Student Name

Muneeb IqbalFollow


Master of Science in Islamic Banking & Finance


Department of Finance

Faculty/ School

Faculty of Business Administration (FBA)

Date of Submission

Fall 2021


Dr. Heman Das Lohano, Professor and Program Director PhD/MS (Economics) & BS (EM), Department of Economics


Home is a basic necessity of every living being of this planet. From last few decades cost of land is increasing with the pace of rocket all around the world. Due to increasing cost of open plots, built-up lands, and apartments, especially in the rural and cosmopolitan cities in Pakistan like Karachi, Lahore, Islamabad, etc., purchase of the house on the cash payment basis is very difficult for middle-middle class and lower-middle class. To meet the deficiency, these people need financing facility from institutions like conventional banks, Islamic banks, and development financial institutions.

The purpose of the study is to highlight the role of financial institutions towards house finance lending, especially, role of Islamic financial institutions towards house finance because the majority people living in Pakistan are Muslims and Muslims have a faith regarding severity of Interest/Usury.

This Research Study shows the growth rate of Islamic house finance and interest-based house finance enabling us to determine the performance of both sectors. Comparative analysis shows that the performance of Islamic banks for house financing has grown more than four times from 2010 to 2019 where the performance of interest-based institutions declined to half. Number of borrowers for Interest based banks declined to 40% whereas number of borrowers for Islamic banks raised more than 4 times. Besides the numbers, research studies and literature reveal many determinants effecting house financing including income elasticity, lake of supply of housing schemes and high-rise projects especially in rural areas.

Document Type

Restricted Access

The full text of this document is only accessible to authorized users.