The government approved the inclusion of lending Non-Banking Finance Companies (NBFCs) in the Prime Minister’s Apna Ghar Programme, a move aimed at expanding access to affordable housing finance, particularly for underserved and unbanked segments of the population, the Securities and Exchange Commission of Pakistan (SECP) said on Saturday.

In April, Prime Minister Shehbaz Sharif launched a five-year, Rs3.2 trillion housing programme aimed at funding the construction of 500,000 homes across the country to improve affordability for low-income citizens.

The statement issued today said that under the decision, eligible NBFCs would be allowed to participate as Participating Financial Institutions (PFIs) in the government’s subsidised housing scheme, broadening the channels through which citizens can access home financing.

The SECP said it had proposed the inclusion of NBFCs after identifying their potential to expand housing finance and strengthen financial inclusion in Pakistan.

“The initiative will not only enhance the availability of housing loans but also strengthen the role of NBFCs in Pakistan’s financial sector,” the regulator said in a statement.

According to the SECP, non-banking housing finance companies and investment finance companies participating in the scheme would be able to provide housing loans of up to Rs10 million, while microfinance companies will offer loans of up to Rs5 million.

The regulator said the inclusion of NBFCs would provide additional avenues for citizens, particularly those with limited access to conventional banking services, to obtain subsidised housing finance.

“With their wider outreach, flexible financing models, and focus on underserved customers, NBFCs are expected to help more families move towards owning their first homes,” the statement said.

“The Prime Minister’s Apna Ghar Programme aims to promote affordable housing through mark-up subsidies and risk-sharing mechanisms. Under the scheme, eligible first-time homebuyers can obtain financing for up to 20 years at a subsidised mark-up rate of 5% for the first 10 years,” it added.

To facilitate implementation, the SECP said it had introduced a comprehensive regulatory framework allowing eligible NBFCs to provide housing finance through their own resources or in partnership with other NBFCs, commercial banks and development finance institutions.

The regulator added that it had also issued detailed guidelines covering eligibility criteria, operational procedures, prudential requirements and monitoring mechanisms to ensure responsible and sustainable lending under the programme.

PTV News, in a post on X, also said that SECP had notified housing finance companies and NBFCs to lend house loans to aspiring citizens registered under the Prime Minister Apna Ghar Programme.