Pakistan’s housing finance sector received 25,304 loan applications by April 30, 2026, reflecting a gradual expansion in mortgage activity as the government pushes to increase access to affordable housing.
The report showed that 8,990 applications under various housing schemes were approved, while 2,612 were rejected. The total approved financing amounted to Rs37.154 billion.
It further stated that 13,792 applications are currently under process, while disbursements have been made against 1,845 applications. So far, Rs5.071 billion has been released under different housing finance initiatives.
Officials said implementation of government-backed housing schemes is gaining momentum as authorities seek to expand mortgage lending and improve housing affordability in the country.
The document noted that the cumulative housing finance portfolio of all banks in Pakistan stands at Rs246 billion since the country’s inception. As of March 31, 2026, the number of housing finance borrowers reached 64,836.
Despite recent growth, housing finance remains a very small segment of the financial sector, contributing only 0.3 percent to GDP and accounting for just 1.48 percent of total banking advances, according to State Bank data. Under the government’s markup subsidy scheme, financing for 31,391 housing units was provided between 2021 and 2023.
The latest figures come as the government intensifies efforts to revive construction and housing activity through expanded financing programmes, subsidies, and public-private partnerships.
Recently, the Economic Coordination Committee approved an expanded framework for the Prime Minister’s Apna Ghar Programme, allowing participation from overseas Pakistanis, institutional lenders, and non-banking financial institutions to broaden financing access.
The government has set an ambitious target to finance 500,000 housing units over the next four years, including 50,000 units in 2025–26, 100,000 in 2026–27, 150,000 in 2027–28, and 200,000 in 2028–29.
However, the document warned that financing 50,000 housing units alone would require subsidy and risk-sharing support of around Rs3.2 trillion, underscoring significant fiscal and structural challenges. It also called for stronger recovery laws and reforms to ensure sustainable growth in Pakistan’s housing finance market.
