Karachi: According to a news source, the State Bank of Pakistan (SBP) has amended different guidelines to encourage the investments of and other financial institutions in the real estate investment trust (REITs).
The central bank needs to help the government achieve its goal of improving the housing and construction industries, so the State Bank of Pakistan has taken the requisite measures to enable financial institutions to invest in these fields.
Certain provisions of the current Prudential Rules for Corporate and Commercial Banking have been revised, according to the release. The participation of REITs, which are wealth management firms capable of collecting funds from the general public and other organizations by floating different types of funds, was given special attention.
Furthermore, the SBP has eased limits on borrowing against listed company securities, allowing investors to increase their capital and invest in other projects. Sponsors of businesses wishing to trade on the stock market would also gain a profit, resulting in economic documentation and openness.