Pakistan’s government is betting on a subsidised loan program to chip away at a chronic housing deficit that has left millions without a home of their own. The Prime Minister’s Apna Ghar Programme (PM-AGP), officially named ‘Wazir-e-Azam Apna Ghar Programme – Ghar Ho Tu Apna’, aims to turn renters into owners while injecting life into the broader economy through construction. Here is how the scheme is structured, who can benefit, and what applicants need to know. Main Developments Eligibility for the programme has been kept deliberately broad. Any Pakistani citizen with a valid CNIC qualifies, including non-residents holding NICOP or POC documents. Applicants cannot already own a residential property in their name. The scheme explicitly covers lawyers, journalists, judges, police, and armed forces personnel — no professional background is excluded. Income verification accommodates the informal economy. Individuals without formal pay slips can submit alternative proof such as bank statements, utility bills, or mobile top-up records. Joint applications are allowed, with up to four people pooling their incomes to meet repayment conditions. Monthly loan installments are capped at 65% of the applicant’s total income. Read also: Pakistani Rupee Edges Higher as Dollar Weakens Globally Background The scheme was launched in response to a severe housing shortage that has long constrained Pakistan’s development. Previous government housing initiatives have struggled with limited reach and high financing costs. The PM-AGP attempts to overcome those barriers by offering a fixed subsidised markup rate of 5% for the first ten years, with market-based rates applying afterward. The federal budget for FY27 allocated Rs71 billion in subsidies to keep interest rates low and absorb risk for participating lenders. Financing can reach up to Rs10 million through commercial and Islamic banks, or Rs5 million through microfinance companies. Repayment periods stretch up to 20 years, and applicants must contribute at least 10% of the upfront cost or down payment. Why It Matters For a country where homeownership remains out of reach for large segments of the population, this programme could shift the housing market’s dynamics. The construction sector supports dozens of allied industries — cement, steel, labour, and real estate services — so increased activity here can generate widespread employment. By including informal-sector workers, the scheme also extends formal credit access to a demographic often locked out of the banking system. The government’s 10% first-loss coverage on outstanding loan portfolios gives banks a safety net, encouraging them to lend more aggressively. No processing charges or prepayment penalties apply if a borrower settles the loan early, removing two common deterrents to taking out housing finance. These features collectively lower the barrier to entry for first-time buyers. What's Next Applications are now open through a dedicated online portal or in person at commercial banks, Islamic banks, microfinance banks, the House Building Finance Company Limited (HBFCL), and eligible non-bank financial companies. The State Bank of Pakistan has mandated that participating institutions decide on complete credit applications within 15 working days. Provincial governments have been directed to set up facilitation desks at the district level to help applicants secure land ownership records. The Ministry of Housing and the SBP are working to simplify loan application forms. A dedicated helpline to address public queries and resolve housing finance issues will be launched shortly.