ISLAMABAD (Kashmir English): The federal government has planned to introduce an interest rate subsidy for 3 and 5 marla houses in the next budget for the financial year 2025-26.
The PML-N government is also designing a cheap package with a repayment schedule of 10 to 12 years, reports added on Saturday.
Considering the estimated deficit of 14 million houses in the country against a swelling population, the government is planning an affordable package for 3 and 5 marla houses in the upcoming budget.
But the Prime Minister‘s Office (PMO) is also preparing to increase this potential subsidy for 10 marla residential places for first-time buyers across the nation. But the International Monetary Fund (IMF) can object to this plan.
The approximate yearly cost of the interest subsidy rate on 3 and 5 marla houses would be Rs50 to Rs70 billion, but for 10 marla houses, it will be greater.
The country’s banking industry has experienced challenges in mortgage lending and has complained about stay orders from courts at the time of repayment of outstanding installments of loans.
Legal reforms have taken place, but additional procedural measures are needed to address the development impediments to mortgage financing in Pakistan.
Representatives from nearly all banks raised their concerns regarding the legal obstacles in recovering due installments in recent meetings on affordable housing.
Hence, before promoting the housing and construction sector on a mass level, consultations with the Ministry of Law have been conducted to address this issue.
