Cheaper house loans a growth driver

Pakistan is facing a significant housing deficit, estimated at 10 million homes, with annual demand far outstripping supply. To address this, the federal government launched the 'Apna Ghar' program, offering financing up to Rs10 million at a fixed 5% interest rate for the first 10 years, targeting lower- and middle-income households for properties up to 10 marla or 1,500 square feet. The program has seen strong demand, with over 191,900 applications and 75,200 approvals, though converting approvals into disbursements remains a key challenge as only 18% of approved funds have reached borrowers. Additionally, Punjab offers 'Apni Chhat Apna Ghar,' providing interest-free construction loans up to Rs1.5 million for small plot owners, complementing the federal initiative. These affordable housing efforts are seen as a crucial growth driver, aiming to generate employment, revive industries like construction and manufacturing, and provide financial security and dignity to families amidst broader economic uncertainty.