Commercial banks in Pakistan have approved housing loans worth Rs. 160 billion under the Prime Minister’s Wazir-e-Azam Apna Ghar Program. These loans are now being given to successful applicants, according to Adviser to the Finance Minister, Adnan Pasha. The program aims to make it easier for people, especially low-income families, to own their own homes.
Speaking at the First International Insurance Conference in Karachi, Pasha said Pakistan is facing a housing shortage of around 10 million homes. This scheme is helping reduce that gap by offering loans at a low markup rate of just 5 percent. This makes it more affordable for families to build or buy houses and improve their standard of living.
He also explained that the government is supporting banks by covering up to 10 percent of possible loan losses. In addition, the government is paying part of the interest (markup) for up to 10 years, which reduces the financial burden on borrowers. However, he pointed out that there is currently no insurance protection for homeowners in case of natural disasters like floods or earthquakes. He encouraged insurance companies to create suitable plans, promising full support from the government.
Pasha further shared that the government is planning to promote electric vehicles by introducing 2 million electric motorcycles. Pakistan currently has around 3 million motorcycles that use fuel, costing the country about $8 billion every year. To reduce this expense and protect the environment, the government is offering subsidies and interest-free loans for electric bikes. Still, production and supply issues need to be resolved.
In the agriculture sector, the government has launched the Zarqaizi Scheme to provide digital loans to farmers through 21 banks. This project is being run in partnership with the Pakistan Banks Association and SUPARCO. It uses satellite technology and real-time data to monitor how the loans are being used, ensuring transparency and proper usage.
At the same event, Shoaib Javed Hussain, Chairman of the Insurance Association of Pakistan, said that insurance usage in Pakistan is still very low. It contributes only 0.9 percent to the country’s GDP, compared to around 4 percent in nearby countries and about 6 percent in developed nations. He stressed the need for better innovation, stronger public-private partnerships, and faster policy changes.
Experts believe that improving housing, transport, and agriculture through such programs can boost the economy and create more opportunities for people. Expanding insurance coverage, especially in health and agriculture, can also protect citizens from unexpected financial losses. With continued efforts and better planning, these initiatives can bring long-term benefits to Pakistan’s economy and its people.