What is the Naya Pakistan Housing Scheme Loan?

Is it a numbers game when it comes to housing? It appears to be more than that, particularly in underdeveloped and developing countries such as Pakistan and other third-world countries, where land availability has remained constant since the beginning of time, but population growth and basic demands for habitat, food, and clothing, all of which are dependent on this same always available land, are increasing, not by days, but by moments. As a result, a country’s geographical area remains constant but the demand for food, clothes, and housing continues to rise owing to population expansion. In 1900, the world’s population was estimated to be over 4 billion people; currently, it is estimated to be 7.67 billion people.

Purpose of Naya Pakistan Housing Scheme Loan?

Pakistan’s population grew from 58 million people in 1970 to well over 200 million people in 2019. By the turn of the century, it is predicted to have grown to 375 million people. Pakistan’s land area remained unchanged at 882,000 square kilometers. Pakistan’s land area is the same as it was in 1970 or earlier, at 882,000 square kilometers. Pakistan’s housing shortfall is estimated to be between 11 and 12 million people. As a result, the Prime Minister set a lofty goal for his government: to reduce the annual shortage by 1 million people per year, or 5 million (50 lakhs) for the course of its five-year mandate. A difficult target, to be sure, but a difficult situation necessitates even more difficult handling. As a result, the Prime Minister has set a very difficult, and seemingly unattainable, target for his team and lieutenants to fight the situation with all their might and proclivity, to face the dire situation and achieve the seemingly impossible target. The Prime Minister’s Task Force is fully prepared to meet this challenge and achieve the goal. And, as the Prime Minister frequently says, the outcome is in the hands of Almighty Allah!

Goals of Naya Pakistan Housing Scheme Loan?

Everyone has access to housing.

The following are the areas where the Prime Minister’s Task Forces should focus in order to facilitate or make available 10 lac housing units every year (50 lac over a 5-year period):

4 lac units per year in rural areas.

2 lacs units per year in peri-urban areas

4 lac units per year in urban areas.

It is critical to remember that, for the first time in Pakistan, policymakers in the capital city of Islamabad are proactively thinking, talking, and planning for housing in Pakistan’s rural areas, which account for nearly 68 percent of the country, or two-thirds of the country, and have long been conveniently ignored. Along with the core issue of housing shortages in urban metropolitan areas, the Prime Minister’s housing initiative priorities rural and peri-urban housing difficulties. In terms of income groups, the PM Housing Program focuses on lower-middle and low-income housing as well as housing challenges in the bottom-of-the-pyramid. Slum and Katchi-Abadi improvements receive special attention in this program, with the goal of addressing the age-old issue of inhabitants’ title/ownership concerns and their eligibility for financial support, which may require verification of real estate ownership at times. The goal of 10 lac dwelling units each year was set to be attained in the following way:

1. Housing for the Low-Income:

4 lacs per year (40 percent of target) in rural areas-Achieving suitable housing/habitat

The most expensive option is Rs 5 lacs.

The maximum loan amount is Rs. 4 lacs.

Proposed Supply-Side Delivery Channels: Community based self-development

Proposed Funding-Side Delivery Channels: ZTBL, Commercial Banks, and Eligible Non-Governmental Organizations (NGOs).

2. Peri-Urban Area

2 lacs per year for peri-urban housing (20% of target)—slum rehabilitation, urban renewal, and regeneration

Capacity for cost: up to Rs. 15 lakhs

Capacity for Financing: Up to Rs 12.5 lakhs

Supply Proposal

-Side Delivery Channels: Developers in the Private Sector Finance

-Side Delivery Channels: Banks and Small and Medium-Sized Finance Institutions

3. Urban areas

4 lacs/year (40 percent of target) —Mixed Habitat Development by the Private Sector/Developers

The maximum cost is Rs 30 lakh.

LTVs of up to 90:10 are possible.

Private-sector developers are proposed as supply-side delivery channels.

Proposed Funding-Side Delivery Channels: Banks, Savings and Loan Institutions (SHFIs).

4. Housing for the Upper Middle Class

According to market demand,

The maximum cost is Rs 30-100 lakhs.

LTVs of up to 90:10 are possible.

Private-sector developers are proposed as supply-side delivery channels.

Finance-Side Delivery Proposal Banks and small and microfinance institutions (SMFIs) are two types of channels.

Sana

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