Pakistan to Regulate Real Estate, Expand Housing Finance for Low-Income Citizens

Islamabad, Pakistan – Prime Minister Shehbaz Sharif has directed officials to take practical steps to expand access to housing finance, particularly for low-income citizens, and to establish a Real Estate Regulatory Authority (RERA) to oversee the country’s property sector. The announcements came during a meeting on the affairs of the Federal Ministry of Housing and Works held at the Prime Minister’s House in Islamabad on Wednesday, March 18, 2026.

Focus on Affordable Housing

Sharif emphasized that providing housing for low-income groups, promoting affordable housing projects, encouraging private sector involvement, and improving public facilities are key priorities for his administration. He directed officials to ensure housing finance facilities are accessible to the general public. The Prime Minister’s directives align with broader efforts to address housing shortages and improve living standards across Pakistan.

Real Estate Regulatory Authority (RERA)

A central component of the government’s plan is the establishment of a Real Estate Regulatory Authority (RERA). This authority will be responsible for establishing and enforcing rules and regulations for the real estate and housing sectors, aiming to bring greater transparency and accountability to the market. According to a statement released after the meeting, RERA will oversee codes of conduct within the industry.

Public-Private Partnerships and Tax Reforms

The Ministry of Housing and Works is developing a roadmap for the construction of houses for low-income earners through public-private partnerships. Reforms are similarly underway to the tax structure for the construction sector, with ongoing consultations between the Federal Board of Revenue (FBR) and provincial governments to standardize tax regulations. Discussions are also being held on draft reforms for house mortgages.

Collaboration Across Ministries

Efforts to improve housing finance are being coordinated across multiple government entities, including the Ministry of Housing, the Ministry of Finance, the FBR, the Securities and Exchange Commission, and provincial housing ministries. Collaboration will focus on Real Estate Investment Trusts (REITs) to facilitate investment in the sector.

Political Context

The current Cabinet of Pakistan is led by Prime Minister Shehbaz Sharif. The Cabinet, a formal body composed of senior government officials, is responsible for the executive functions of the federal government. Key provincial leaders include Maryam Nawaz (Punjab), Murad Ali Shah (Sindh), Sohail Afridi (KPK), and Sarfraz Bugti (Balochistan).