Govt to Launch Loan Options for Home Buyers

The government has finalized 14 major facilities to be provided to the housing projects to ensure access to finance including the establishment of an Apex Housing Finance Institution. This has been agreed during the last meeting of the Working Group on “Access to Finance” under the Chairmanship of Hafiz Mian M. Nauman (Ex-MPA Punjab), Convener at Naya Pakistan Housing Development Authority (NAPHDA). Following are the major recommendations of the Working Group on “Access to Finance” to give access to finance for the housing sector: According to sources, Dr. Faisal Shafaat the representative of the State Bank of Pakistan gave a detailed briefing regarding their regulatory framework in the form of prudential regulations. He explained that the capital adequacy ratio enhanced to 35 percent and the banking sector was able to disburse Rs. 233 billion in mortgage financing. He also informed about the microfinance policy of SBP in connection with access to finance for the low-income group, whereby for Mera Pakistan Mera Ghar Scheme (MPMG), Rs. 93 billion was disbursed. He highlighted several execution and subsidy issues in view of the IMF Policy. The Chair propounded for relaxation in the policy rates (KIBOR) policy to facilitate easy and fast-track access to finance for the development of the housing sector.