Islamabad: A high-level meeting on affordable housing finance schemes was chaired by Federal Minister for Planning, Development, and Special Initiatives, Ahsan Iqbal, addressing the challenges in long-term housing finance. The meeting sought to explore viable policy models for low-cost housing in Pakistan.

The attendees included 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 Nationwide Bank of Pakistan.

Participants reviewed international mortgage models from countries like Singapore, South Africa, and India, focusing on adapting a sustainable housing finance framework to Pakistan’s economic context.

Minister Iqbal emphasized that the lack of long-term housing finance is a major barrier to affordable housing in the country. He referenced progress made in 2017-18 that was stalled by political instability, noting the impact on the public when policy continuity is absent.

Highlighting successful auto-leasing models, Iqbal questioned the absence of a similar model for housing, pointing out that many live in rented homes throughout their lives. He stressed the need for a framework supported by government policy and guarantees, offering banks 100% guarantees to secure their capital.

The Planning Ministry’s proposed financial framework was presented by Member Infrastructure Waqas Anwar, with acknowledgment of the Punjab government’s own housing program rollout.

Iqbal urged private banks to adopt a market-based housing finance model, assuring them of full government support. He proposed targeted subsidies for smaller housing units while allowing banks to design frameworks for larger units independently.

Private banks responded positively, expressing their willingness to collaborate in designing a practical financing framework for affordable housing.

“This initiative is not merely a policy; it is a national economic and social imperative,” concluded Minister Iqbal.