Pakistan’s Apna Ghar housing scheme has approved 75,198 loans worth Rs448 billion, but only Rs76 billion has been disbursed to 14,000 applicants, highlighting the gap between loan approvals and the actual release of financing. The figures indicate that although a substantial number of applications have received approval, the process of transferring funds to successful applicants remains a major part of the scheme’s implementation. Prime Minister Shehbaz Sharif has directed banks and relevant government agencies to simplify housing finance procedures and improve access to loans for eligible applicants. The government is also seeking to strengthen lending programmes across housing, small and medium-sized enterprises (SMEs), and agriculture, with consultations planned to identify procedural obstacles and recommend changes to existing financing arrangements.
Chairing a high-level meeting in Islamabad, the prime minister called for consultations with stakeholders from the housing, SME and agricultural sectors to improve the performance of government-backed lending schemes. He directed the relevant ministries, government secretaries and the State Bank of Pakistan (SBP) to complete the consultations by the end of October 2026 and submit recommendations. The discussions are intended to identify barriers that prevent applicants and businesses from accessing financing and to develop measures that can improve the delivery of loans. The government’s approach covers several priority sectors, reflecting its aim to expand access to credit for households seeking homes, businesses requiring capital and farmers needing financial support for agricultural activities.
Under its housing finance programme, the government has set a target of providing Rs700 billion in loans for 125,000 residential units during the current year. Progress under the Apna Ghar scheme will therefore remain important in assessing whether the target can be achieved. Officials informed the meeting that the processing time for housing finance applications had been reduced to 15 working days, while the number of documents required from applicants had been cut from 25 to five. These changes are intended to reduce administrative delays and make the application process easier for people seeking housing loans. However, the difference between the Rs448 billion approved and the Rs76 billion disbursed shows that approval figures alone do not reflect the amount of financing applicants have actually received.
Sharif directed officials to make it easier for applicants to provide the required information and obtain property title deeds that are free from encumbrances. Clear property documentation can be an important requirement in housing finance because lenders need to establish ownership and verify that the property can be used as security where applicable. Delays in documentation and other procedural requirements can slow the completion of financing even after an application has been approved. The prime minister also called for the early finalisation of recommendations prepared by a committee examining developer financing. The move is intended to address financing requirements within the housing sector beyond individual borrowers and support improvements in the wider housing finance process.
The prime minister also urged banks whose lending performance has remained unsatisfactory to improve their contribution to priority sectors. At the same time, he encouraged financial institutions that have extended greater support to these sectors. Banks play an important role in implementing lending programmes because their application assessments, documentation checks and disbursement procedures determine how approved financing reaches borrowers. The government’s focus on bank performance reflects the need to assess not only the value of loans approved but also the speed and effectiveness with which financing is delivered. Improving these processes could help applicants navigate the system more efficiently, although the outcome will depend on how banks and relevant government agencies implement the proposed measures.
Agricultural financing was another major subject discussed during the meeting. Officials reported that agricultural lending currently stands at Rs1.352 trillion, benefiting approximately 3.455 million people. The government aims to increase agricultural credit to Rs1.5 trillion and expand the number of beneficiaries to 4.5 million by June 2027. The proposed expansion is intended to extend financing to more people involved in agricultural activities and improve access to credit across the sector. Agricultural lending can support farmers’ spending on inputs, equipment and other operational requirements, depending on the financing products available. Reaching the government’s targets will require continued participation from banks and effective identification of borrowers who can benefit from formal agricultural credit facilities.
The SME sector has also received substantial financing under existing lending arrangements. According to officials, more than 352,000 businesses have obtained loans totalling Rs1.137 trillion. The government intends to increase SME lending to Rs1.5 trillion and expand the number of borrowing businesses to 575,000 by June 2027. Small and medium-sized enterprises depend on access to finance for working capital, equipment purchases, business operations and expansion. Increasing the number of businesses receiving loans would broaden participation in formal credit markets, while the higher lending target would increase the total financing available to the sector. The planned consultations are expected to examine ways to improve existing schemes and address obstacles that prevent eligible businesses from obtaining funding.
In addition to housing, agricultural and SME financing, Sharif directed officials to bring inactive warehouses and silos operated by the Pakistan Agricultural Storage and Services Corporation (PASSCO) under public-private partnerships. The objective is to expand storage capacity and improve the safe storage of farmers’ produce. Better storage facilities can help protect agricultural commodities after harvesting and support more effective handling of produce. Involving private-sector partners could provide another route for using currently inactive facilities, subject to the arrangements adopted by the government. The directive adds an infrastructure component to the broader discussion on agricultural support, linking access to credit with the facilities needed to manage and preserve agricultural output.
The government’s targets across housing, agriculture and SMEs set out an expanded lending agenda through June 2027, while the October deadline for consultations establishes an immediate step towards reviewing existing programmes. For the Apna Ghar scheme, the key figures remain the 75,198 approved loans worth Rs448 billion and the Rs76 billion disbursed to 14,000 applicants. The difference underscores the importance of completing the remaining steps between approval and payment. The impact of the government’s directives will depend on whether simpler documentation requirements, improved property verification, stronger bank performance and changes to lending procedures translate into faster disbursements and wider access to financing. Further progress will be measured against the housing target of Rs700 billion for 125,000 residential units, alongside the government’s agricultural and SME credit goals for June 2027.
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