Planning Minister Ahsan Iqbal on Monday chaired a high-level meeting focused on devising a sustainable affordable housing finance scheme in Pakistan. The session aimed to tackle longstanding challenges in long-term housing finance and draw inspiration from successful international models, including those from Singapore, South Africa, Turkey, Bangladesh, Brazil, and India.
In the meeting, participants explored policy frameworks that could support low-cost housing tailored to Pakistan’s socio-economic environment. The minister underlined that the lack of accessible long-term financing is one of the core barriers preventing the development of affordable housing in the country. He reflected on previous progress made during 2017-18 that was derailed due to political instability, emphasizing that inconsistency in policy comes at the expense of the public.
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Iqbal proposed adapting the successful auto-leasing model from the private sector to the housing sector, advocating for a structure where homes could be financed through long-term loans backed by government guarantees. “Millions live their entire lives in rented spaces. Owning a home should be within reach for salaried citizens,” he stated. He pointed out that constructing a house costing Rs. 20 million to Rs. 30 million is virtually impossible for average earners to achieve without structured financing.
The minister emphasized the government’s willingness to back the initiative with full capital guarantees for private banks. He urged banks to develop a market-based housing finance model and assured them of the state’s regulatory and policy support. A framework proposed by Member Infrastructure Waqas Anwar was also reviewed during the session.
The meeting highlighted that the Punjab government is preparing its own housing rollout, and the Planning Ministry plans to collaborate with the Federal Law Minister Azam Nazeer Tarar to align legal and regulatory policies.
Minister Iqbal further suggested targeted subsidies for smaller housing units, such as three-marla homes, while giving banks autonomy to create financing models for larger homes like ten-marla units and beyond. He noted that the housing sector could be a key driver of economic expansion, infrastructure improvement, and societal progress.
The CEOs of various private banks in attendance expressed strong support for the proposals and showed willingness to help craft a practical and scalable housing finance solution. Also present at the meeting were Planning Secretary Awais Manzoor Sumra, PIDE Vice Chancellor Nadeem Javed, the Governor of the State Bank of Pakistan, and representatives from PMRC and the National Bank of Pakistan.
Minister Iqbal concluded by stressing the urgency of the initiative, calling it both an economic and social necessity for the country.
