Mohsin Sheikhani urged govt to increase lending to support housing growth

Pakistan’s growing housing shortage requires urgent and sustained policy action, with affordable financing, long-term planning and stronger public-private cooperation emerging as key elements to address the widening gap between supply and demand, according to Mohsin Sheikhani, Patron-in-Chief and former Chairman of the Association of Builders and Developers (ABAD).

Speaking about the challenges facing the housing sector, Sheikhani said the demand for new homes continues to rise steadily as population growth accelerates, particularly in major urban centers. However, housing development has not kept pace with the country’s needs, leaving millions of families struggling to access suitable and affordable accommodation.

Sheikhani described the housing and construction industry as one of Pakistan’s most important economic sectors, noting that it supports thousands of jobs and generates activity across dozens of allied industries, including cement, steel, transport and manufacturing. Increased investment in housing, he said, could therefore contribute not only to addressing the housing deficit but also to boosting economic growth.

He observed that government-led housing programs remain limited in scale and are insufficient to meet rising demand. In contrast, the private sector has played a major role in developing residential communities that reflect changing consumer preferences for quality construction, better infrastructure and improved living standards.

Despite these efforts, Sheikhani said access to affordable financing remains one of the biggest obstacles preventing many families from buying or building homes. He urged government and commercial banks to allocate larger funds for housing loans and simplify lending procedures, arguing that easier access to credit would expand home ownership and stimulate construction activity.

He also pointed to soaring land prices in urban areas as a major challenge. Affordable housing projects, he noted, are increasingly being developed on the outskirts of cities where transport networks and basic infrastructure remain inadequate, while centrally located developments have become unaffordable for a large segment of the population.

The shortage of low-cost housing has also contributed to the expansion of informal settlements, creating additional pressure on urban services and raising concerns over public safety and crime, Sheikhani said.

He added that economic stability and an improved security environment are essential for attracting investment into the construction sector. Builders and developers, he said, are prepared to launch new projects if conditions remain favorable.

Calling for a comprehensive national housing strategy, Sheikhani urged the government to expand affordable housing schemes, improve access to financing and encourage greater private-sector participation to meet Pakistan’s growing housing needs.