Regulatory Alerts2026-03-17 | SH&SFD Circular Letter No. 01 of 2026Added · Updated
Markup Subsidy and Risk Sharing Scheme for Affordable Housing Finance
The Government of Pakistan has revised the features of the Markup Subsidy and Risk Sharing Scheme for Affordable Housing Finance, limiting housing units to 10 Marla or 2720 sq. ft for houses and 1500 sq. ft for flats, with a maximum loan size of PKR 10 Million. The customer fixed pricing rate is adjusted to a flat 5%, requiring Participating Financial Institutions to adjust the rate on previously disbursed loans from 8% to 5% to ensure uniformity. PFIs are instructed to disseminate these revised features through their branch networks and other channels.
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SH&SFD Circular Letter No. 01
Markup Subsidy and Risk Sharing Scheme for Affordable Housing Finance
March 17, 2026
8032
The Presidents/ Chief Executives
All Banks/HBFCL/MFBs
Dear Sir/Madam,
Markup Subsidy and Risk Sharing Scheme for Affordable Housing Finance
Please refer to SH&SFD Circular No. 03 of 2025 regarding the subject scheme.
Please be informed that the Government of Pakistan has made following changes in features of the subject scheme:
Parameter
Revised Feature
Size of Housing Unit
House of up to 10 Marla/2720 sq. ft Flat of up to 1500 sq. ft.
Maximum Loan size
Up to PKR 10 Million
Customer/end user fixed pricing
Flat 5%*
- To ensure uniformity, end user rate on loans already disbursed under the subject scheme at 8% will be adjusted to 5%.
Other features of the Scheme shall remain the same.
The Participating Financial Institutions (PFIs) are advised to take necessary measures for proper dissemination of revised features of the scheme through their branch network and other means.
Yours sincerely,
Najm-us-Saqib Shabbir Additional Director
Home — Circulars — SH&SFD Circular Letter No. 01
Markup Subsidy and Risk Sharing Scheme for Affordable Housing Finance
March 17, 2026