ISLAMABAD: Pakistan has disbursed Rs104 billion ($376 million) in subsidized housing loans to nearly 18,000 families since launching a government-backed program six months ago, a senior finance adviser said on Thursday, as Islamabad seeks to expand homeownership and stimulate construction activity in the country.

The Prime Minister’s Apna Ghar Program, launched in April, offers first-time homeowners loans of up to Rs10 million ($36,144) at subsidized interest rates, targeting families struggling to purchase or build homes amid high property prices and limited access to affordable financing.

“Within six months, Rs104 billion have already been disbursed to the people,” Khurram Schehzad, adviser to Pakistan’s finance minister, told Arab News in an interview.

He said the funds had been disbursed through 17,697 housing loans by Oct. 30, while the total value of approved financing covered 90,405 applications.

According to figures shared by him, banks received more than 220,000 applications under the program, with around 41 percent approved. Disbursements rose from Rs21 billion ($76 million) at the end of June to Rs104 billion by the end of October, while loan approvals increased from Rs144 billion ($521 million) to Rs533 billion ($1.93 billion).

Under the scheme, banks can finance up to 90 percent of the property’s value, while borrowers contribute the remaining 10 percent.

The program also waives loan processing fees and early repayment penalties, according to the adviser.

“Because for a common man, a house, a common man and a woman, a house is the biggest priority for the family in the whole world,” Schehzad said, emphasizing the importance of affordable homeownership.

Pakistan faces a substantial housing shortage, estimated at between nine million and 12 million units, according to figures cited by the adviser. High construction costs, limited mortgage financing and low household purchasing power have historically restricted access to homeownership.

Schehzad said increased housing construction could support broader economic activity by generating demand for building materials and creating opportunities across related industries.

“When construction increases, the number of industries [benefiting from it] also increases,” he said.

“So because of that, the momentum of growth improves in your country.”

Pakistan’s government is targeting economic growth of around 4 percent, with policymakers seeking to revive investment and domestic demand while expanding access to credit.