General Assessment

    Variable(2018)
    Data
    Main constraints in the development of the housing finance sector Cultural Implication, Inefficient legal and weak tax framework, inefficient land dispute machanism, builders are also reluctant to go down market and tap into low-income segments
    New developments that will have a major impact on the sectorShariah compliant products, establishment of Pakistan Mortgage refinance company
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    Notes: (The dollar figures are given in the Review)
    Notes: (The dollar figures are given in the Review)
    Notes: (The dollar figures are given in the Review)
    Notes: (The dollar figures are given in the Review)
    Notes: Base Year = 2010
    Notes: Base Year = 2010
    Notes: House Building Finance Company Limited (HBFL) and Development finance institutions (DFIs)
    Notes: House Building Finance Company Limited (HBFL) and Development finance institutions (DFIs)
    Notes: House Building Finance Company Limited (HBFL) and Development finance institutions (DFIs)
    Notes: National Bank of pakistan, The bank of punjab, Sindh bank, bank of khyber
    Notes: # of borrowers
    Notes: (The dollar figures are given in the Review)
    Notes: 10+
    Notes: 10+
    Notes: 10+
    Notes: 10+
    Notes: 10+
    Notes: 14000 per month as per the notification from the govt of punjab under min wages ordinance 1961
    Notes: 15000/month under New Labor Policy 2018
    Notes: 25 banks including private, public and specialized banks. Other institute includes HBFCl
    Notes: 5 to 7%
    Notes: 5 to 7%
    Notes: 5 to 7%
    Notes: 5 to 7%
    Notes: 70-80%
    Notes: 70-80%
    Notes: 70-80%
    Notes: 70-80%
    Notes: 70-80%
    Notes: Administrative in terms of weak property rights and proving ownership on legal grounds
    Notes: Amortized PMT should not exceed 50% of the net disposable income of the prospective borrowers
    Notes: Apart from interest deductible from income tax, there is no subsidy on home mortgage
    Notes: Apart from interest deductible from income tax, there is no subsidy on home mortgage
    Notes: Apna bank is a private commercial microfinance bank and many other.
    Notes: Article 24
    Notes: As defined in the Housing finance prudential regulations, which equals 85, with haircut of 15%
    Notes: as per HIES REPORT using sampling methodology.
    Notes: As per sec 231AA advance tax is to be paid for any sum transferred from bank. In case of mortgage this advance tax is collected by the bank.
    Notes: As per sec 231AA advance tax is to be paid for any sum transferred from bank. In case of mortgage this advance tax is collected by the bank.
    Notes: As per sec 28 deduction is allowed for any lease rental payment paid to financial institution. However no other tax is paid.
    Notes: As per sec 28 deduction is allowed for any lease rental payment paid to financial institution. However no other tax is paid.
    Notes: As per the House Finance Prudential Regulation
    Notes: Average Monthly Household Income
    Notes: Average Monthly Income
    Notes: Base Year = 2010
    Notes: Base Year = 2010
    Notes: Base Year = 2010
    Notes: Base Year = 2010
    Notes: Base Year = 2010
    Notes: Base Year = 2010
    Notes: Base Year = 2010
    Notes: Base Year = 2010
    Notes: Base Year = 2010
    Notes: Base Year = 2010
    Notes: Base Year = 2010
    Notes: Base Year = 2010
    Notes: Base Year = 2010
    Notes: Base Year = 2010
    Notes: Base Year = 2010
    Notes: Base Year = 2010
    Notes: Base Year = 2010
    Notes: Base Year = 2010
    Notes: Base Year = 2010
    Notes: Base Year = 2010
    Notes: Base Year = 2010
    Notes: Base Year = 2010
    Notes: Base Year = 2010
    Notes: Base Year = 2010
    Notes: Base Year = 2010
    Notes: Base Year = 2010
    Notes: Borrowing stands at being secondary source. For HBL borrowing as % of asset are .13 & .141 for FY 16 & 15 respectively, Whereas for UBL it is .123 & .1105 repectively. For HBFCL it primary source was credit line from SBP which was later on converted to shareholder equity. http://pmrc.com.pk/about/overview/
    Notes: Capital Gain tax on disposal of immovable property as per division 8 of part 1 of schedule 1
    Notes: Capital Gain tax on disposal of immovable property as per division 8 of part 1 of schedule 1
    Notes: Commercial Banks
    Notes: Commercial Banks
    Notes: Commercial Banks
    Notes: Commercial Banks
    Notes: Commercial Banks
    Notes: Commercial Banks
    Notes: Commercial Banks
    Notes: Covered Mortgage bonds are issued by only one institution, the only housing finance institution of country, HBFCL, which are still within their tenure.
