Islamabad: Dr. Reza Baqir, Governor of the State Bank of Pakistan (SBP), said on Thursday that housing and construction funding in the current fiscal year 2020-2021 (FY21) increased by 75% to PKR 259 billion, compared to the same period last year, according to news reports.
The rise totals PKR 111 billion, making it the largest increase in home finance in Pakistani history in a single year.
The data was presented by the governor of the central bank at a briefing to Prime Minister Imran Khan’s National Coordination Committee on Housing, Construction, and Development (NCCHCD).
Banks offered loans for the housing and construction industries, resulting in a 97 percent achievement of the overall target set for June 30, 2021, according to figures.
The government launched the Mera Pakistan Mera Ghar (MPMG) initiative to provide low-cost housing to low-income people, and the central bank was given the duty of developing the strategy. The SBP has advised banks to increase their holdings to 5% of private-sector lending by December 2021. The SBP also set unique quarterly goals for banks, which helped them fulfill their aims. As of June 30, banks had disbursed PKR 39 billion in housing finance.
The SBP governor noted that a one-page application form for salaried, enterprises, and individuals with informal income will be accessible by the end of July in line with the process of estimating income for the informal sector.