Pakistan, June 12 -- The federal government has allocated Rs5 billion in the FY26 budget for a new low-cost housing scheme. This scheme will provide a mark-up subsidy on loans to make home financing easier. The government will work with the State Bank of Pakistan to launch the program soon, aiming to help more people afford homes.

Under this plan, the government will offer tax credits on profits paid for loans on houses up to 250 square yards or flats up to 2,000 square feet. This will reduce the cost of borrowing and encourage more citizens to build or buy affordable homes. The scheme targets middle and low-income families struggling with high loan costs.

Furthermore, the budget sets aside Rs1 billion as a subsidy for the Naya Pakistan...