Pakistan seeks IFC support to address property affordability

Pakistan’s property market is facing significant affordability challenges as rising housing prices outpace household incomes. In major urban centers such as Karachi, Lahore, Islamabad, and Multan, the gap between available financing and property costs is shaping market activity. While demand for essential housing remains steady, the luxury and high-priced segments face a shrinking pool of potential buyers.

To address these constraints, the Pakistani government has approached the International Finance Corporation (IFC) to seek support for expanding housing finance and strengthening the country’s institutional framework. Federal Economic Affairs Minister Ahad Cheema has engaged with representatives from the IFC and the World Bank Group regarding these efforts. Housing finance is a priority under the World Bank Group’s 2026–2035 Country Partnership Framework for Pakistan, which aims to mobilize up to $2 billion annually across various priority areas.

In specific regional markets, such as DHA Lahore, commercial and residential file rates continue to show varied trends. Commercial files in DHA Phase 6 and Phase 9 Prism remain highly sought after for their investment potential and rental yields. The overall stability and growth of the sector will likely depend on successful institutional reforms, changes in taxation, and the expansion of formal lending mechanisms.