Sindh Real Estate News and Land Insights

Karachi | ReNews Pakistan
The State Bank of Pakistan has introduced a new housing finance framework after making wide-ranging changes to the sector’s prudential regulations, allowing eligible borrowers to obtain financing of up to 90% of a property’s value. The revised rules also permit housing loans of up to Rs5 million to be extended against a lien on the property, while Green Property Certificates will also be accepted.
The revised Prudential Regulations take immediate effect and replace several earlier circulars issued between 2019 and 2021. The new framework is aimed at improving public access to housing finance while strengthening risk management requirements for banks and development finance institutions.
Under the new rules, housing finance will no longer be limited to the purchase of completed houses or apartments. Financing may also be obtained for constructing a house on an owned plot, purchasing a plot for subsequent construction, extending or adding to an existing home, carrying out repairs and renovations, and installing renewable energy systems in residential properties.
The maximum tenure for housing finance has been set at 30 years, while financing for renewable energy systems may be provided for a maximum period of 10 years.
One of the most significant changes concerns the loan-to-value ratio. The SBP has set the maximum ratio at 90:10, meaning banks and financial institutions may finance up to 90% of a property’s value, subject to eligibility requirements and their own assessment processes. The borrower will be required to contribute the remaining amount.
At the same time, lenders will be required to assess the borrower’s repayment capacity. The monthly instalment on the proposed housing loan, together with payments on all other consumer loans, must not exceed 65% of the borrower’s net disposable income.
The new framework also seeks to improve access to housing finance for individuals whose income does not come from a regular salary or other traditionally documented sources. Banks and DFIs have been directed to use informal-income estimation models issued by the Pakistan Banks Association to assess the repayment capacity of such applicants.
Documentation requirements have also been eased for small and mid-sized housing loans. Housing finance of up to Rs5 million may be extended by creating a lien on the property. For this purpose, Green Property Certificates issued by the Punjab Land Records Authority, or equivalent certificates issued by relevant authorities in other provinces, will also be acceptable.
For housing finance exceeding Rs10 million, however, a formal property valuation will be mandatory. The valuation must be carried out by a valuer included on the Pakistan Banks Association’s approved panel.
Banks and DFIs will also be required to ensure comprehensive insurance or Takaful coverage for residential units financed under the scheme. Standardised financing documents prescribed by the Pakistan Banks Association will also have to be used.
The SBP has also formalised the process for digital housing finance. Digital signatures may be authenticated through a one-time password or another form of two-factor verification, paving the way for more of the application and documentation process to be completed online.
A four-tier classification system has also been introduced for troubled housing loans. Under the framework, loans will be placed in progressively higher-risk categories after 90 days, 180 days, one year and two years of non-payment, enabling lenders to take timely action against potential losses.
The regulations also clarify rules for rescheduling and restructuring housing loans. In normal circumstances, a loan may be rescheduled or restructured only once within a two-year period. The repayment tenure may be extended by up to five years where necessary, although the total loan period cannot exceed 30 years.
The SBP has further directed banks and DFIs to introduce simplified and standardised housing finance application forms for salaried individuals, formal business owners and applicants earning income through informal sources.
These forms will be made available in both Urdu and English, in paper as well as digital formats, with the aim of making the housing finance application process more accessible and consistent for borrowers across different income groups.

Karachi | ReNews Pakistan
The State Bank of Pakistan (SBP) has revised its Prudential Regulations for Housing Finance, introducing a new lending framework aimed at expanding access to home financing while strengthening risk management requirements for banks and development finance institutions (DFIs).
The revised regulations take immediate effect and replace several earlier circulars issued between 2019 and 2021.
Under the new framework, housing finance can be obtained for purchasing a house or apartment, constructing a house on an owned plot, purchasing a plot for subsequent construction, extending or expanding an existing house, carrying out renovation and installing renewable-energy solutions in residential properties.
The maximum financing period has been set at 30 years for housing loans and 10 years for renewable energy solutions.
A maximum loan-to-value ratio of 90:10 has also been prescribed, potentially allowing banks and DFIs to finance up to 90% of a property's value, subject to applicable requirements.
To assess affordability, total monthly repayments on the proposed housing loan, together with the borrower's other outstanding consumer-finance obligations, must not exceed 65% of net disposable income.
The revised rules also seek to improve access for people earning outside the formal salaried sector. Banks and DFIs have been directed to use informal-income estimation models circulated by the Pakistan Banks' Association (PBA) to determine borrowers' repayment capacity.
For housing finance of up to Rs5 million, lenders may extend financing by marking a lien on the property, including against a Green Property Certificate issued by the Punjab Land Records Authority or an equivalent certificate issued by the relevant provincial authority.
For financing exceeding Rs10 million, valuation of the property by a PBA-panel valuator will be mandatory.
Banks and DFIs must obtain comprehensive insurance or takaful coverage for financed housing units and use standardized financing documents circulated by the PBA. Digital signatures will have to be authenticated through one-time passwords or another form of two-factor authentication.
The SBP has also introduced a four-tier classification system for problematic housing loans: OAEM after 90 days overdue, Substandard after 180 days, Doubtful after one year and Loss after two years. Provisioning will be based on IFRS-9 Expected Credit Loss or Forced Sale Value calculations, whichever results in the higher requirement.
Rescheduling or restructuring will generally be allowed only once within two years. Any extension in the loan period will be limited to five years while remaining within the overall 30-year maximum tenor.
Banks and DFIs have additionally been directed to introduce simplified and standardized housing-loan application forms for salaried individuals, formal businesses and informal-income applicants. These must be available physically and digitally in both Urdu and English.

Karachi | ReNews Pakistan
Pakistan Petroleum Limited (PPL) has announced a significant gas discovery at the Dolphin X-1 well in the Sirani Block, located in the coastal district of Sujawal, Sindh. The find is being described as the first successful hydrocarbon discovery from the Jurassic Chiltan Formation in the Lower Indus Basin, potentially opening a new exploration frontier in Pakistan’s coastal and shallow offshore regions.
According to PPL, drilling of the Dolphin X-1 well began on April 17, 2026, and reached a depth of approximately 3,850 metres. The well was drilled primarily to assess the hydrocarbon potential of the Chiltan Formation.
During testing, the well produced around 942,000 standard cubic feet of gas per day, with a heating value of approximately 1,000 British thermal units per cubic foot. The wellhead flowing pressure was recorded at 211 pounds per square inch.
PPL said the key significance of the discovery lies in confirming the presence of an active petroleum system in the area. The result has also strengthened the exploration potential of the coastal marshlands and their possible extension into adjoining shallow offshore areas.
The Sirani Block is located in difficult marshy terrain, where oil and gas exploration is considered technically challenging. PPL carried out specialised two-dimensional and three-dimensional seismic surveys in the area, which helped identify the prospect that led to the drilling of Dolphin X-1.
PPL operates the Sirani Block with a 75 percent working interest, while Government Holdings Private Limited holds the remaining 25 percent stake.
Despite the positive initial results, the overall size of the gas reserves and their commercial viability have yet to be determined. Preliminary data suggest that the reservoir may have relatively low permeability, requiring further geological and engineering studies.
If additional appraisal work and future wells confirm the continuity of the newly identified hydrocarbon play, Sindh’s coastal belt and adjoining shallow offshore areas could emerge as an important new direction for Pakistan’s oil and gas exploration efforts.