LAHORE: State Bank of Pakistan (SBP) Deputy Governor (FM, IB & SI) Saeed Ahmad said on Tuesday that SBP was playing its due role in the development of housing finance in the country. Addressing as chief guest at Housing Finance (HF) Awareness Programme organized by the SBP-Banking Services Corporation (BSC) and banks at a local hotel, he said that since shelter was the very basic need of every individual, the present government took various initiatives to bolster the role of housing in Pakistan. "We are geared towards a prosperous Pakistan with Housing for All," he added.
The SBP Deputy Governor said that incorporation of Pakistan Mortgage Refinance Company (MRC) was one of the SBP's major steps in housing finance, adding that through this company, financial institutions would be able to extend housing loans in much more quantum, as their liquidity issues would be addressed by it, besides help in increasing the housing stock in the country and taking a step forward towards affordable housing.
He said, the Bank also issued a separate set of prudential regulations for housing finance in Pakistan that enabled financial institutions to be in a better position to extend housing finance. While, various other initiatives including credit guarantee schemes for low cost housing finance- were under consideration in coordination with federal government, he maintained. Due to the SBP efforts in creating enabling regulatory environment for housing finance, he mentioned, around 24 financial institutions were now offering housing finance in Pakistan.
"This enhanced availability coupled with low mark-up rate regime has increased the housing finance portfolio of Pakistan significantly to Rs 58 billion; an increase of more than 9 percent in a year. I am hopeful that after approval of the foreclosure law from the parliament, the housing finance will be on the faster growth trajectory," he asserted.
Saeed Ahmad said that despite its immense importance most of the housing finance was arranged through personal sources, while only limited number of housing transactions were arranged through formal financial sector.
Keeping in view the efforts of SBP in facilitating financial institutions to extend housing finance, along with low markup rate regime, this trend highlighted another direction; the demand side of housing finance.
The Deputy Governor said that another important factor hindering the growth of housing finance was the lack of awareness about the benefits of housing finance and how it could help in realizing their dream of owning a house- among general public.
Therefore, the SBP took the initiative of organizing awareness sessions for general public in different cities of Pakistan.
Among others the SBP-BSC Managing Director Qasim Nawaz, Director (IH & SMEFD, SBP) Ghulam Muhammad Abbasi, Punjab Housing & Town Planning Authority's DG Capt Muhammad Saeed, the LDA Additional Director General Ms. Amina Munir, the FPCCI VP/Regional Chairman Mian Rehman Aziz, Acting Chief Manager (SBP BSC Lahore) Syed Dabir Shah and Additional Director (IH & SMEFD-SBP) Dr. Muhammad Saleem were prominent on the occasion.
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