KARACHI: Pakistan Banks Association (PBA) has announced supports to growth in housing and construction finance. The association believes that housing and construction finance sector is a critical contributor to the overall economy, because of its multiple linkages to other avenues of economic development.
However, Housing & Construction Finance is presently very low in Pakistan, contributing less than one percent of the country's GDP; it is also one of the lowest in the region and comparable countries.
The association, in a statement, has welcomed the positive steps taken by the Government & State Bank of Pakistan that are key enablers for growth of the Housing & Construction finance sector.
These steps include low interest rates, more effective foreclosure laws and construction being accorded an 'Industry' status. While there are still a few unresolved issues which are being actively worked upon, PBA believes it is a good time for its member banks to see this as a growth area for future lending on a secured basis, with reasonable spreads. Given its widespread benefits for the economic development of Pakistan, PBA has assured full support the growth of Housing & Construction Finance and encouraged its member banks to view it as a sound business proposition.
Copyright Business Recorder, 2020
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