Housing finance in Pakistan can be taken up to $3.8 billion: World Bank


WebDesk: According to a report issued by  World Bank IFC housing finance in Pakistan at 1 time was 0.3 percent of the gross national product while in South Asia this rate is up to 3.4 percent. Housing finance in Pakistan Government is generally only It was being given to the high class while the scope of  loan was limited to only a few big cities of the country.

Housing finance in Pakistan can be taken up to $3.8 billion: World Bank


Organization has divided the 26 cities of Pakistan with more than 300,000 population into 03 categories, in the 1st tier are big cities like  Karachi Lahore Islamabad in 2nd tier are medium cities like Gujranwala Multan & in the 3rd tier are small cities like Gwadar and Larkana. have been added. After that these cities are divided into upper class middle class & lower middle class.

According to the organization there are 360,000 customers in major cities of the country who can be given housing finance to build houses &  their total need is 2.78 billion dollars & 96,000 such customers in medium-sized cities. whose need for housing finance is about 740 million dollars. While in 3rd level 42 thousand people need housing finance of 330 million $ dollars.

According to the report the middle class in Pakistan is divided into three segments upper middle, middle middle : lower middle class total demand for housing finance of these 03 can be close to 3.66 billion $ dollars.

Report further states that Pakistan population will double between 2,300 & 40 at which time Pakistan needs 1 crore houses while the annual demand for houses is increasing by around 04 lakh.

Mentioning the challenges of housing finance  international organization says that the housing options for middle class are not according to their affordability while many legal complications also hinder the acquisition of land housing finance is also not available in the market while banks Due to limited resources & experience in providing housing finance housing finance in Pakistan suffers from problems.

In this regard the international organization has praised the work of the Central Bank & said that housing finance has been promoted to some extent by establishment of Pakistan Housing Mortgage Company & cheap loans for low income groups. Because of this the banks are quite appreciative which is now showing signs of improvement in housing finance.


IFC has been working for the betterment of housing finance in Pakistan since 2007 & will continue to do so in the future. To improve.

Along with easy access of housing finance to the public promotion of investment in housing finance companies expansion of real estate investment trusts mortgage insurance & green housing are their main goals.


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    Apart from this there are also commitments for further improvement in the laws of housing finance & housing finance companies implementation of the Real Estate Regulatory Authority Act.

    In addition the World Bank will continue to fund projects related to the development of housing finance.