Sindh Real Estate News and Land Insights

Karachi | ReNews Pakistan
The State Bank of Pakistan has introduced major changes to its prudential regulations for housing finance, extending the maximum repayment period to 30 years and allowing banks and development finance institutions to finance up to 90 percent of the value of a residential property.
Under the revised regulations, the maximum tenor for housing finance has been increased from 20 years to 30 years, a move that could make monthly repayments more manageable for borrowers by spreading the cost of a housing loan over a longer period.
The change addresses one of the long standing constraints in Pakistan's housing finance market, where banks have traditionally been reluctant to offer longer term mortgages because much of their deposit base carries significantly shorter maturities.
According to the amended regulations, the maximum Loan to Value ratio for housing finance has been fixed at 90:10. This means eligible borrowers may obtain financing covering up to 90 percent of the value of a house or apartment, while contributing the remaining 10 percent from their own resources.
The revised framework also changes the parameters governing borrowers' repayment capacity.
Under Regulation HF 6, which deals with the Debt Burden Ratio, the combined monthly repayments of a prospective borrower, including the proposed housing finance facility and all other outstanding consumer finance obligations, must not exceed 65 percent of the borrower's net disposable income.
The provision is intended to allow banks greater flexibility in assessing housing finance applications while maintaining a formal ceiling on the amount of household income committed to debt repayments.
The SBP has also sought to widen access to mortgage finance for individuals whose earnings may not be fully documented through conventional salary slips or formal financial statements.
Banks and DFIs have been directed to use informal income estimation models, also known as proxy models, circulated by the Pakistan Banks' Association to assess the income and repayment capacity of prospective housing finance customers.
The measure could be particularly significant for self employed individuals, small business owners and people working in the informal economy who have historically faced difficulties in meeting banks' conventional income documentation requirements.
The revised regulations also clearly define the purposes for which housing finance may be provided.
Banks and DFIs may extend financing for the purchase of a house or apartment, construction of a house on a plot already owned by the borrower, or the purchase of a plot together with construction of a house on it.
Housing finance may also be used for the extension or expansion of an existing house, renovation of a residential unit and the installation of renewable energy solutions in homes.
The inclusion of renewable energy installations broadens the scope of housing finance beyond conventional property acquisition and construction, potentially allowing homeowners to finance solar and other approved energy solutions as part of their residential borrowing.
In another significant consumer facilitation measure, Regulation HF 2 requires banks and DFIs to adopt standardised and simplified housing loan application forms.
Financial institutions must also clearly specify all documents required for processing a housing finance application in both physical and digital formats.
The information and documentation requirements must be made available in both Urdu and English, making the application process easier to understand for a wider range of prospective borrowers.
The latest reforms represent an effort by the central bank to improve accessibility, affordability and transparency in Pakistan's relatively underdeveloped mortgage market.
By extending loan tenors, increasing the permissible financing share, recognising informal income and simplifying application requirements, the revised framework could expand the pool of households eligible for formal housing finance.
However, the effectiveness of the reforms will also depend on how aggressively commercial banks respond, particularly given the continuing challenge of funding long term housing loans through a banking system largely dependent on shorter term deposits.

Karachi | ReNews Pakistan
Pakistan’s construction sector is moving toward recovery, but sustaining the momentum will require timely structural reforms, improved financing facilities and greater private sector participation, business leaders have said.
They said effective reforms could turn the construction industry into a major driver of economic growth, employment generation and industrial activity, particularly because the sector has direct linkages with more than 40 allied industries.
Industry stakeholders welcomed the government’s proposal to establish a Construction Industry Development Board, or CIDB, as well as the possible creation of a specialised Construction Development Bank, or CDB. They said improvements in trade policies and the tax system could also play an important role in creating a more supportive environment for the construction industry.
The proposed reform framework also includes extending the defect liability period for public sector projects, a measure aimed at improving construction quality and strengthening accountability after project completion.
Recent economic indicators also point to an improvement in construction activity. According to the Pakistan Economic Survey 2025-26, the construction sector grew by 5.7 percent during FY2025-26. The recovery is significant for an industry that has faced high costs and financial pressures in recent years.
Cement industry data also reflects stronger domestic construction activity. Total cement dispatches increased by 7.2 percent during FY2025-26 to 50.5 million tonnes, while domestic sales recorded even stronger growth.
The positive trend continued into the new fiscal year. Total cement dispatches reached 4.476 million tonnes in July 2026, while domestic cement sales posted a notable increase of 17.3 percent.
However, the export performance remained less encouraging. Cement exports declined by 30 percent to 705,341 tonnes, raising concerns over Pakistan’s competitiveness in international markets.
People associated with the cement industry said the sharp fall in exports reflected the high cost of doing business and highlighted the need for measures to improve the global competitiveness of Pakistani cement manufacturers.
They stressed that the current recovery in the construction sector should not remain dependent on temporary incentives and should instead be supported through long term structural reforms. These should include improvements in financing, taxation, trade policy, regulation and construction standards.
With the federal Public Sector Development Programme for FY2026-27 set at around Rs1 trillion, they said public investment alone would not be enough to unlock the full potential of the construction sector.
According to industry stakeholders, greater private sector participation in housing, commercial development and infrastructure will be essential to sustain construction activity, create new employment opportunities and strengthen the wider network of industries linked to the sector.

Karachi | ReNews Pakistan
Federal Minister for Communications Abdul Aleem Khan has announced that construction work on major new motorway links connecting Sukkur, Hyderabad and Karachi will begin this year, marking a significant expansion of Sindh’s road infrastructure.
Speaking to reporters in Karachi, the minister said work on the long awaited Sukkur/Hyderabad motorway would commence from the Sukkur side in 2026. The government intends to complete the project within two years, providing a modern motorway connection between northern and southern Sindh.
The Sukkur/Hyderabad section is particularly important because it represents a major missing link in Pakistan’s north/south motorway network. Its development is expected to improve connectivity between Sindh and other parts of the country while facilitating passenger travel, freight movement and commercial activity along one of Pakistan’s most important transport corridors.
Abdul Aleem Khan also announced plans for a new motorway between Hyderabad and Karachi. He clarified that the proposed route would be a separate motorway and would not be connected with or treated as an extension of the existing M-9 Motorway linking the two cities.
The minister described the planned motorway development as a major infrastructure initiative for the people of Sindh as well as the rest of Pakistan. The projects are expected to strengthen road connectivity between Karachi, Hyderabad and Sukkur while improving access to the national motorway network.
The announcement came as the communications minister held discussions with representatives of the All Pakistan Goods Transporters Alliance regarding issues faced by the freight and logistics sector.
Alongside motorway development, the federal government plans to improve facilities available to goods transporters. Abdul Aleem Khan said suitable land would be arranged for truck stands, while properly equipped rest areas would also be developed to provide essential facilities to drivers and transport workers travelling on major highways.
Addressing complaints regarding traffic enforcement, the minister assured transporters that they would be protected against unjustified traffic challans. At the same time, he stressed that commercial vehicles must comply with officially prescribed axle-load limits.
He urged goods transport operators to avoid overloading, noting that adherence to axle load regulations is essential for road safety as well as protecting highways and motorways from premature deterioration caused by excessive vehicle weight.
The minister said the government was prepared to address all genuine concerns of the transport community but emphasised that commitments would only be made where they could realistically be implemented.
The proposed motorway projects, particularly the Sukkur/Hyderabad section and the separate Karachi/Hyderabad route, could significantly strengthen Sindh’s transport network by creating faster road connections for passengers and freight while improving links between Karachi and the country’s wider motorway system.