Karachi: According to press reports, the Securities and Exchange Commission of Pakistan (SECP) awarded licenses to three new Housing Finance Companies (HFCs) for the fiscal year 2021 (FY21) to help revitalize the sector.
Pakistan Housing Finance Company Limited, Asaan Ghar Finance Limited, and Trellis Housing Finance Company Limited are among the new HFCs that have been granted licenses. These businesses are expected to begin operations this year, according to reports.
The revival of the HFC sector, according to an unnamed regulator, will meet the growing demand for affordable housing finance in the country. There hasn’t been a single HFC license awarded in the last decade.
To promote market knowledge and emphasize opportunities for new entrants, SECP cooperated with the World Bank Group and Pakistan Mortgage Refinance Company. SECP will also provide information to potential investors on the various funding options accessible to home finance enterprises. HFCs will also make it easier to create functional HFC business models.
HFCs should also be included in the Markup Subsidy Scheme for housing finance, according to SECP. Hassan Bakhshi, the previous Chairman of the Association of Builders and Developers, praised SECP’s efforts to expand the HFC sector.