Pakistan and World Bank Ink $85 Million Housing Finance Project

Federal Minister for Economic Affairs Sardar Ayaz Sadiq Wednesday witnessed the signing ceremony of agreements for the “Pakistan Housing Finance Project” worth $85 million with the World Bank at the Ministry of Economic Affairs. Ministry of Economic Affairs Secretary Mian Asad Hayaud Din and World Bank (WB) Acting Country Director Gailius J. Draugelis signed the Financing Agreement while the representative of Pakistan Mortgage Refinance Company (PMRC) signed the Project Agreement. Draugelis assured the World Bank’s continuous financial and technical assistance to the government to help promote inclusive and sustainable economic growth in Pakistan. While witnessing the signing ceremony, Minister for Economic Affairs reiterated the parameters of the valued partnership with the World Bank. He stated that today’s event reflects continued confidence by the World Bank in the government’s policy and programs. He said that the primary beneficiaries of this project will be low- and middle-income households reliant on informal incomes. Pakistan Housing Finance Project is aimed at supporting the ongoing efforts of the government in increasing access to housing finance for households and supporting capital market development in Pakistan. This additional financing will fund the initial capitalization of the sub-trust of the Risk Sharing Facility created under the parent project of $140 million being executed by the Pakistan Mortgage Refinance Company. The project will enable the Primary Mortgage Lenders (PMLs) to move from the very upper end of the households in the 5th quintile to lower quintile income groups. Therefore, the financial sector at large will also benefit greatly as the project will help deepen the primary mortgage market, in addition to supporting the development of the capital market.