House Financing Amount in Pakistan Reaches Rs. 37 Billion

Pakistan’s housing finance sector received 25,304 applications by April 30, 2026, according to an official document presented during a briefing on the country’s housing finance landscape.

The document stated that 8,990 applications under various housing schemes had been approved, while 2,612 applications were rejected. The total approved financing amount reached Rs. 37.154 billion.

It further revealed that 13,792 applications are currently under process, while funds have already been disbursed against 1,845 applications. So far, Rs. 5.071 billion has been distributed under different housing finance initiatives.

Officials said implementation of government-backed housing schemes is progressing rapidly as authorities attempt to expand mortgage financing and improve access to affordable housing in Pakistan.

According to the document, the cumulative housing finance portfolio of all banks in Pakistan stands at Rs. 246 billion since the country’s inception. As of March 31, 2026, the number of housing finance borrowers reached 64,836.

Despite recent growth, the sector remains extremely small compared to regional markets. The document noted that housing finance contributes only 0.3 percent to Pakistan’s GDP, while its share in total banking advances stands at just 1.48 percent according to State Bank data. Under the government’s Mark Up Subsidy Scheme, financing for 31,391 housing units was provided during a 20-month period between 2021 and 2023..

The latest figures come as the government attempts to revive housing and construction activity through expanded financing programs, subsidy schemes, and public-private partnerships.

Recently, the Economic Coordination Committee approved an expanded framework for the Prime Minister Apna Ghar Program, including participation of overseas Pakistanis, institutional financing, and non-banking financial institutions to improve outreach and financing access.

The government has now set a target to finance 500,000 housing units over the next four years. Under the proposed roadmap, financing is planned for 50,000 units during fiscal year 2025-26, 100,000 units in 2026-27, 150,000 units in 2027-28, and 200,000 units in 2028-29.

However, the document warned that financing 50,000 housing units alone would require subsidy and risk-sharing support of nearly Rs. 3.2 trillion, highlighting major financial and institutional challenges facing the sector. The document also stressed the need for stronger recovery laws and structural reforms to support sustainable growth in Pakistan’s housing finance market.