Low-cost housing finance: Bank Alfalah signs agreement with PMRC

KARACHI: Pakistan Mortgage Refinance Company (PMRC) and its partner financial institutions (PFIs) including Bank Alfalah joined hands to provide and promote affordable housing finance in the country by signing Credit Guarantee Agreements with Credit Guarantee Trusts for low-cost housing, set up by the Government of Pakistan with PMRC as Trustee.

In the ceremony held at PMRC’s office in Karachi Credit Guarantee Agreements were signed with National Bank of Pakistan (NBP), United Bank Limited (UBL), Bank Alfalah Limited (BAFL) and Dubai Islamic Bank Pakistan Limited (DIBPL), which will allow them to avail risk cover for low-income housing finance. Soneri Bank limited (SBL) also participated in the event to partner with PMRC to obtain refinancing facility to help them grow their housing portfolio.

These initiatives will allow the banks to partially alleviate the credit risk entailed and provide affordable mortgage facilities to the low-income, particularly those in the informal sector.

PFIs were represented by their Presidents Arif Usmani – CEO NBP, Shahzad Dada – CEO UBL, Atif Bajwa – CEO BAFL, Junaid Ahmed – CEO DIBPL and Muhtashim Ahmad Ashai – CEO SBL.

Mudassir H. Khan, MD & CEO, PMRC expressed his views saying, “It is indeed a proud moment for PMRC and all PFIs, as we recognize the importance of mutual coordination between the financial institutions for the growth of affordable housing in the country.

In particular, the Credit Guarantee will play a key role in the promotion of low-income housing and realizing the Government of Pakistan’s vision of making affordable housing a reality.”

Presiding the ceremony, Sima Kamil, Deputy Governor SBP praised the efforts of PMRC and PFIs for this groundbreaking event and said that this endeavour is not only a step forward in making the dreams of many low-income earners of owning a house come true but also an example of turning visions into reality.—PR

Copyright Business Recorder, 2021