Просмотр новости
Найдите то, что Вас интересует
Спутники
РН
SpaceX
Роскосмос
NASA
СпутникиРНSpaceXРоскосмосNASAPakistan’s housing challenge is commonly presented as a shortage of homes, but the issue becomes clearer when viewed against the country’s population.
With nearly 259 million people, Pakistan requires approximately 41.1 million housing units, based on the Pakistan Bureau of Statistics (PBS) 2023 Census average household size of 6.3 persons. However, the Seventh Digital Population and Housing Census records only 38.34 million existing housing units, resulting in a quantitative shortage of approximately 2.77 million homes.
The challenge extends beyond this numerical deficit. Of the existing housing stock, 32.5% consists of ‘kacha’ or ‘semi-pakka’ structures. After accounting for these sub-standard dwellings, Pakistan’s stock of durable housing falls to approximately 25.9 million units, resulting in an estimated deficit of 15.23 million acceptable homes. Rather than translating into widespread homelessness, this gap is largely absorbed through overcrowded housing, shared family residences, incremental self-construction and informal settlements (katchi abadis), illustrating that Pakistan’s housing challenge is not only about the number of homes available but also their quality, safety, sanitation and suitability for long-term habitation.
Pakistan’s demographic profile reinforces this demand. More than 60% of the population is below the age of 30, representing a large pipeline of future first-time homebuyers. Urbanisation, population growth and continued household formation are expected to sustain housing demand over the coming decades. Yet despite these structural drivers, formal mortgage finance remains one of the least developed segments of Pakistan’s financial sector.
The contrast becomes evident when viewed internationally. Outstanding mortgage finance in Pakistan accounts for only 0.25–0.30% of gross domestic product (GDP), compared with approximately 5.1% in the Philippines, 10–11% in India, 12.2% in Indonesia, and 30–40% in Malaysia.
For an economy where housing contributes significantly to construction activity, employment, manufacturing and financial sector development, the relatively small mortgage market indicates that a substantial portion of housing demand continues to be met outside the formal housing finance system.
Housing affordability is determined not only by financing rates but also by household incomes, financing tenure, property prices and repayment capacity. It remains one of the defining characteristics of Pakistan’s housing market. Purchasing a Rs10 million home with a typical 20% down payment requires an upfront contribution of Rs2 million, while financing the remaining amount results in a monthly installment of approximately Rs106,290.
Construction costs further influence affordability, with increases in the prices of cement, steel, labour and transportation contributing to higher residential property values. Changes in monetary policy have also influenced financing costs, affecting the affordability of long-term mortgage borrowing over time.
The characteristics of potential borrowers shape the housing finance market. According to the PBS Economic Census 2024, only 9.39% of Pakistan’s population holds a bachelor’s degree or higher. While educational attainment is not a measure of creditworthiness, it provides context for broader levels of financial literacy and familiarity with long-term financial products. Consequently, many salaried households that may satisfy banks’ eligibility criteria do not pursue mortgage finance because they are unfamiliar with available financing options or assume they do not qualify.
Mortgage lending differs fundamentally from most other forms of consumer finance because it is secured against immovable property and extends over long repayment periods. Lending decisions depend not only on a borrower’s repayment capacity but also on the quality and legal certainty of the underlying collateral.
Property ownership records, title verification and documentation therefore remain central to mortgage underwriting. Digitalisation of land records and improvements in property registration can strengthen transparency, although fragmented documentation and informal ownership structures continue to influence mortgage processing and credit assessment.
Recent developments reflect gradual momentum in Pakistan’s housing finance market. Outstanding housing finance reached approximately Rs251 billion and Rs267 billion in May and June, representing month-on-month (MoM) growth of around 6.4%. The federal government has also introduced the Wazir-e-Azam Apna Ghar Programme (“Ghar Ho Toh Apna”), providing eligible borrowers housing finance of up to Rs10 million with a repayment tenure of up to 20 years, a fixed rate of 5% for the first 10 years, and a floating rate of one-year KIBOR plus 3% thereafter. For a Rs10 million financing facility, the monthly installment during the initial 10-year period is approximately Rs52,796, significantly improving affordability over traditional house financing.
The analysis suggests the nation’s housing challenge extends beyond the availability of housing units to the broader housing finance ecosystem. Recent growth in mortgage lending, together with policy initiatives, reflects encouraging momentum, but formal housing finance continues to lag behind the country’s growing demand for homeownership.
Building on recent progress through continued collaboration among key stakeholders including regulators, financial institutions, development finance institutions, developers and capital market participants, alongside improvements in affordability, borrower awareness and property documentation, can further strengthen Pakistan’s housing finance market and expand access to affordable homeownership.
The article does not necessarily reflect the opinion of Business Recorder or its owners.
Pakistan’s housing challenge is commonly presented as a shortage of homes, but the issue becomes clearer when viewed against the country’s population.
With nearly 259 million people, Pakistan requires approximately 41.1 million housing units, based on the Pakistan Bureau of Statistics (PBS) 2023 Census average household size of 6.3 persons. However, the Seventh Digital Population and Housing Census records only 38.34 million existing housing units, resulting in a quantitative shortage of approximately 2.77 million homes.
