Meezan Bank, ABAD Discuss Housing Finance as Pakistan Faces 14m Home Shortfall
ABAD and Meezan Bank officials discuss housing finance and construction opportunities in Karachi.
The Association of Builders and Developers of Pakistan (ABAD) hosted a reception at ABAD House in honour of Meezan Bank President and CEO Syed Amir Ali, where industry leaders discussed housing finance, construction activity and cooperation between the two organisations.
ABAD Chairman Muhammad Hassan Bakshi and other office-bearers and members welcomed Amir Ali at the event. Senior officials from ABAD and Meezan Bank also attended the gathering.
Amir Ali briefed ABAD members on Islamic banking services and housing finance facilities available to builders and homebuyers.
The meeting came as Pakistan continues to face a significant housing shortage. Participants stressed the need for stronger cooperation between the government, banks and the private sector to increase housing supply.
ABAD calls for stronger housing supply
Addressing the gathering, ABAD Chairman Muhammad Hassan Bakshi said the housing sector needs greater attention and consistent government policies.
Bakshi said banks have already approved around 30,000 to 40,000 housing finance applications. However, he pointed out that the supply of housing units remains far below demand.
He said ABAD has repeatedly highlighted the need to strengthen the supply side during meetings chaired by the prime minister.
Bakshi stressed that developers must complete projects within reasonable timeframes. He said customers cannot reasonably make payments over decades while waiting for housing projects to reach completion.
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He welcomed the move to extend housing finance to buildings that remain under construction. He described the development as a positive step for Pakistan’s housing market.
Bakshi urged builders and homebuyers to make full use of available housing finance schemes. He also asked ABAD members to strengthen their business links with Meezan Bank and support the expansion of housing finance.
ABAD plans dedicated housing finance desk
Bakshi said ABAD plans to establish a dedicated housing finance desk to guide builders and members of the public.
He said the facility would help applicants understand available financing options and navigate the process more easily.
Bakshi also called for stable and consistent economic policies to support businesses and long-term investment.
He proposed the establishment of special construction zones in Karachi and other parts of Pakistan to encourage construction activity and support the development sector.
He also urged authorities to make housing finance more accessible to overseas Pakistanis.
More than 10 million Pakistanis live abroad, he said, adding that they should receive better opportunities to build homes and invest in the country.
Bakshi also called on builders to fulfil their responsibilities and avoid violations during construction. He said the difficult period had passed and stakeholders should now work together to strengthen the sector.
Meezan Bank highlights 5pc housing finance scheme
Meezan Bank President and CEO Syed Amir Ali said builders play an important role in expanding construction activity and addressing Pakistan’s housing shortage.
He said the Prime Minister Apna Ghar Housing Scheme was introduced at an appropriate time. Under the scheme, financing is available at a rate of 5 percent, which he said can be comparable to the monthly rent of an average home.
According to Amir, the scheme has received financing applications worth more than Rs22 billion.
He said Meezan Bank has so far disbursed around 14 percent of the amount involved.
Amir said Pakistan faces a serious shortage of housing units. One major reason, he added, is the limited supply of completed homes in the market.
He noted that renting a house worth around Rs10 million can cost approximately Rs50,000 per month. Housing finance can therefore provide another route for families seeking home ownership.
Bank seeks stronger builder screening system
Amir said builders also face challenges when collecting instalments from customers.
He suggested that ABAD form a committee to identify reliable and eligible builders for housing finance projects.
He proposed including legal experts in the committee to help address legal procedures and potential complications.
Amir also acknowledged the impact of rising construction material costs. Higher costs can make it difficult for builders to complete projects within planned timelines.
He said housing finance could help address some of these challenges by improving the flow of funds during construction.
Meezan Bank is also considering financing projects that remain incomplete, he said. Such support could help developers complete stalled projects and bring additional housing units to the market.
The participants agreed on the need for closer coordination between banks, builders and policymakers to expand housing supply and make home financing more accessible across Pakistan.
