or prepayment penalties apply, making the scheme more accessible for lower- and middle-income families.
The program also ensures risk coverage, with the government providing up to 10% coverage of the outstanding portfolio on a first-loss basis. Authorities have directed banks to gear up their systems for smooth implementation and to prevent misuse of the facility.
This initiative is expected to play a vital role in expanding affordable housing access, strengthening Pakistan’s financial inclusion goals, and supporting urban development.
