Federal Minister for Climate Change Musadik Malik on Monday said the National Housing Policy 2025 aims to make homeownership more affordable by allowing people to pay monthly installments comparable to their existing rent, while also protecting low-income settlements from forced demolition and promoting climate-resilient housing.
Speaking at the launch of the National Housing Policy 2025 at NUST University, the minister said Pakistan was facing a significant housing shortage, with demand far exceeding the number of homes being constructed each year. He said the country required around 500,000 new houses annually, while only about 300,000 units were being built, resulting in a shortfall of approximately 200,000 homes every year.
“If 200,000 people do not have homes and there are six people in a household, according to your own statistics, 1.2 million people are entering every year without a roof over their heads,” Musadik Malik said. He added that an estimated 10 million to 12.5 million people were currently living without adequate shelter.
‘Apna Ghar’ scheme
The minister said the government had formulated the policy to address the shortage of affordable housing finance, noting that bank financing for home purchases remained limited in Pakistan.
Under the government’s ‘Apna Ghar’ scheme, applicants would be required to contribute 10% of the property cost, while banks would provide financing for the remaining 90%. According to Malik, the 90% financing would be offered at a fixed markup rate of 5% for 10 years.
He said a loan of Rs2.5 million would require a monthly installment of approximately Rs16,500, while financing of Rs5 million would involve monthly payments of around Rs30,000 to Rs31,000. “The idea is that if you are paying Rs16,000 to Rs30,000 in rent throughout your life, you should now be able to use that amount to own your own house,” he said.
Protection for low-income settlements
Musadik Malik said the housing policy also focuses on protecting low-income communities, particularly settlements where families have lived for generations.
He said such settlements would not simply be demolished. Instead, the government would seek to improve them by providing essential infrastructure and basic services. These facilities would include drainage systems, safe drinking water, schools, healthcare clinics and roads, he added.
The minister also highlighted the importance of climate-resilient housing, saying future housing policies must take into account the growing risks posed by climate change and extreme weather events. He said the National Housing Policy 2025 was intended to address the country’s housing shortage while making homeownership more accessible to low- and middle-income families.