Budget 2025-26: Expected subsidy for 3 Marla, 5 Marla houses in Pakistan

ISLAMABAD, June 7, 2025 – The federal government of Pakistan is working on a plan to help people build affordable houses. This plan will be part of the upcoming Budget 2025-26. It includes an interest rate subsidy for 3 and 5 marla houses.

Sources say the government wants to make it easier for low-income families to own homes. The repayment time for these loans could be between 10 and 12 years. The government is trying to reduce the country’s housing shortage, which is now estimated at around 14 million units.

Who Will Benefit?

The plan is mainly for people building small houses for the first time. The Prime Minister’s Office is also thinking about adding 10 marla homes to the plan. But experts believe the IMF may object. The cost of subsidy for 3 and 5 marla homes could be between Rs50 to Rs70 billion every year. Including 10 marla homes would raise the cost even more.

Banking Sector Issues

Banks in Pakistan have found it hard to recover mortgage loans. In many cases, courts have issued stay orders that stop them from getting their money back. Some laws have been changed, but more work is needed.

In a recent meeting, bank officials told the government about these issues. Many said they want stronger laws to protect lenders.

Legal Help on the Way

The government is now talking to the Ministry of Law. They want to fix the legal problems that slow down home loan recovery. Only then will banks feel safe to give more loans.

The housing plan could help many families. It may also give a boost to the construction industry. But it needs strong laws and approval from global lenders like the IMF to move forward.