Pakistan housing finance and economic initiatives

Pakistan is addressing housing affordability challenges caused by rising property prices outpacing household incomes. To mitigate these constraints, the government has engaged with the International Finance Corporation (IFC) and the World Bank Group to seek support for expanding housing finance and strengthening institutional frameworks. This effort aligns with the World Bank Group’s 2026–2035 Country Partnership Framework, which aims to mobilize significant annual funding for priority areas.

Building on these efforts, the government has established specific targets under the Prime Minister’s Apna Ghar scheme, aiming to provide housing finance for 125,000 residential units with a proposed lending volume of Rs700 billion. As of the latest reports, 71,690 loans worth Rs426 billion have been approved, with Rs76 billion disbursed to over 13,000 borrowers.

Complementary economic measures include the planned launch of a digital portal for small and medium-sized enterprises (SMEs) to improve access to bank financing and real-time credit monitoring. The government also intends to expand digital banking and digitize land records to facilitate easier loan applications and improve coordination among financial institutions.