Housing loans in Pakistan climbed to an all-time high of Rs. 286 billion in July 2026, marking a milestone for the country’s mortgage financing sector as demand for subsidized home financing continues to build.

What’s Driving the Growth

According to Topline Securities, the record figure reflects growing uptake of the government’s Mera Ghar Mera Ashiana housing scheme, which offers subsidized financing designed to improve affordability for prospective home buyers who might otherwise struggle to secure conventional mortgage financing. Pakistan has historically had one of the lowest mortgage penetration rates in the region, and a steady rise in housing loans culminating in this record figure points to stronger underlying demand for mortgage financing across the banking sector.

What Comes Next

Topline Securities’ analysis suggests the current trend is likely to support further growth in housing finance as more borrowers gain access to affordable home loan options through schemes like Mera Ghar Mera Ashiana. Government-backed housing finance schemes have been positioned as a way to address Pakistan’s substantial housing shortage while also stimulating growth in construction and real estate, sectors with significant knock-on effects for employment and related industries. Whether July’s figure represents a sustained structural shift or a temporary spike tied to scheme incentives will likely become clearer as housing loan data for subsequent months is released.

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