AKHUWAT: Historic initiative by the prime minister for low-cost housing

Akhuwat Islamic Microfinance (AIM) is the implementing partner (with the Ministry of Housing and Works) providing Shariah-compliant housing finance facilities to deserving families for the construction of their homes.


The Prime Minister of Pakistan launched Low-Cost Housing Scheme in January 2020 in order to address the growing housing needs of homeless people across the country. This initiative is quite unique, as no precedent of the scheme at such a large scale is available in Pakistan.


Akhuwat Islamic Microfinance (AIM) was selected as the implementing partner (with Ministry of Housing and Works) through a competitive bidding process to provide Shariah-compliant house financing facilities to the deserving families for the construction of their houses.

Read More: Role of Banks in Mortgage Financing

The Govt. of Pakistan allocated and released PKR. 7 Billion in the form of revolving funds to AIM for the provision of a housing finance facility. The figure below illustrates the targets achieved by the scheme so far.

This initiative is receiving immense public support and appreciation; especially those who have already been provided with the housing finance facility and have shifted to their own houses.

Read More: Can Naya Pakistan Program prove a game changer in housing market?

In addition to this, Govt. of Pakistan has taken another initiative with an outlay of Rs. 1.5 trillion by the name of Kamyab Pakistan Program (KPP). The Finance Division of the Govt. of Pakistan mandated all commercial banks to provide credit/ funding facilities to several Microfinance Institutions (MFIs) for onward retail lending to beneficiaries for the provision of Low-Cost Housing Finance facilities. Being a reputable civil society organization, Akhuwat is also partnering with different banks in order to contribute towards this much-needed initiative.


This scheme will benefit a large number of people and provide them shelter. People who are forced to sleep on streets with no place to go will be able to build a home. Also, this initiative will help in uplifting the country’s economy by providing job opportunities to thousands of people related to the construction industry. AIM appreciates Naya Pakistan Housing & Development Authority (NAPHDA), Commercial banks, Government of Pakistan, Mr. Shaukat Tarin, Minister Finance, and Mr. Imran Khan, Prime Minister of Pakistan for these historic initiatives.

Read More: General Anwar Ali Hyder Chairman (NAPHDA): Unpacking The Low-Cost Housing Initiative

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