Pakistan and the Application of Mortgage Law

In South Asia, India's ratio stands at about 9% but Pakistan's ratio of less than 1% is astoundingly far behind comparative economies.
             For the first time in history, more people now reside in urban rather than in rural areas. The successful development of efficient and stable mortgage finance systems is of global importance. Plenty of skills and resource are poured into making the mortgage finance systems more efficient in advanced economies, but in emerging markets the demand for housing finance services over the next 30 years is a dire need. In these economies, residential mortgage lending is small in scale, difficult to access and only bank- based with minimal dependency on capital markets. This lack of financial services in developing countries has a negative effect on the efficiency of urban investments, of which housing constitutes about 60 percent if the experience of advanced economies in any guide. Relative financial development studies in developed economies have made considerable strides in the last decade, especially considering the positive causal impact of financial development on economic growth but in stark contrast, comparative work on housing finance systems has barely begun in developing nations. There is still a great need of in depth research on the great diversity of experiences across the 184 countries that are official members of the International Monetary Fund (IMF) and the World Bank.
             From the perspective of world history, urbanization is a modern trend and the second half of the 20th Century was distinguished by the phenomenon great speed. The difference in the 21st century is that urbanization is taking place more in emerging economies. It is well known that housing finance does not stand apart from economic development and there are many recognizable negative consequences if housing finance is not easily accessible.