Historically and globally, providing affordable housing has proven to be not just a matter of social welfare, but also a driver of economic stability, social cohesion, and national progress. Governments that have focused on enabling home ownership for lower-income citizens have found that giving people a stake in the roof over their heads is a strong investment in their future, and by extension, in the nation’s future. For a country like Pakistan, which faces a housing shortage, rapid urbanisation, and limited access to formal finance, the opportunity to link housing and growth is clear. Our banking system, especially institutions already offering Shariah-compliant solutions, is well placed to turn this ambition into reality. Looking at the global context, the latest figures from the Organisation for Economic Co-operation and Development (OECD) show that, on average, across advanced economies 71 per cent of households either own their home outright or hold a mortgage, compared with 24 per cent who rent. Countries in Central and Eastern Europe, for example, report homeownership rates above 70 per cent, largely due to post-socialist privatisations but also as the result of deliberate policy. At the same time, affordability remains a challenge. The house-price-to-income ratio has risen in many countries since 2010; in the OECD, the average index was 116.2 in 2024, meaning housing prices have outpaced income growth by over 16 per cent since 2015. One notable example is Singapore, which introduced affordable housing policy almost from its founding. Over 90 per cent of citizens live in supported or subsidised flats, and the home ownership rate is close to 90 per cent. Singapore shows that an inclusive home-ownership strategy creates not just households, but stakeholder-citizens invested in both community and economy. Why does housing matter so much for the economy and society? Ownership turns tenants into owners, shifting what was “cost me” into “invested by me.” Homeowners are more likely to maintain property, engage in their neighbourhoods, and plan for the long term. The ripple effects include higher consumer confidence, better access to formal labour markets, and more stable families. Economically, housing construction generates jobs across multiple sectors, from cement and plumbing to architecture and urban services, and stimulates domestic demand. When governments and financial institutions work together to make housing affordable, the entire economy benefits from stronger and more inclusive growth. Housing also encourages social stability, as secure homes allow people to focus on education, work, and community development rather than short-term survival, creating a more productive and harmonious society. In Pakistan, the country faces a significant housing gap, especially for low- and middle-income households who cannot afford conventional mortgages or face barriers to qualifying. Following the economics of investment and ownership, the State Bank of Pakistan launched “Mera Ghar, Mera Ashiana,” a scheme to subsidise financing and invite banks to share risk, making home ownership possible for more people. In this context, local banks are uniquely positioned to bridge the gap. Faysal Bank, for example, launched Diminishing Musharakah, which allows the bank and the customer to jointly own the property until the customer takes full ownership, and partnered with Akhuwat to identify eligible low-income individuals and channel finance to them. Banks, particularly those offering Shariah-compliant products, can play a dual role: they can fulfil a social purpose while expanding their market into underserved segments. Islamic banking offers a distinct advantage in Pakistan’s housing market. Shariah-compliant financing avoids conventional interest, which matters in a country where demand for such products is strong. Globally, countries that integrated housing affordability into economic policy achieved better outcomes. Singapore’s state-led housing programme and the Eastern European privatisations both show that the link between homeownership and broader economic agency is strong. The lesson is not just to build more houses, but to build affordable houses supported by financing that ordinary households can access, with long tenures, reasonable costs, support measures, and institutional backing. Affordable housing also strengthens local economies as homeowners invest in improvements, local services, and small businesses, creating a multiplier effect that benefits communities over generations. For Pakistan, applying this insight means banks must partner with regulators, housing agencies, and developers; financial products must target underserved groups such as first-time buyers and low-income families; tenures must be long enough to keep monthly payments manageable; down-payments and transaction costs must be reduced or subsidised; and Shariah-compliant solutions must be part of the mix. In a country with frequent economic challenges, housing offers stability. Ownership gives dignity, enables generational wealth, anchors families, reduces pressure on state welfare, and empowers citizens. For Pakistan, the path is clear: affordable housing is more than bricks and mortar; it is a strategic tool for inclusion, economic momentum, and national resilience. Banks like Faysal Bank that act now will not only serve a market but help shape the future by enabling more Pakistanis to own a home, supporting a more stable, inclusive, and progressive economy.