Pakistan is currently grappling with a shortfall of over 12 million houses, as demand for housing increases following a decline in key lending rates. This trend typically encourages individuals to invest in real estate rather than keeping their money in banks. Builders and developers believe that reviving the housing and construction sector could generate significant employment opportunities and benefit over 70 allied industries.

The Chairman of the Association of Builders and Developers (ABAD) recently stated that Prime Minister Shehbaz Sharif has acknowledged their proposals but is cautious about speculative trading in property. The Prime Minister has requested revised suggestions within 10 days and expressed a commitment to supporting low-income housing initiatives.

The ABAD chairman highlighted that property prices in Pakistan remain significantly lower than those in the Middle East, despite the cement industry operating at only 30 percent capacity. He called for long-term subsidized financing similar to that provided by the previous government, which financed over 31,000 houses at fixed subsidized rates between 2018 and 2022.

However, banking experts caution that large-scale financing for housing may not be feasible, as mortgage lending in Pakistan is still underdeveloped. While home financing could allow buyers to make payments in installments comparable to rental costs, banks remain hesitant to engage in long-term housing loans due to the high risk of default.