Pakistan Launches Housing Policy to Tackle 13m-Unit Shortfall

Pakistan’s Ministry of Housing and Works has introduced the National Housing Policy 2025, marking the country’s first major national housing policy update in almost 25 years as the government works to tackle an estimated housing shortage of around 13 million units.

The policy was officially launched in Islamabad on October 5 in partnership with UN-Habitat Pakistan, coinciding with the country’s observance of World Habitat Day 2026.

The revised framework aims to increase the availability of affordable housing, strengthen land tenure security, improve access to housing finance and upgrade informal settlements.

According to the government, implementation will focus on widening access to adequate and affordable homes, improving coordination between relevant institutions and promoting more sustainable and climate-resilient communities.

The policy also incorporates existing government housing finance programmes into its action plan, with the objective of increasing home ownership among low- and middle-income households.

Under the Wazir-e-Azam Apna Ghar Programme and Ghar Ho To Apna scheme, the Ministry of Housing and Works said Rs65 billion has so far been disbursed to first-time homebuyers across Pakistan.

The government said these initiatives are designed to make housing finance more accessible and affordable, particularly for families belonging to low- and middle-income groups.

Details presented during the policy launch show that the new housing finance framework can provide financing support of up to 90% for home ownership.

The government estimates Pakistan’s housing deficit at approximately 13 million units and says the shortage continues to grow, increasing pressure on housing affordability as well as urban infrastructure.

The National Housing Policy 2025 aims to create a nationwide framework for addressing these challenges while connecting housing development with climate resilience, sustainable urban growth and wider development planning.

The policy also prioritises adequate housing and access to essential services, while highlighting coordination and cooperation between government bodies, development partners and other stakeholders as key to successful implementation.

The policy was launched at the National University of Sciences and Technology in Islamabad as part of Pakistan’s World Habitat Day observance. This year’s event is being held under the theme “Adequate Housing for All.”