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Rs3.5m loan cap limits housing scheme appeal | The Express Tribune

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Rs3.5m loan cap limits housing scheme appeal | The Express Tribune



KARACHI:

Commercial banks have received a lukewarm response from the public to the government’s recently relaunched housing finance scheme, largely due to the limited size of financing on offer compared to prevailing property prices, particularly in major urban centres, market participants said.

In an effort to address Pakistan’s widening housing deficit, the government allocated a subsidy of Rs5 billion for the current financial year. Subsequently, the State Bank of Pakistan (SBP) rolled out a subsidised housing finance scheme that allows a maximum loan of Rs3.5 million for the purchase of housing units and plots, as well as for the construction and renovation of residential properties. However, banking, real estate and construction experts argue that the current financing cap is misaligned with ground realities, where even small apartments in large cities such as Karachi, Lahore and Islamabad are priced well above the scheme’s ceiling. As a result, banks have seen limited uptake, undermining the scheme’s broader objective of boosting home ownership and stimulating construction-led economic growth.

Experts are urging the government and the SBP to revisit the policy framework and introduce a more customer-friendly structure that reflects market prices and the needs of middle-income households. They also stress the importance of pairing housing finance reforms with a broader investment-friendly strategy to revive the construction sector, a key driver of employment and allied industries. Rafia Lakhani, a construction design and management expert, said the government should actively encourage foreign developers with experience in low-cost housing to invest in Pakistan. “The housing deficit has surged beyond 12 million units nationwide. Addressing this challenge requires not only financing but also modern construction techniques and efficient urban planning,” she said.

Lakhani noted that in many developed economies, vertical housing projects are designed with climate-resilient exteriors and space-optimised interiors to maximise capacity within limited urban land. “Adopting innovative, low-cost and climate-friendly construction models can simultaneously reduce the housing shortage and help Pakistan adapt to extreme weather events and natural calamities,” she added.

Affordability remains a critical constraint. According to the latest data from the World Population Review, Pakistan’s housing affordability index has declined to 0.4 from 0.5, indicating a sharp deterioration in affordability amid rising property prices, elevated mortgage rates and a persistent shortage of housing units. The report places Pakistan below regional peers, with Bangladesh posting an affordability index of 0.7 and India at 0.8. Industry stakeholders believe that without a substantial increase in financing limits, the current scheme will fail to gain momentum. Ibrahim Amin, Chairman of TriStar International Consultants, a real estate valuation and engineering firm, said the SBP should enhance the loan ceiling under the “Mera Ghar Mera Ashiana” scheme and allow greater collaboration between banks and developers to launch affordable housing projects within cities and in peri-urban areas.

“As the housing deficit grows every year, demand for property has increased, pushing up land and construction costs. This has effectively priced out a large segment of the population from even small housing units in major cities,” Amin said. In contrast, he noted that demand remains subdued in smaller cities due to limited employment opportunities, inadequate healthcare and education facilities, and weak urban infrastructure. Amin argued that raising the financing limit to Rs10 million would materially change the scheme’s impact. “With a higher loan cap, a significant portion of the middle class and overseas Pakistanis would be able to acquire decent housing. This would not only improve living standards but also trigger a construction boom, generating employment and supporting overall economic growth,” he said.

Market participants point out that Pakistan has already witnessed the potential of subsidised housing finance in the past. In October 2020, the SBP introduced a subsidised markup housing finance scheme for the first time, structured across three income categories. After several revisions, the initiative gained rapid traction, with banks receiving financing applications amounting to Rs514 billion within just one and a half years.

Under that earlier scheme, borrowers could access financing of up to Rs10 million at subsidised markup rates ranging from 5% to KIBOR plus 2.5%, with repayment tenures of up to 20 years. The programme was widely credited with reviving construction activity and increasing formal mortgage penetration in a market historically dominated by cash transactions.

The scheme was later discontinued by the subsequent government, citing elevated policy rates, fiscal constraints and a shortage of funds to sustain markup subsidies. In September 2025, the current government relaunched the housing finance initiative, but with a sharply reduced financing limit, which experts say has diluted its effectiveness.



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Market cap of six top-10 firms jump Rs 63,478 crore

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Market cap of six top-10 firms jump Rs 63,478 crore


New Delhi: The combined market valuation of six of India’s top-10 most valued companies rose by Rs 63,478.46 crore last week, with Larsen & Toubro and State Bank of India emerging as the biggest gainers. The broader market also ended the week on a positive note, as the 30-share BSE Sensex advanced 187.95 points, or 0.22 per cent.

Among the gainers, Larsen & Toubro saw its market capitalisation jump by Rs 28,523.31 crore to Rs 6,02,552.24 crore. State Bank of India added Rs 16,015.12 crore, taking its total valuation to Rs 11,22,581.56 crore. The market value of HDFC Bank climbed by Rs 9,617.56 crore to Rs 14,03,239.48 crore. Similarly, Life Insurance Corporation of India gained Rs 5,977.12 crore, pushing its valuation to Rs 5,52,203.92 crore.

