ISLAMABAD: Pakistan on Thursday unveiled a multi-trillion-rupee housing scheme aimed at building up to 500,000 homes over four years, as Prime Minister Shehbaz Sharif positioned the construction sector as a key driver of jobs and economic growth amid a fragile recovery.
The initiative, which includes subsidized loans and an initial allocation of Rs321 billion ($1.15 billion) for 50,000 homes in its first year, is part of Islamabad’s broader push to shift from stabilization to growth after implementing stringent economic reforms to secure external financing and contain fiscal pressures.
Sharif said the government would facilitate low- and middle-income households through concessional financing, with loans of up to Rs10 million ($35,700) at a 5 percent markup for the first 10 years.
“With the budget approaching, we will bring major initiatives because construction is a key industry,” Sharif said in an address at the launch ceremony of the “Apna Ghar” housing scheme. “Whether it is a 5 marla home, 10 marla, or larger housing units, it creates demand for bricks, cement, wood, carpenters, electricians, engineers and draftsmen.”
A marla is a traditional unit of area used in Pakistan, equivalent to about 272 square feet.
Pakistan’s construction sector has long been seen by policymakers as a catalyst for economic activity due to its linkages with dozens of allied industries, from cement and steel to transport and services, as well as its capacity to generate large-scale employment.
The government aims to scale up the program, with total financing projected at Rs3.2 trillion ($11.5 billion) over the four-year period, targeting housing units of up to 10 marla across all provinces, as well as Gilgit-Baltistan and Azad Kashmir.
The push comes as Pakistan’s economy shows signs of stabilization after sharp subsidy cuts and tax reforms, while growth remains subdued and households continue to face high costs of living.
At the same time, the country is grappling with fresh external pressures from the ongoing Iran conflict, which has disrupted global energy markets and constrained liquefied natural gas (LNG) supplies, raising risks for power generation and industrial output.
Sharif said the housing scheme would help stimulate demand across the economy while addressing a large housing shortage.
“This entire supply chain strengthens industry, increases production and generates employment for millions, from laborers to engineers,” he said.
The prime minister added he would personally review the scheme’s implementation on a monthly basis, while banks participating in the program would be rewarded or penalized based on performance.
