PM Imran Khan launches Roshan Apna Ghar scheme for overseas Pakistanis

Web DeskWeb Editor

27th Aug, 2021. 05:54 pm

Prime Minister Imran Khan has launched the Roshan Apna Ghar scheme to facilitate overseas Pakistanis to buy a house for themselves and their families in Pakistan, while urging the Pakistanis living abroad to invest in the product.

“After introduction of the Roshan Apna Ghar, the overseas Pakistanis will find it much easier to buy a housing unit in Pakistan for themselves or their loved ones either through their own savings or bank financing,” the premier said on Friday while addressing a ceremony in Islamabad.

According to a statement issued by the State Bank of Pakistan (SBP), the prime minister praised the efforts and hard work of the central bank and the government agencies in crossing another impressive milestone of $2 billion in deposits in the Roshan Digital Accounts (RDA).

He also lauded the SBP for developing an exclusive product, the Roshan Apna Ghar, to facilitate overseas Pakistanis in investing in the housing sector in Pakistan.

“The RDA has provided an excellent platform to the overseas Pakistanis to digitally connect to Pakistan’s banking system and meet their financial services needs in Pakistan,” he said

The premier expressed optimism that the Roshan Apna Ghar – an end-to-end digital process right from submission of application to the bank to disbursement of funds by banks – would facilitate overseas Pakistanis to buy a house for themselves and for their families in Pakistan.

“This [buying of properties] has been quite difficult for overseas Pakistanis due to a host of manual procedures, mandatory physical visits to Pakistan with long stay to complete the process and the hassle of trips to many offices,” he added.

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

Highlighting the performance of the Roshan Digital Account, he said the RDA is now a very 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.

“It took about eight months to cross the first major milestone of $1 billion whereas the next $1 billion were received in less than four months, which is indicative of the increasing momentum,” he said.

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

Complete information on the initiative as well as directions on how to avail it are available at the SBP portal. 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 as well that has been exclusively designed for those who do not already own a house and offers financing at economical rates starting from 3 percent.

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

Speaking on the occasion, Minister for Finance Shaukat Tarin said the innovation of the Roshan Digital Account has proved to be a huge success and instrumental in receiving substantial investment of over $1.4 billion in the Naya Pakistan Certificates (NPCs).

He lauded the introduction of the Roshan Apna Ghar by the SBP and said it is another splendid idea of the SBP and will attract substantial investment in the real estate sector by overseas Pakistanis.

He went on to add that both the NPCs and the Roshan Apna Ghar are here to achieve the greater goal of attracting investments by overseas Pakistanis, which are more sustainable and reliable.

He said that the Ministry of Finance with the help of the SBP will make every effort to introduce new avenues of investments for overseas Pakistanis. Under the Roshan Apna Ghar, two types of financing facilities are being offered.

The standard financing includes both lien-based and non-lien based financing.

In lien-based financing, the NRPs can obtain a house finance facility against lien on their RDA deposit balances or the Naya Pakistan Certificates.

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

Non-lien based financing is the typical housing finance offered against mortgage of the property to be purchased; banks may fund up to 85% of the property value for purchase or construction of house, and up to 30% of the property value for renovation of house.

House financing facility – under the Mera Pakistan Mera Ghar, government mark-up subsidy scheme – is also available for the 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 the financing amount, is also free.

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