{"id":63494,"date":"2025-01-24T20:28:29","date_gmt":"2025-01-24T15:28:29","guid":{"rendered":"https:\/\/dailyausaf.com\/en\/?p=63494"},"modified":"2025-01-24T20:28:29","modified_gmt":"2025-01-24T15:28:29","slug":"govt-to-provide-easy-loans-for-housing-projects","status":"publish","type":"post","link":"https:\/\/dailyausaf.com\/en\/pakistan\/govt-to-provide-easy-loans-for-housing-projects\/","title":{"rendered":"Govt to provide easy loans for housing projects"},"content":{"rendered":"

LAHORE: In a ground breaking move, the government has finalized 14 major facilities to support housing projects and ensure access to finance, including the establishment of an Apex Housing Finance Institution<\/a>.<\/p>\n

These recommendations were agreed upon\u00a0<\/span>in<\/span> the last meeting of the Working Group on “Access to Finance” under the\u00a0 Chairmanship of Hafiz Mian M. Nauman, Convener at Naya Pakistan Housing Development Authority (NAPHDA<\/a>).<\/span><\/p>\n

The\u00a0<\/span>key<\/span>\u00a0recommendations include\u00a0<\/span>a<\/span>\u00a0<\/span>single<\/span>\u00a0<\/span>digit\u00a0<\/span>policy rate<\/span>,<\/span>\u00a0<\/span>rationalization<\/span>\u00a0<\/span>of<\/span>\u00a0<\/span>operational<\/span>\u00a0<\/span>cost<\/span>\u00a0<\/span>for<\/span>\u00a0<\/span>banks, and resumptions <\/span>resumption<\/span>\u00a0<\/span>of\u00a0<\/span>markup\u00a0<\/span>subsidy<\/span>\u00a0<\/span>on<\/span>\u00a0low-cost and affordable housing<\/a>.\u00a0<\/span>It<\/span>\u00a0<\/span>has<\/span>\u00a0<\/span>also<\/span>\u00a0<\/span>proposed<\/span>\u00a0<\/span>mortgage bonds, microfinance i<\/span>nstitution<\/span>, and\u00a0<\/span>foreclosure laws.<\/span><\/p>\n

It<\/span>\u00a0<\/span>was<\/span>\u00a0<\/span>also\u00a0<\/span>suggested<\/span>\u00a0that\u00a0<\/span>the “<\/span>banks\u00a0<\/span>should\u00a0<\/span>allocate\u00a0<\/span>at least\u00a0<\/span>10% of their private sector credit to the Housing and Construction Industry and\u00a0<\/span>put<\/span>\u00a0<\/span>in place\u00a0<\/span>a Risk Management Framework to mitigate\u00a0<\/span>the\u00a0<\/span>risks associated with mortgage financing”.<\/span><\/p>\n

They <\/span>further<\/span>\u00a0<\/span>proposed\u00a0<\/span>strengthening the Pakistan Mortgage Refinance Company\u00a0<\/span>through budgetary support and enhanced\u00a0<\/span>coordination<\/span>\u00a0<\/span>between<\/span>\u00a0banks and financial institutions for subsidized credit facilities. <\/span><\/p>\n

The group also proposed awareness campaigns and financial literacy programs\u00a0<\/span>for<\/span>\u00a0<\/span>consumers<\/span>\u00a0<\/span>and<\/span>\u00a0<\/span>product<\/span>\u00a0<\/span>development of innovative mortgage financing products to\u00a0<\/span>address<\/span>\u00a0<\/span>the<\/span>\u00a0<\/span>needs of\u00a0<\/span>all income groups.<\/span><\/p>\n

Dr. Faisal Shafaat, the representative of the State Bank of Pakistan,\u00a0<\/span>said that\u00a0<\/span>the capital adequacy ratio has been\u00a0<\/span>increased<\/span>\u00a0to 35 percent<\/span>\u00a0and\u00a0<\/span>that\u00a0<\/span>the banking sector has\u00a0<\/span>managed<\/span>\u00a0<\/span>to disburse Rs. 233 billion in mortgage financing. He\u00a0<\/span>further<\/span>\u00a0<\/span>said<\/span>\u00a0<\/span>the microfinance policy of SBP,\u00a0<\/span>under\u00a0<\/span>which\u00a0<\/span>Rs<\/span>\u00a093 billion\u00a0<\/span>have<\/span>\u00a0<\/span>been disbursed to\u00a0<\/span>the Mera Pakistan Mera Ghar Scheme<\/span>.\u00a0<\/span><\/p>\n

He,\u00a0<\/span>however,\u00a0<\/span>pointed<\/span>\u00a0<\/span>out<\/span>\u00a0<\/span>certain<\/span>\u00a0<\/span>issues<\/span>\u00a0<\/span>in implementation\u00a0<\/span>and\u00a0<\/span>subsidies<\/span>\u00a0<\/span>in\u00a0<\/span>light<\/span>\u00a0of the IMF Policy,\u00a0<\/span>whereupon<\/span>\u00a0the Chair proposed relaxation in the policy rates (KIBOR) to facilitate easy and fast-track access to finance for the development of the housing sector<\/span>.<\/span>\u00a0<\/span><\/p>\n

The government’s\u00a0<\/span>effort<\/span>\u00a0to\u00a0<\/span>facilitate<\/span>\u00a0the housing sector\u00a0<\/span>is,<\/span>\u00a0<\/span>indeed,\u00a0<\/span>commendable,\u00a0<\/span>but<\/span>\u00a0the establishment of an Apex Housing Finance Institution\u00a0<\/span>marks<\/span>\u00a0a significant\u00a0<\/span>initiative<\/span>\u00a0<\/span>in<\/span>\u00a0<\/span>the<\/span>\u00a0<\/span>direction of facilitating\u00a0<\/span>access to finance for housing projects.<\/span><\/p>\n

Similarly,<\/span>\u00a0<\/span>innovative mortgage financing products\u00a0<\/span>are<\/span>\u00a0<\/span>being<\/span>\u00a0<\/span>developed<\/span>\u00a0<\/span>and<\/span> microfinance institutions are expanding to serve <\/span>the needs of low-income groups and\u00a0<\/span>ensure<\/span>\u00a0<\/span>more\u00a0<\/span>affordable housing.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

LAHORE: In a ground breaking move, the government has finalized 14 major facilities to support housing projects and ensure access to finance, including the establishment of an Apex Housing Finance Institution. These recommendations were agreed upon\u00a0in the last meeting of the Working Group on “Access to Finance” under the\u00a0 Chairmanship of Hafiz Mian M. Nauman, […]<\/p>\n","protected":false},"author":9,"featured_media":45915,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[26026,26027],"class_list":["post-63494","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-pakistan","tag-apex-housing-finance-institution","tag-govt-to-provide-housing-loans"],"_links":{"self":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/posts\/63494","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/comments?post=63494"}],"version-history":[{"count":3,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/posts\/63494\/revisions"}],"predecessor-version":[{"id":63497,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/posts\/63494\/revisions\/63497"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/media\/45915"}],"wp:attachment":[{"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/media?parent=63494"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/categories?post=63494"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dailyausaf.com\/en\/wp-json\/wp\/v2\/tags?post=63494"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}