Business Desk 
Jun 27, 2025
The federal government is planning to launch a new subsidised housing scheme in the upcoming fiscal year 2025–26 to revive the real estate and construction sectors and make housing more affordable for low- and middle-income families.
A Rs5 billion subsidy has been proposed in the federal budget to support this plan.
Govt’s Rs5bn housing scheme
The scheme seeks to make home loans less costly and easier for those without access to expensive loans.
Nevertheless, questions are already being raised about whether banks will participate and how the intermittent approach will come to market. Pakistan’s mortgage-to-GDP ratio is currently less than 1%, which is among the lowest in the region.
The new scheme appears to follow the old Mera Pakistan Mera Ghar (MPMG) scheme, which failed to materialise in 2022 with the increase in rates and low uptake. Government officials are hoping the new plan will help close the 1.2 million housing shortage and reinvigorate the construction industry, which employs thousands of people.
Experts are uncertain about the scheme’s success, like the MPMG, unless some of the fundamental issues, like expensive and prohibitive building costs, limited access to bank financing, and limited urban planning, are not resolved.
There is also a need for federal authorities and provincial authorities to better collaborate so the scheme can be realigned and effectively and quickly delivered.
If successful, the housing scheme may allow the government to deliver and achieve two primary objectives: increase economic activity and increase home-ownership for families that are most in need.
