Pakistan, like most developing countries, is facing an acute shortage of housing. This inadequacy is adversely affecting the living conditions of millions of people, particularly those who fall in the financially underserved segment of the populace. It is estimated that the annual demand for housing units is approximately 700,000 a year, whereas, only about half of this demand is met. On the whole, the housing deficit is estimated between ten to twelve million units and is growing every year.

Increasing population, socio-economic challenges, shrinking real estate particularly in urban centers, and lack of affordable housing finance facilities are some of the factors that have led to a situation wherein millions of people are forced to live in shanty towns and slums. The combined volume of outstanding housing finance from banks and DFIs stands at a meager 0.25 percent of the GDP and the terms and conditions of such finance are largely prohibitive, especially for the low-income segment of society.