ISLAMABAD: Pakistani officials told Prime Minister Shehbaz Sharif a mortgage finance ecosystem is being developed to attract foreign investment in the housing sector to boost economic activity and job creation, the PM Office said on Thursday.
The housing sector is a key economic pillar of the country, though it faces a widening supply–demand gap due to rising construction costs and declining affordability.
Low mortgage penetration and high interest rates continue to limit formal financing options.
Recent government estimates place the national housing deficit in the millions of units, with low- and middle-income households struggling to access formal mortgage financing.
“There is vast potential for investment in the country’s housing sector, and barriers hindering investment will be removed to fully tap into it,” the prime minister said during the meeting, according to a statement circulated by his office.
“The protection of investments by foreign investors and overseas Pakistanis in the sector will be ensured,” he continued.
Sharif said home ownership was the right of every citizen, adding that providing loans on easy terms for the purpose was his administration’s top priority.
He said a low-cost financing system for affordable housing projects had been implemented by the government, and banks would be assigned targets in its next phase.
The prime minister directed authorities to formulate a practical strategy spanning all provinces along with Azad Jammu and Kashmir and Gilgit-Baltistan.
“A comprehensive developer-led financing system for the housing sector is also being formulated,” he said.
Last month, the Economic Coordination Committee (ECC) of the Cabinet approved revised features of a government-backed low-cost housing finance scheme, raising the loan ceiling to Rs10 million ($35,714) and introducing a subsidized five percent end-user rate in a bid to ease access to home ownership.
