This document is an initial report proposed Pakistan Mortgage Refinance Company and its proposed outline. Economy of Pakistan is the 26th largest economy in the world in terms of purchasing power, and the 47th largest in absolute dollar terms. Pakistan’s economy mainly encompasses textiles, chemicals, food processing, agriculture and other industries.  Fiscal year 2008‐ 09 remained difficult year for Pakistan’s economy. Several political and economic events, both on domestic and external front, occurred unexpectedly. These events include: disturbed political conditions; an unstable law and order situation; supply shocks; soaring oil, food and other commodity prices; softening of external demand; and turmoil in the international financial market. All these events have adversely affected the key macroeconomic fundamentals of Pakistan during the fiscal year 2008‐09.