In Pakistan, the housing sector can be very instrumental in poverty reduction and economic growth as it is labor intensive and has forward and backward linkages with more than forty industries. Investment in the housing sector leads to the creation of more jobs in a number of allied sectors. Presently, the State Bank of Pakistan is working on a few initiatives to create an enabling environment for banks/DFIs to increase the outreach of housing finance. It involves relatively greater sums of financing compared to other consumer finance products and is extended for a longer period of time. Keeping in view the peculiar nature of housing finance, and to facilitate banks/DFIs in enhancing housing finance portfolio, SBP in consultation with different stakeholders, has issued a separate set of Prudential Regulations specifically for Housing Finance.