The challenge extends beyond this numerical deficit. Of the existing housing stock, 32.5% consists of ‘kacha’ or ‘semi-pakka’ structures. After accounting for these sub-standard dwellings, Pakistan’s stock of durable housing falls to approximately 25.9 million units, resulting in an estimated deficit of 15.23 million acceptable homes. Rather than translating into widespread homelessness, this gap is largely absorbed through overcrowded housing, shared family residences, incremental self-construction and informal settlements (katchi abadis), illustrating that Pakistan’s housing challenge is not only about the number of homes available but also their quality, safety, sanitation and suitability for long-term habitation.
Pakistan’s demographic profile reinforces this demand. More than 60% of the population is below the age of 30, representing a large pipeline of future first-time homebuyers. Urbanisation, population growth and continued household formation are expected to sustain housing demand over the coming decades. Yet despite these structural drivers, formal mortgage finance remains one of the least developed segments of Pakistan’s financial sector.
The contrast becomes evident when viewed internationally. Outstanding mortgage finance in Pakistan accounts for only 0.25–0.30% of gross domestic product (GDP), compared with approximately 5.1% in the Philippines, 10–11% in India, 12.2% in Indonesia, and 30–40% in Malaysia.
For an economy where housing contributes significantly to construction activity, employment, manufacturing and financial sector development, the relatively small mortgage market indicates that a substantial portion of housing demand continues to be met outside the formal housing finance system.
Housing affordability is determined not only by financing rates but also by household incomes, financing tenure, property prices and repayment capacity. It remains one of the defining characteristics of Pakistan’s housing market. Purchasing a Rs10 million home with a typical 20% down payment requires an upfront contribution of Rs2 million, while financing the remaining amount results in a monthly installment of approximately Rs106,290.
Construction costs further influence affordability, with increases in the prices of cement, steel, labour and transportation contributing to higher residential property values. Changes in monetary policy have also influenced financing costs, affecting the affordability of long-term mortgage borrowing over time.
The characteristics of potential borrowers shape the housing finance market. According to the PBS Economic Census 2024, only 9.39% of Pakistan’s population holds a bachelor’s degree or higher. While educational attainment is not a measure of creditworthiness, it provides context for broader levels of financial literacy and familiarity with long-term financial products. Consequently, many salaried households that may satisfy banks’ eligibility criteria do not pursue mortgage finance because they are unfamiliar with available financing options or assume they do not qualify.
Mortgage lending differs fundamentally from most other forms of consumer finance because it is secured against immovable property and extends over long repayment periods. Lending decisions depend not only on a borrower’s repayment capacity but also on the quality and legal certainty of the underlying collateral.
Property ownership records, title verification and documentation therefore remain central to mortgage underwriting. Digitalisation of land records and improvements in property registration can strengthen transparency, although fragmented documentation and informal ownership structures continue to influence mortgage processing and credit assessment.
Recent developments reflect gradual momentum in Pakistan’s housing finance market. Outstanding housing finance reached approximately Rs251 billion and Rs267 billion in May and June, representing month-on-month (MoM) growth of around 6.4%. The federal government has also introduced the Wazir-e-Azam Apna Ghar Programme (“Ghar Ho Toh Apna”), providing eligible borrowers housing finance of up to Rs10 million with a repayment tenure of up to 20 years, a fixed rate of 5% for the first 10 years, and a floating rate of one-year KIBOR plus 3% thereafter. For a Rs10 million financing facility, the monthly installment during the initial 10-year period is approximately Rs52,796, significantly improving affordability over traditional house financing.
The analysis suggests the nation’s housing challenge extends beyond the availability of housing units to the broader housing finance ecosystem. Recent growth in mortgage lending, together with policy initiatives, reflects encouraging momentum, but formal housing finance continues to lag behind the country’s growing demand for homeownership.
Building on recent progress through continued collaboration among key stakeholders including regulators, financial institutions, development finance institutions, developers and capital market participants, alongside improvements in affordability, borrower awareness and property documentation, can further strengthen Pakistan’s housing finance market and expand access to affordable homeownership.
The article does not necessarily reflect the opinion of Business Recorder or its owners.
| # | Наименование новости | Тональность | Информативность | Дата публикации |
|---|---|---|---|---|
| 1 | Youth without opportunity | 0 | 10.34 | 29-08-2026 |
| 2 | Pakistan’s infrastructure needs a new risk-financing architecture | 0 | 8.06 | 27-08-2026 |
| 3 | The water paradox: drowning in floods, dying of thirst | 0 | 6.08 | 27-08-2026 |
| 4 | The digital divide limiting opportunities in Pakistan | 0 | 6.79 | 18-08-2026 |
| 5 | The illusion of scale in higher education | 0 | 12.46 | 31-08-2026 |
| 6 | Living longer is a blessing - but can we afford it? | 0 | 6.24 | 12-09-2026 |
| 7 | Pakistan doesn’t have a talent shortage. It has a broken hiring system | 0 | 6.7 | 04-09-2026 |
| 8 | Pakistan's payments infrastructure is the next test | 0 | 9.6 | 10-08-2026 |
| 9 | Farming needs a digital push | 0 | 7.54 | 29-09-2026 |
| 10 | The government that talks to itself | 0 | 6.08 | 26-09-2026 |