Bajaj Finance also witnessed an increase in its market capitalisation by Rs 3,142.36 crore to Rs 6,40,387 crore. However, not all companies ended the week on a positive note. The market capitalisation of Bharti Airtel declined sharply by Rs 15,338.66 crore to Rs 11,27,705.37 crore.


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ICICI Bank also saw its valuation fall by Rs 14,632.10 crore to Rs 9,97,346.67 crore. The mcap of Infosys dropped by Rs 6,791.58 crore to Rs 5,48,496.14 crore, while Tata Consultancy Services lost Rs 1,989.95 crore, bringing its valuation down to Rs 9,72,053.48 crore.

The most-valued company in the country include HDFC Bank, Bharti Airtel, State Bank of India, ICICI Bank, Tata Consultancy Services, Bajaj Finance, Larsen & Toubro, Life Insurance Corporation of India, and Infosys in the ranking of the top-10 most valued firms.

Meanwhile, commenting on Nifty technical outlook, experts said that from a levels perspective, 25,800 stands as the immediate resistance, followed by 26,000 and 26,200. “On the downside, key supports are located at 25,300 and 25,100. A decisive break below 25,000 could increase downside momentum and accelerate corrective pressure,” an analyst stated.



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PM Modi warns against ‘Digital Arrest’ scams, Urges citizens to keep KYC updated

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PM Modi warns against ‘Digital Arrest’ scams, Urges citizens to keep KYC updated


New Delhi: In his latest Mann Ki Baat address to the nation, Prime Minister Narendra Modi urged citizens to stay vigilant against growing digital scams that target unsuspecting users — especially those involving fraudulent claims of digital arrests or legal actions.

The Prime Minister also highlighted the importance of keeping Know Your Customer (KYC) information up to date across financial and digital platforms to avoid becoming a victim of fraud and to ensure seamless access to essential services.

What Are Digital “Arrest” Scams?


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Digital arrest scams are a type of online fraud where criminals send messages — typically through SMS, email or messaging apps — claiming that the recipient has been “digitally arrested” or faces some legal trouble. These messages often include:

Fake links

Threatening language

Instructions to click or respond immediately

Once a victim interacts with the link, attackers can steal personal data, banking information, or install malware on the device. PM Modi warned that such scams are increasing in frequency, and citizens should be wary of unexpected messages that create panic or urgency.

Why Keeping KYC Updated Matters

KYC — short for Know Your Customer — is a process used by banks, telecom companies, digital payment apps and financial institutions to verify a person’s identity. Updated KYC records help:

Prevent fraud and identity theft

Enable secure access to banking and financial services

Ensure government welfare and subsidy schemes reach the right beneficiaries

The Prime Minister reminded people that keeping KYC details updated makes it harder for fraudsters to misuse personal information and easier for individuals to access services without interruption.

Tips to Avoid Digital Scams

PM Modi shared practical advice for all citizens to protect themselves online:

Don’t click on suspicious links — especially from unknown senders or unexpected messages.

Verify messages claiming legal issues — contact official authorities instead of reacting to urgent claims.

Use secure apps and websites — check URLs carefully and only use trusted platforms.

Regularly update passwords and security settings — avoid sharing OTPs or passwords with anyone.

The emphasis was on caution and common sense — an informed user is a safer user.

Broader Digital Awareness

Digital scams are not limited to arrest threats. Other common fraud tactics include:

Fake investment or win-money schemes

Fraudulent job offers

Phone call impersonations

Fake customer care messages

By staying alert and informed, citizens can spot red flags and report suspicious activity swiftly.

PM’s Message on Digital Safety

In his address, the Prime Minister emphasized that the digital revolution — from online banking to mobile payments and e-commerce — has brought tremendous convenience, but it also requires responsible use. While technology empowers users, it also opens opportunities for misuse if proper precautions aren’t taken.

Citizens were encouraged to educate family members, especially the elderly or less digitally fluent, about common scam patterns and digital safety measures.

Keep KYC Status Current

Updating your KYC might feel like a small administrative task, but PM Modi highlighted it as a key defense against fraud. Many services — such as bank accounts, mobile connections, insurance policies, mutual funds, and digital wallets — require up-to-date KYC to function smoothly.

Failing to update KYC can lead to:

Account blocks or freezes

Inability to receive government transfers or benefits

Greater risk of identity misuse

Regularly checking KYC status and updating it when required protects both your financial accounts and digital credibility.

The Bottom Line

In his Mann Ki Baat message, Prime Minister Narendra Modi delivered a simple but powerful point: stay alert, stay informed, and keep your digital and financial details updated. In an era where scams evolve rapidly, proactive citizens are the first line of defense.

By understanding common threats and following basic security practices — such as avoiding suspicious links and maintaining updated KYC — Indians can enjoy the benefits of digital connectivity without falling victim to fraud.



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Key social issues identified in Guernsey charity report

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Key social issues identified in Guernsey charity report



Each year, Citizens Advice selects social policy areas for analysis based on its clients’ issues.



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