The quarter ending Dec 31, 2013 depicted a decrease in gross outstanding of housing finance of Rs.3.7 billion (6.72 percent) over the year and decline of 2.61 percent (Rs. 1.37 billion) over the quarter. However, quarterly disbursements over the yester quarter increased by 1.5 percent. The increase in quarterly disbursement was majorly contributed by Islamic banks which disbursed Rs. 1.44 billion during the quarter. In absolute terms, NPLs of the housing finance portfolio decreased over a period of year and in terms of their ratio to outstanding they were recorded at 31 percent from 34.44 percent. Further, banks have not followed the housing finance products due to lack of implementation of foreclosure law, defective titles and availability of risk free investment avenues. Another reason hindering the growth of housing finance in Pakistan is reluctance of banks for lending outside few big cities.