Govt Plans To Expand Low Cost Housing & Create Jobs

Prime Minister Shehbaz Sharif chaired a high-level meeting to review measures aimed at promoting investment in the housing sector, expanding access to low-cost housing and generating employment opportunities.

The prime minister said affordable housing is a basic right of every citizen, emphasizing that providing easy loans on simplified terms remains a top government priority. He directed authorities to remove barriers to investment and ensure protection for both foreign investors and overseas Pakistanis in the housing sector.

Officials briefed the meeting on proposals prepared by a task force, including reforms to boost construction activity, expand mortgage financing and introduce developer-led financing models. The government is also working on strengthening the overall mortgage ecosystem and has already implemented a low-cost housing finance system, with plans to assign targets to banks in the next phase.

The meeting also reviewed ongoing legal reforms in the housing and construction sector, which are said to be in the final stages, alongside efforts to increase coordination between federal and provincial governments, including Azad Kashmir and Gilgit-Baltistan.

The development comes amid a broader policy push to revive Pakistan’s housing sector, which has long faced structural challenges such as limited access to financing and an estimated housing shortage of around 10 million units.

In recent weeks, the government has accelerated reforms, including plans to establish a Real Estate Regulatory Authority (RERA), standardize construction taxes and expand public-private partnerships to boost housing supply.

Additionally, the State Bank of Pakistan has revised its affordable housing finance scheme, reducing markup rates to 5 percent and increasing loan limits up to Rs10 million to improve access for middle- and low-income groups.

Officials say these combined measures are aimed at stimulating construction activity, attracting investment and creating jobs, as the housing sector remains a key driver of economic growth and employment in the country.