The World Bank estimates that Pakistan can potentially raise up to $3.8 billion in financing for housing. According to research from the World Bank’s IFC organisation.
It is pertinent to state that housing Finance was typically only made available to the wealthy and was only available in a few significant cities. The organisation divided the population of more than 3 lakhs 26 cities into 3-tier. There were three significant cities in the first tier: Karachi, Lahore, and Islamabad. Gujranwala, Multan, and Sargodha are among the cities that made up the second tier, while Larkana, Sheikhupura, and Gwadar are among the smaller cities that made up the third tier.
They were further divided into the upper, medium, and lower middle classes. According to the report, 2.7 billion dollars would be needed to finance the construction of homes for 3 lakh 60,000 individuals in the big cities. 96000 persons in typical cities needed housing financing totaling about 74 crore dollars.
Tier 3 needed $33 crore for its 42000 inhabitants. Pakistan’s middle class is made up of three subgroups, each of which requires $3.66 billion in rupees. According to the estimate, Pakistan’s population will have doubled by 2023. Currently, we need one crore homes, and that number is increasing by up to 4 lakh per year.
The World Bank contends that the lack of appropriate and cheap options for the middle class is to blame for the backlash. In praising the State Bank of Pakistan on the next topic, the World Bank stated that the primary objective is to improve mortgage, build driving mortgage and housing market, and establish an efficient legal framework to support the home and finance.
IFC has been working toward enhancing Pakistan Housing Finance and will continue to do so.
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