Housing for Pakistan (H4P) is a two-phase joint IFC Investment Services and Advisory Services project aimed at building the primary market for housing finance in Pakistan through investment facilitation and capacity-building measures at financial institutions and developers. The target groups are households from the affordable segment, whose household incomes (both formal/documented and informal/undocumented) range from $500 to $1,200 per month.
Pakistan faces a substantial affordable housing deficit that is driven by rapid urbanization, inadequate urban planning, atomized and undercapitalized residential development industries, lenders with limited capacity to reach low-income households, and a lack of long-term funding. The upstream creation of an effective housing market in Pakistan holds tremendous potential for improvements to quality of life and economic development.
H4P builds on previous and current World Bank Group programs and initiatives, especially its support to the Pakistan Mortgage Refinance Corporation, as well as the PAK Housing Program. Another important element is the Government of Pakistan’s established ‘Naya Pakistan Housing Program’, which supports the construction of five million affordable homes.
With support from FIAS, the team aims to improve capacities (e.g., know-how to originate, process, and manage mortgage loans to the affordable segment) in partner banks, developers, and the Pakistan Mortgage Refinance Corporation; compile and disseminate market information and show market catalyzation and demonstration effect: other financial institutions should offer housing loans to the affordable segment and increase lending activities to them.
Foot bridge over river. Photo: Curt Carnemark/ World Bank