Islamabad: Federal Minister for Planning, Development, and Special Initiatives, Ahsan Iqbal, announced on Monday that the government is prepared to offer 100% guarantees to banks to secure their capital for affordable housing finance schemes aimed at benefiting common citizens.
The announcement was made during a high-level meeting focused on addressing the critical challenges in long-term housing finance and exploring viable policy models for low-cost housing in Pakistan. The meeting was attended by key officials, including Planning Secretary Awais Manzoor Sumra, Vice Chancellor of PIDE Nadeem Javed, the Governor of the State Bank of Pakistan, CEOs of private banks, and representatives from the Pakistan Mortgage Refinance Company (PMRC) and National Bank of Pakistan (NBP).
Iqbal highlighted the importance of ensuring affordable housing options for Pakistan’s population, stressing the need for accessible housing finance that could alleviate the housing crisis in the country. “Owning a house should not remain a distant dream for the salaried class,” he remarked. He also noted that, unlike the auto-leasing model, a similar framework for housing finance had yet to be fully explored in Pakistan.
During the meeting, international best practices and successful mortgage models from countries such as Singapore, South Africa, Turkey, Bangladesh, Brazil, and India were reviewed. The discussions focused on developing a housing finance framework suited to Pakistan’s socio-economic landscape.
The minister proposed that the government guarantees 100% of the bank’s capital for housing finance schemes, which would make it easier for banks to lend to low- and middle-income groups. This initiative aims to support the creation of affordable housing for the public, particularly for smaller homes like three-marla units, while also enabling banks to develop independent frameworks for financing larger properties.
“Successful housing finance models exist worldwide, and we must adapt them to Pakistan’s context,” said Iqbal, urging private banks to adopt a market-based model for housing finance without fear, assuring them of full government support.
Iqbal further emphasized the government’s commitment to facilitating this initiative by providing guarantees and regulatory support. He also proposed targeted government subsidies for smaller housing units and called on banks to independently design financing models for larger units.
The minister pointed out that long-term housing finance is one of the biggest barriers to affordable housing in Pakistan, acknowledging the substantial progress made in 2017-18, which was disrupted by political instability. He stressed that policy continuity is crucial for the success of housing projects, as disruptions often cost the public dearly.
The Planning Ministry’s proposed financial framework was presented by Member Infrastructure Waqas Anwar. The Punjab government is also launching its own housing rollout programme, and to streamline legal and regulatory aspects, the Planning Ministry plans to engage with Federal Minister for Law, Azam Nazeer Tarar.
Private banks have responded positively to the proposals, expressing their willingness to collaborate in designing a practical framework for affordable housing finance.
“This is not just a policy initiative—it is a national economic and social imperative,” concluded Ahsan Iqbal, highlighting that the government’s housing finance guarantee will be pivotal in transforming the country’s housing sector and supporting economic growth.
Samra Zulfiqar, a real estate analyst at Zameen.com, is passionate about finding projects that offer buyers the best returns. Her keen insights spotlight the market’s most promising opportunities.
