Published on, Aug. 31 -- August 31, 2025 1:15 PM

Pakistan's mortgage market is showing early signs of recovery in 2025 after two years of decline, with housing loans rising modestly in June and July compared to last year's figures.

State Bank data revealed outstanding mortgage loans at Rs207,038 million in June 2025, marking a 1.7% increase over June 2024, while July loans climbed 2.8% year-on-year to Rs208,477 million.

The improvement comes as lower borrowing costs and improved liquidity encourage demand for housing finance. A stable economic environment and relaxed monetary stance have made home financing slightly more accessible to consumers.

However, mortgage lending levels remain below the peaks of 2023, when June loans stood at ...