Islamabad, the 7 May, 2026: The Chairman Standing Committee on Finance and Revenue Hon. Syed Naveed Qamar has underscored that affordable housing finance must genuinely serve deserving low-income families through transparent, accountable, and inclusive mechanisms. He further stressed the urgent need for robust foreclosure and recovery laws to strengthen Pakistan’s underdeveloped mortgage finance sector and enhance the confidence of financial institutions in expanding long-term housing finance.

He was chairing the 25th meeting of the Standing Committee on Finance and Revenue held at Parliament House, Islamabad, where the Federal Secretaries of Finance, Housing & Works, and Law & Justice briefed the Members on the Prime Minister Apna Ghar Program (PM-AGP), its implementation framework, and proposed reforms relating to housing finance and foreclosure laws.

The Secretary Ministry of Housing and Works in his presentation informed that the Prime Minister Apna Ghar Programme is a subsidized housing finance initiative aimed at enabling low and middle-income families to own homes while promoting economic activity and revitalizing the construction sector. Approved in August 2025 and revised in March 2026, the scheme offers financing of up to Rs. 10 million for first-time homeowners at a fixed markup rate of 5 percent, repayable over 20 years with a 90:10 financing ratio. As of 30 April 2026, 25,304 applications had been received, of which 8,990 applications involving Rs. 37.154 billion were approved, while Rs. 5.071 billion had been disbursed to 1,845 beneficiaries.

The Committee was further informed that Pakistan’s housing finance sector remains underdeveloped, with mortgage financing contributing only 0.3 percent to GDP and 0.56 percent to total private sector credit. The Government has therefore set a target of financing 500,000 housing units over the next four years, requiring an estimated Rs. 3.2 trillion in financing. The Ministry emphasized that reforms in foreclosure and recovery laws are essential to reduce risks for banks, enhance investor confidence, and ensure sustainable growth of the mortgage finance sector.
The Committee observed that Pakistan’s housing finance sector remains significantly underdeveloped and stressed the need for structural reforms, improved foreclosure and recovery laws, and a more conducive regulatory environment to encourage banks and financial institutions to expand mortgage lending.

The Chair and Hon. Members of the Committee expressed concerns regarding the limited outreach of housing finance facilities to low-income and marginalized communities, particularly in rural and underserved areas. The Committee also questioned the preparedness and institutional capacity of banks and financial institutions to achieve the ambitious target of financing 500,000 housing units within four years, given the presently underdeveloped mortgage finance ecosystem in Pakistan.

After detailed deliberations, the Committee recommended that the Government and the State Bank of Pakistan introduce simplified financing procedures, flexible eligibility criteria, and enhanced subsidy support for low-income and informal-sector households in order to improve accessibility and affordability of the scheme.

The Committee further recommended that comprehensive reforms in foreclosure and recovery laws be undertaken on a priority basis to strengthen the confidence of financial institutions, reduce non-performing loans, and support the sustainable expansion of mortgage financing in Pakistan.

The Secretary, Ministry of Law and Justice, briefed the Committee on the proposed amendments to “The Financial Institutions (Recovery of Finance) Amendment Act, 2026” (Government Bill) and explained the revised housing finance recovery mechanisms incorporated in the draft legislation. He informed the Committee that several structural changes had been introduced in light of stakeholders’ feedback, including the insertion of a new Section 15A specifically dealing with housing finance, instead of applying the provisions broadly to all mortgage deeds. The Committee was further informed that the revised draft provides extended notice periods in cases of mortgage default, with the first three notices now carrying a 30-day period each, amounting to a total of 90 days before further proceedings. In addition, a new proviso has been included enabling financial institutions, at any stage prior to the sale of mortgaged property, to reschedule, restructure, or settle outstanding mortgage liabilities.

The Committee, however, expressed concerns over provisions that could potentially grant banks excessive powers in the foreclosure process. Members emphasized that while an effective legal framework is essential to promote mortgage financing and safeguard the interests of lending institutions, adequate legal protections and due process must also be ensured to protect borrowers from arbitrary or unfair actions.

After detailed deliberations, the Committee deferred consideration of the bill to its next meeting and directed the Secretary, Ministry of Housing and Works, to circulate the revised draft of the bill to all Members for further review and input before finalization in the next meeting of the Committee.

The Hon. Minister for Finance and Revenue briefed the Committee on Pakistan’s current economic performance and held detailed deliberations on reforms aimed at strengthening the country’s housing finance sector. He informed the Committee that Pakistan remains on track to achieve its key fiscal targets through prudent fiscal management, improved external account performance, and measures aimed at enhancing investor confidence and macroeconomic stability.

The Hon. Chairman of the Committee appreciated encouraging economic indicators, including increased remittance inflows through Roshan Digital Accounts, improved access to international capital markets through Eurobond issuances, and progress on the approval process for Panda Bonds. The Hon. Members, however, stressed the importance of sustaining economic growth momentum by strengthening exports, diversifying export destinations, and addressing key supply-side constraints to ensure long-term economic resilience and stability. The Hon. Minister also responded in detail to various questions and queries raised by the Chair and Members of the Committee.

The Committee was also briefed by the Governor, State Bank of Pakistan, on foreign investment policy, including repatriation of capital and returns, key investor challenges, and measures to strengthen facilitation and confidence

The Committee approved the minutes of its previous meeting held on 30th April, 2026

The meeting was attended by Rana Iradat Sharif Khan, Syed Sami Ul Hassan Gilani, Ms. Zeb Jaffar, Dr. Nafisa Shah, Dr. Mirza Ikhtiar Baig, Ms. Sharmila Faruqi, Mr. Muhammad Jawed Hanif Khan, and Ms. Shahida Begum, MNAs.

The meeting was also attended by Hon. Minister and State Minister for Finance and Revenue, Secretaries of Finance, Housing and works, and Law and Justice, along with senior officers of the Finance Division and the State Bank of Pakistan.