Business leaders have welcomed the government’s new mortgage housing finance initiative, calling it a positive step for boosting home ownership and stimulating economic activity, while urging broader private sector participation to make the scheme effective.
Former caretaker minister Gohar Ejaz praised Prime Minister Shehbaz Sharif for launching the initiative, describing mortgage financing as critical support for the middle class and a catalyst for growth in housing and construction.
Ejaz, however, said the current financing cap of Rs10 million is insufficient, arguing it should be raised to Rs30 millionto reflect actual housing costs in major cities. He also called on the State Bank of Pakistan to allow private housing finance companies regulated by the Securities and Exchange Commission of Pakistan to participate in the scheme.
He said involving private developers and non-banking financial institutions would improve loan access, expand outreach, and help deliver financing benefits to middle- and lower middle-income households.
Meanwhile, SM Tanveer supported the initiative but urged policymakers to reduce the markup rate from 5 percent to zero for low- and middle-income groups to make housing finance truly affordable.
Business stakeholders noted that Pakistan’s housing shortage runs into millions of units, while mortgage penetration remains among the lowest in the region. They said a stronger housing finance system could unlock large-scale economic activity, especially through the construction sector’s links with dozens of allied industries.
Experts also emphasized that simplifying procedures, digitizing land records, and ensuring legal protections for lenders and borrowers will be essential for the scheme’s long-term success.
The business community said the initiative has strong potential, but its impact will depend on timely reforms, including higher financing limits, lower borrowing costs, and wider private sector integration.
