ISLAMABAD: In a bid to unlock long-term housing finance and make home ownership accessible for the salaried class, Federal Minister for Planning, Development, and Special Initiatives Ahsan Iqbal chaired a high-level meeting on Monday to explore sustainable policy models for affordable housing.
The minister identified the lack of long-term housing finance as one of the biggest hurdles in expanding affordable housing access. Reflecting on reforms made during 2017–18, he lamented that political instability had disrupted continuity in policy execution.
“People spend their entire lives in rented homes. A house shouldn’t remain an unattainable dream for the working class,” Iqbal said, pointing to the unaffordability of homes worth Rs20–30 million without structured financing options.
He proposed a mortgage financing model similar to auto-leasing, backed by strong regulatory structures and state guarantees. “We are prepared to offer 100% guarantees to banks to protect their investments,” he assured stakeholders, urging the banking sector to confidently participate in the national housing agenda.
Member Infrastructure Waqas Anwar presented a draft financial framework prepared by the Planning Ministry. It was also noted that the Punjab government is gearing up to launch its own housing initiative.
To synchronize regulatory support, the Planning Ministry will consult Law Minister Azam Nazeer Tarar, according to an official press release.
Emphasizing the importance of market-led solutions, Iqbal called on private banks to come forward and offer housing finance instruments. “Crafting a workable housing finance model is achievable. We must customize proven models from other countries,” he said.
He further suggested that targeted government subsidies be introduced for smaller housing units, such as three-Marla homes, while leaving mid- to high-end segments to be addressed through commercial bank products.
“This approach can transform Pakistan’s housing landscape and serve as a catalyst for economic growth, infrastructure development, and social uplift,” he said.
The session was attended by key stakeholders including Planning Secretary Awais Manzoor Sumra, State Bank of Pakistan Governor, Pakistan Institute of Development Economics (PIDE) Vice Chancellor Dr. Nadeem Javed, CEOs of leading commercial banks, and representatives from the Pakistan Mortgage Refinance Company (PMRC) and National Bank of Pakistan.
Participants also reviewed international best practices from countries such as Singapore, South Africa, Turkey, Bangladesh, Brazil, and India, with a focus on tailoring those models to Pakistan’s unique socio-economic context.
Banking sector representatives welcomed the proposals and expressed willingness to collaborate on a viable and inclusive housing finance framework.
Concluding the session, Ahsan Iqbal remarked, “This is more than just a policy goal — it is a national economic and social necessity.”
