Planning Minister Ahsan Iqbal chaired a meeting on affordable housing finance schemes Monday, focusing on addressing long-term housing finance challenges and exploring viable policy models for low-cost housing in Pakistan.
The meeting reviewed international best practices and mortgage models from countries including Singapore, South Africa, Turkey, Bangladesh, Brazil, and India, with discussions centered on designing a practical and sustainable housing finance framework tailored to Pakistan’s socio-economic conditions.
Iqbal emphasized that the lack of long-term housing finance remains one of the country’s most significant barriers to affordable housing. He recalled substantial progress made in 2017-18, which was disrupted by political instability. “When policy continuity is lacking, the public bears the cost,” he noted.
The minister highlighted the success of auto-leasing models in the private sector and questioned why a similar approach couldn’t be implemented for housing. “Millions of people live their entire lives in rented homes. Owning a house should not be a distant dream for the salaried class,” he said, adding that “a home amounting to Rs. 20 million to Rs. 30 million cannot be built through lump-sum payments by an average income earner.”
Iqbal advocated for a housing finance framework similar to auto-leasing, backed by mortgages and supported by government policy. He announced that “the government is ready to offer 100 percent guarantees to banks to ensure the security of their capital.”
Member Infrastructure Waqas Anwar presented the Planning Ministry’s proposed financial framework during the meeting. It was noted that the Punjab government is also launching its own housing program, and the Planning Ministry plans to engage with Federal Minister for Law Azam Nazeer Tarar to streamline legal and regulatory aspects.
The minister called on private banks to adopt a market-based housing finance model without fear, assuring full government support. “Creating an easy housing finance framework is not rocket science. Successful models exist worldwide, and we must adapt them to our context,” he stated.
Iqbal also proposed targeted government subsidies for smaller housing units like three-marla homes, while allowing banks to independently design frameworks for larger units.
CEOs of private banks responded positively to the proposals, expressing willingness to collaborate in designing a practical financing framework for affordable housing.
The meeting was attended by 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 PMRC and National Bank of Pakistan.
