ISLAMABAD: Pakistan has approached the International Finance Corporation (IFC) for support in expanding housing finance and improving access to home financing. The government is also working to strengthen the institutional framework for housing finance in the country.
Federal Economic Affairs Minister Ahad Cheema discussed the matter with representatives of the IFC and World Bank. He said the government wants to make financing more accessible for people looking to build or purchase homes.
Housing finance has been included among the priority areas under the World Bank Group’s 2026–2035 Country Partnership Framework for Pakistan. Small and medium-sized enterprises (SMEs) and public-private partnerships (PPPs) are also part of the framework’s focus areas.
The framework is expected to support broader private-sector development and financial mobilisation in Pakistan. The World Bank Group has indicated that it could mobilise up to $2 billion annually across the framework’s different priority areas. This figure is not dedicated solely to housing finance.
Pakistan’s formal housing finance market remains relatively limited compared with the country’s overall housing needs. The government’s engagement with international financial institutions is therefore focused on strengthening the systems that support home financing rather than providing a one-time funding programme.
Institutional reforms could include improvements in housing finance mechanisms and the capacity of financial institutions to serve potential homebuyers. However, the details of any IFC support, financing arrangements, or specific programmes have yet to be finalised.
For the property sector, wider access to formal housing finance could affect the ability of more households to purchase or construct homes. The eventual impact will depend on the design of future programmes, lending conditions, eligibility requirements, and regulatory reforms.
The initiative is part of a longer-term policy direction under the 2026–2035 framework. Its effect on mortgage availability, financing costs, and property demand will depend on how the proposed reforms and international support are implemented over the coming years.
