Revision of Pakistan"s mortgage foreclosure laws

The only systematic program of mortgage lending in Pakistan is currently being conducted by the Housing Building Finance Corporation which is essentially controlled by the Ministry of Finance. The country"s Seventh Development Plan (effective FY88) announces a policy of shifting responsibility for development from the government to the private sector. The Plan also indicates the desirability of establishing a private housing finance system. Existing studies show that a major impediment to the establishment of a private sector housing finance system is the absence of a viable means for recovery of debts through a workable mortgage foreclosure procedure. This report explores the country"s current lending practices, a revision of Pakistan"s mortgage foreclosure scheme, and elements of a restructured foreclosure system. (Author abstract)