    Notes: Covered Mortgage bonds are issued by only one institution, the only housing finance institution of country, HBFCL, which are still within their tenure.
    Notes: Covered Mortgage bonds are issued by only one institution, the only housing finance institution of country, HBFCL, which are still within their tenure.
    Notes: Covered Mortgage bonds are issued by only one institution, the only housing finance institution of country, HBFCL, which are still within their tenure.
    Notes: Covered Mortgage bonds are issued by only one institution, the only housing finance institution of country, HBFCL, which are still within their tenure.
    Notes: Covered Mortgage bonds are issued by only one institution, the only housing finance institution of country, HBFCL, which are still within their tenure.
    Notes: Covered Mortgage bonds are issued by only one institution, the only housing finance institution of country, HBFCL, which are still within their tenure.
    Notes: Debt burden ratio Amortized PMT should not exceed 50% of the net disposable income of the prospective borrowers
    Notes: Deposit has been the primary source of funding for the banks as evident from the fact; for HBL deposit is 75% and 73% in FY 16 & 15 respectively as % of total asset, while for UBL deposit as % were 74.09% and 75.35%. However in case of HBFCL the primary source is credit line from SBP
    Notes: Division 8 of first schedule-part 1 tax rate on capital gain of immovable property.
    Notes: Division 8 of first schedule-part 1 tax rate on capital gain of immovable property.
    Notes: Division X part 4 of first schedule. This is advance tax
    Notes: Division X part 4 of first schedule. This is advance tax
    Notes: Due to manual records it takes time for verification of title deed and legal status. Again there is a lengthy process of advertisement and documentation. Lastly bureaucratic inefficiency plays a key role in delaying the entire process
    Notes: Due to stringent reules and regulations of SBP all banks and FDI use in house department for loan servicing as being cautionary for compliance.
    Notes: exemption on mortgage income is in the pipeline yet it has not been finalized. http://fp.brecorder.com/2017/04/20170419170036/
    Notes: HBFCL
    Notes: HBFCL has a total share of 23% in the entire portfolio of housing finance.
    Notes: HBFCL was given line of credit from SBP for an amount of 11242.3 mill which was secured against certificate by the company that are guaranteed by the GOP.But it is important to note that the company is owned by SBP and is it's subsidiary. Other than that there are no subsidized funding
    Notes: House Building Finance Company Limited (HBFL) and Development finance institutions (DFIs)
    Notes: House Building Finance Company Limited (HBFL) and Development finance institutions (DFIs)
    Notes: House Building Finance Company Limited (HBFL) and Development finance institutions (DFIs)
    Notes: House Building Finance Company Limited (HBFL) and Development finance institutions (DFIs)
    Notes: Houses with free rent and subsidized rent are considered as public/social rental units.
    Notes: Houses with free rent and subsidized rent are considered as public/social rental units.
    Notes: Housing finance cannot exceed a tenure of 25Yrs
    Notes: Housing finance prudential regulation impose many restriction on the lender e.g for solar energy renovation financing can be extend to 10 years.
    Notes: In order to remain compliant with the SBP rules and regulation, all banks and FDIs have to generate credit report before any consumer financing and maintain that report for the purpose of documentation.
    Notes: In pakistan potwari is incharge of creation of lien as well as maintaining records. With the emergence of mortgage from financial institution, these institution are well established and strong enough to enforce lien on property yet legal framwork is too weak, often leading to long legal case time before any decision is being made. This is why banks prefer to advance loan in developed urban areas rather than areas governed by systems of potwari.
