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Rate Hike Adds Pressure on Construction

ABAD Chairman Muhammad Hanif Gohar has expressed concern over the State Bank’s recent interest rate increase, urging a rate cut to support affordable housing and construction growth. He said higher rates could intensify pressure on construction and related industries, while rising prices of cement, steel bars and other building materials may increase costs and affect investment. Gohar called on the government and State Bank to adopt economic policies that control inflation.

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Major Projects

Private Operators to Manage Five Punjab Roads

The Punjab government has launched five road projects under the Punjab Public-Private Partnership Authority, transferring their management and operations to the private sector. The initiative is expected to generate Rs22 billion in provincial revenue. Digitally inaugurated by the chief minister, the projects include Muridke-Narowal Road (80km), Shakargarh-Narowal Road (33km), Faisalabad Ring Road (97km), Faisalabad-Sahianwala Road (52km) and Faisalabad-Samundri-Rajana Road (56km). Under the public-private partnership arrangement, private contractors will collect tolls through modern electronic toll plazas for seven years and handle road maintenance, repairs and rehabilitation. Four additional roads—Bahawalpur-Yazman (42km), Yazman-Ahmedpur East (43km), Raiwind-Changa Manga (28km) and Gajumata-Kasur (26km)—are also planned for transfer to the PPP model.

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Meezan Bank Approves Rs31.45bn Housing Finance

Meezan Bank has approved over Rs31.45 billion in housing finance across 4,424 applications under the government’s Wazir-e-Azam Apna Ghar Programme — Ghar Ho Tu Apna. The bank’s cumulative disbursements have crossed Rs4 billion, supporting around 650 families in their journey towards homeownership. Financing gained significant momentum in August 2026, when Meezan Bank disbursed approximately Rs2.2 billion in a single month, representing more than half of its total disbursements under the programme.

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Government Allows NBFCs to Join Prime Minister’s Apna Ghar Program

Access to the Prime Minister’s Apna Ghar Program has been expanded as eligible non-bank financial companies are now being allowed to participate in the low-cost housing finance scheme. The move is aimed at increasing outreach beyond traditional banks, while home financing is expected to be made more accessible for underserved borrowers across Pakistan.

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