Prime Minister Shehbaz Sharif launches ‘Prime Minister’s Apna Ghar Plan’. PHOTO: RADIOPAK
The government has approved the inclusion of Non-Banking Financial Companies (NBFCs) in the Prime Minister’s Apna Ghar Programme, a move aimed at expanding access to affordable housing finance, particularly 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 Rs 3.2 trillion aimed at financing the construction of 500,000 homes across the country to improve affordability for low-income citizens.
The statement issued today said that as per the decision, eligible NBFCs could participate as Participating Financial Institutions (PFIs) in the government’s subsidized housing scheme, expanding the channels through which citizens can access housing finance.
The SECP said it had proposed the inclusion of NBFCs after identifying their potential to expand housing finance and strengthen financial inclusion in Pakistan.
“The initiative will not only improve the availability of housing loans but also strengthen the role of NBFCs in Pakistan’s financial sector,” the regulator said in a statement.
According to the SECP, non-banking housing finance companies and investment finance companies participating in the scheme could provide housing loans of up to Rs 10 million, while microfinance companies will offer loans of up to Rs 5 million.
The regulator said the inclusion of NBFCs would provide additional avenues for citizens, particularly 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 purchase their first home,” the statement said.
“The Prime Minister’s Apna Ghar Scheme aims to promote affordable housing through margin subsidies and risk-sharing mechanisms. Under the scheme, eligible first-time homebuyers can get financing for up to 20 years at a subsidized margin rate of 5% for the first 10 years,” he added.
To facilitate implementation, the SECP said it had introduced a comprehensive regulatory framework that allows eligible NBFCs to provide housing finance through their own resources or in association with other NBFCs, commercial banks and development financial 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 programme.
PTV Newsin a post on
