ISLAMABAD: Prime Minister Shehbaz Sharif has directed authorities to review the government’s housing finance scheme following concerns that its structure may conflict with the constitutional timeline for eliminating riba, The News reported, quoting officials.Sources said the prime minister sought a detailed briefing after a report by highlighted that the structure and timeline of the “Apna Ghar Programme” could extend interest-based lending beyond January 1, 2028 — the deadline set under the 26th Constitutional Amendment for transitioning to a riba-free financial system.Officials have been asked to assess whether the scheme’s design, featuring a five-year loan disbursement plan and 20-year repayment periods, aligns with constitutional requirements or requires restructuring.Under the programme, loans of up to Rs10 million are being offered with a fixed 5% markup for the first 10 years, followed by market-based rates. The government has allocated Rs321 billion for the first year to finance 50,000 housing units, with total financing projected at Rs3.2 trillion over five years.According to sources, the review will focus on the legal and financial implications of continuing interest-based lending during the transition period leading up to 2028, as well as the feasibility of converting the scheme into a Shariah-compliant model.The development signals the government’s recognition of the sensitivity of the issue, particularly in light of constitutional obligations relating to the elimination of riba.At the launch ceremony earlier this week, the prime minister had described the housing initiative as a major step towards providing affordable shelter to low-income groups and stimulating economic activity across multiple sectors.Deputy Prime Minister Ishaq Dar and other senior members of the economic team are also expected to be part of the consultative process.The outcome of the review could have wider implications for government-backed financing schemes, particularly those relying on conventional banking structures, as Pakistan moves towards implementing its constitutional commitment to eliminate interest-based systems.Officials indicated that input is being sought from financial regulators, banking experts and legal authorities, and a report is expected to be submitted to the prime minister on an urgent basis.
