ISLAMABAD – Pakistani government proposed major initiatives in the upcoming budget for FY2025–26 to provide affordable homes to low-income citizens in bid to address Pakistan’s longstanding housing shortage.
According to sources within the Ministry of Finance, the government aims to introduce subsidized financing scheme for 3 and 5 marla housing units. The proposal includes offering interest rate subsidies to reduce the burden on buyers and make homeownership more accessible for the lower-income segment.
A long-term installment plan of 10-12 years is also under consideration, with the government expected to allocate an annual subsidy of Rs50-Rs70 billion to support the scheme.
The housing crisis remains critical challenge, with estimated shortage of 14 million residential units nationwide. Meanwhile, recent census figures reveal that nearly 30 million people are living in semi-permanent or temporary structures.
In addition to the new housing subsidy program, the Ministry of Housing and Works is set to receive Rs2.3 billion for 21 ongoing development projects.
Key proposed allocations include
- Rs65 million for the renovation of the Prime Minister’s Office in Islamabad.
- Rs55 million for the modernization and refurbishment of the Prime Minister’s staff colony.
- Rs110 million for repairs and maintenance of other federal government buildings in the capital.
Crackdown on Non-Filers
Budget also outlines stricter financial regulations for non-filers. One notable proposal includes imposing a ban on foreign travel for individuals who are not on the tax roll.
As government continues its digitalization and compliance efforts, additional penalties and restrictions on financial transactions, property, and investment avenues for non-filers are also expected to be part of the broader fiscal reforms.
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