    Notes: It is defined as debt burden ratio which states that amortized PMT including all other financing PMT should not exceed 50% of net disposable income of the prospective.
    Notes: July 2012 to June 2013
    Notes: July 2012 to June 2013
    Notes: July 2013 to June 2014
    Notes: July 2013 to June 2014
    Notes: July 2014 to June 2015
    Notes: July 2014 to June 2015
    Notes: July 2017 to June 2018
    Notes: July 2017 to June 2018
    Notes: Mortgage loan / total private credit outstanding at the end of year-SBP
    Notes: Mortgage loan / total private credit outstanding at the end of year-SBP
    Notes: National Percentage
    Notes: National Percentage
    Notes: National Percentage
    Notes: National Percentage
    Notes: No data on # of loans
    Notes: No such subsidy to the lending side exist yet, although it has been proposed to exempt income from mortgage from tax as an incentive yet has not been approved.
    Notes: Only 2007 numbers available: 22.54 million dwelling units
    Notes: Only 2007 numbers available: 22.54 million dwelling units
    Notes: Only 2007 numbers available: 22.54 million dwelling units
    Notes: Only 2007 numbers available: 22.54 million dwelling units
    Notes: Only 2007 numbers available: 8.03 million dwelling units
    Notes: Only 2007 numbers available: 8.03 million dwelling units
    Notes: Only 2007 numbers available: 8.03 million dwelling units
    Notes: Only 2007 numbers available: 8.03 million dwelling units
    Notes: Only members of CIB can obtain credit data. The credit data is defined confidential as per sec 29 of Credit bureau act.
    Notes: Pg 22 of HIES. Given average monthly household income for 13-14 and 15-16
    Notes: Previously it was a common practice to use third party in servicing loans specially recovery but recently SBP has established stringent rules and guidelines for debt servicing due to which all banks now have in house department for this purpose.
    Notes: Refers to average LTVs of all banks, DFIs, and HBFCL
    Notes: Refers to average LTVs of all banks, DFIs, and HBFCL
    Notes: Refers to houses built with wood/bamboo roofs
    Notes: Refers to houses built with wood/bamboo roofs
    Notes: Section 28
    Notes: Share of HBFCL in gross loan amount outstanding.
    Notes: State Bank regulates the underwriting rules.
    Notes: Such institutions do not provide house financing facilities
    Notes: Tax exemption on reit, allowable expenses
    Notes: The outstanding house financing of microfinance bank stood at RS 176.78 mil. Apna ghar is a non-collateralized mortgage loan offered by apna bank.
    Notes: There are many microfinance ngos working in pakistan. One example is akhuwat which provide house financing.
    Notes: there is tax on rental income from property as per sec 15. Other than that there is no wealth tax or any other tax on holding property unless sold
    Notes: there is tax on rental income from property as per sec 15. Other than that there is no wealth tax or any other tax on holding property unless sold
    Notes: there is tax on rental income from property as per sec 15. Other than that there is no wealth tax or any other tax on holding property unless sold where tax on capital gain applies
    Notes: there is tax on rental income from property as per sec 15. Other than that there is no wealth tax or any other tax on holding property unless sold where tax on capital gain applies
    Notes: This differs from banks to banks as per their policy.
    Notes: This is average lending rates of all banks as calculated from SBP data
    Notes: This is difference b/w Average deposit rate and Average Mortgage lending rate
    Notes: This is Mortgage made during the year divided by all private sector credit outstanding at the end of the year 2015
    Notes: This is size of low-cost housing. Country-wide average size is not available.
    Notes: This is size of low-cost housing. Country-wide average size is not available.
    Notes: This is size of low-cost housing. Country-wide average size is not available.
    Notes: This is size of low-cost housing. Country-wide average size is not available.
    Notes: This is size of low-cost housing. Country-wide average size is not available.
    Notes: This is taken from the WDI database and it is the time to register a property.
    Notes: This percentage amount includes public banks, private banks and Islamic banks. (excluding HBFCL)
    Notes: To convert household income from nominal to real term GDP deflator of respective year is being used
    Notes: Yes credit information bureau , established by SBP to collect and maintain credit data. However there are also 4 privately owned credit bureaus.