PM Imran launches 'Roshan Apna Ghar', terms scheme a game changer

Prime Minister Imran Khan has termed the State Bank of Pakistan's (SBP) Roshan Apna Ghar initiative a game-changer, saying that the scheme can help the country attract substantial investment from overseas Pakistanis.

Under the Roshan Apna Ghar scheme, two types of financing facilities are being offered. First is the standard model in which both lien-based and non-lien-based financing is available.

In lien-based financing, non-resident Pakistanis (NRP) can obtain house finance facilities against a lien on their Roshan Digital Account (RDA) deposit balances or Naya Pakistan Certificates.

Banks can finance up to 100% of the property value for the purchase or construction of a house. For the renovation of the house, financing is capped at 40% of the property value.

Non-lien-based financing is the typical housing finance offered against the mortgage of the property to be purchased.

Banks may fund up to 85% of the property value for purchase or construction of a house, and up to 30% of the property value for the renovation of a house.

Over 8 million overseas Pakistanis have money as much as Pakistan's entire GDP: PM Imran Khan

Second, the house financing facility under Mera Pakistan Mera Ghar (Government Mark-up Subsidy Scheme) is also available for RDA holders under the Roshan Apna Ghar product as per already defined criteria under respective tiers.

In this case, the financing rates applicable to the Mera Pakistan Mera Ghar scheme would apply. Insurance of the property, up to the extent of financing amount, is also free.

Addressing the launch ceremony of the initiative, the premier said that overseas Pakistanis are the country's biggest asset.

The premier lamented that Pakistan has not utilised this asset in the past, saying no one worked on providing the necessary environment and initiatives to attract investment from overseas Pakistanis.

SBP launching ‘Roshan Apna Ghar’ scheme for expats

Talking about the overseas Pakistanis' potential to contribute to the country's economy, Khan said that the Roshan Apna Ghar initiative is only the "tip of the iceberg".

"Over 8 million overseas Pakistanis have money as much as Pakistan's entire GDP," he said. "We have incentivised the remittances but the actual investment is to create an environment to attract professional overseas Pakistanis here.

"We are trying to end practices that hinder them from coming here. It is taking some time as our system is not receptive to it," he added.

Terming corruption as the biggest issue hindering foreign investment, Khan said more overseas Pakistanis will invest in the country once "we have dealt with the issue of corruption".

"We are trying to improve the ease of business. We have made many improvements and will bring more changes," he said.

The premier said that every overseas Pakistani wants to build a house in Pakistan, but they face many difficulties. "This is the first time that they will have an assurance that their investment will not go in vain because the banks are the guarantors."

"We will facilitate our overseas Pakistanis in every possible way," he said.

In his welcome address, SBP Governor Dr Reza Baqir thanked the prime minister for resolve to integrate the overseas Pakistani community with the country’s economy.

PM pledges incentives for overseas Pakistanis

Highlighting the performance of the RDA, he said it is now a well-established brand, which has so far connected over 215,000 expats with the country’s banking system and attracted over $2,050 million since its launch in September last year.

He said it took about 8 months to cross the first major milestone of $1 billion whereas the next $1 billion were received in less than 4 months, which is indicative of the increasing momentum.

Introducing the new product, Dr Baqir said that the Roshan Apna Ghar is an initiative of the SBP for NRPs to buy, build or renovate their homes in Pakistan through their investment or bank financing.

Overseas Pakistanis will be able to complete their transaction completely remotely and digitally and their investment will be fully repatriable.

He elaborated that financing is available in both conventional and Shariah-compliant variants at attractive rates for a period of three to 25 years.

Through the Roshan Apna Ghar initiative, overseas Pakistanis will also be able to obtain financing under the Mera Pakistan Mera Ghar scheme of the government. This has been exclusively designed for those who do not already own a house and it offers financing at rates starting from 3 percent.

Dr Baqir emphasised that the SBP, with the support of all stakeholders, will continue to bring as much ease as possible for overseas Pakistanis.

Speaking at the occasion, Minister for Finance and Revenue, Shaukat Tarin, said that the RDA has proved to be a huge success and instrumental in receiving a substantial investment of over $1.4 billion in Naya Pakistan Certificates.