Date: 30th April 2026
The initiative is designed to tackle the national housing shortage by providing subsidized financing for first-time homeowners.
Financial Framework
Loan Limits: Applicants can secure loans ranging from 2.5 million PKR to 10 million PKR.
Subsidized Markup: A fixed interest rate of 5% is applied for the first 10 years. After this period, the rate will transition to standard market rates (KIBOR + a bank spread).
Repayment Tenure: The loan is spread over a flexible period of up to 20 years.
Equity Requirement: Borrowers are typically required to provide a minimum 10% down payment, with the government/banks financing up to 90% of the property value.
Property & Construction Specifications
Permissible Size: The scheme covers the construction or purchase of houses up to 10 Marla or apartments/flats up to 1,500–2,000 sq. ft.
Volume Targets: * Year 1: 50,000 housing units (Budget: 321 billion PKR).
5-Year Goal: 500,000 housing units (Total Budget: 3.2 trillion PKR).
Geographic Scope: Applicable across all four provinces, Islamabad, Gilgit-Baltistan, and Azad Jammu & Kashmir.
Eligibility & Compliance
Exclusivity: Strictly for first-time homeowners; applicants must provide an undertaking that they do not currently own residential property.
Oversight: The Prime Minister has committed to a monthly personal review of the program to ensure timely loan disbursements and to remove any bureaucratic hurdles for builders and buyers.
Economic Linkage: The government explicitly views this as a boost for the construction industry, aiming to stimulate over 40 allied sectors (cement, steel, labor, etc.).
Date: 14th June 2025
In a significant move to boost the real estate sector, the federal government has proposed to completely abolish the Federal Excise Duty (FED) on the transfer of commercial properties, plots, and houses. This duty, currently ranging up to 7%, is expected to be scrapped to lessen the burden on the construction sector.
The government plans to eliminate FED on property transactions, a move that could stimulate economic growth and create employment opportunities in the construction sector.
To encourage mortgage financing for low-cost housing, a tax credit is being introduced for houses up to 10 marlas and flats of 2,000 square feet.
The government aims to promote mortgage financing and introduce a comprehensive mechanism to support this initiative.
The abolition of FED is expected to make property purchases more affordable, potentially leading to increased demand and activity in the real estate market.
The move could stimulate economic growth, create employment opportunities, and attract investment in the construction.
The Federal Excise Duty on property transactions was introduced to regulate property transactions and ensure proper taxation. However, the government has now decided to scrap this duty to boost the real estate sector.
Date: 12th June 2025
The federal government has announced a major initiative to address Pakistan's housing shortage by allocating Rs 5 billion in the budget for FY26 for a mark-up subsidy under a low-cost housing scheme. This scheme, to be launched in collaboration with the State Bank of Pakistan (SBP), aims to enable individuals to build homes through affordable credit.
The government will provide a subsidy on the mark-up rates for homebuyers, making it easier for them to purchase or construct homes.
The scheme will be launched in partnership with the State Bank of Pakistan, ensuring a smooth and efficient process for homebuyers.
The scheme aims to provide affordable credit options to individuals, enabling them to build homes without financial strain.
Date: 24th January 2025
The Punjab Excise and Taxation Department has issued a notification regarding reforms in property tax.
Under the reforms, the future property tax will be determined as per the value given in the DC table.
Exempted property residential house and Tax exempted plot in pakistan which worth up to Rs 50 lakh have been declared exempt from tax. Existing taxpayers will not have to pay any additional tax this financial year, while new taxpayers will have to pay only 25 percent of their total tax this year.
The DG Excise and Taxation further explained that the facility of self-assessment is being provided to taxpayers to estimate their tax liability themselves.
Through this system, taxpayers will be able to easily estimate their tax liability according to the value of their property for property tax exemption.