SBP orders banks to tap informal income data for PM Housing Loans

June 18, 2026 (MLN): The State Bank of Pakistan (SBP) ordered commercial banks and microfinance institutions to utilize existing proxy models to assess the income of applicants applying for credit under the prime minister’s low-cost housing initiative. 

Lenders must deploy the same informal income estimation models developed in 2021 for the "Wazir-e-Azam's Apna Ghar Program," the central bank said in a circular.

The directive applies to all commercial banks, development finance institutions, and microfinance banks operating in the country.

The move aims to streamline credit underwriting for a vast pool of undocumented workers and informal earners who lack formal salary slips or tax returns, traditionally a major hurdle for mortgage expansion in the South Asian nation. 

This push ensures the frameworks are uniformly applied to the government's flagship housing program to accelerate loan processing. 

Chief executives of all financial institutions are advised to immediately disseminate the instructions across their branch networks and dedicated housing finance teams.

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