The State Bank of Pakistan has taken up various incentives to promote housing finance in line with the government’s aim of providing affordable housing in the fiscal year 2021. The SBP set mandatory targets for commercial banks to extend mortgage loans and financing for developers and builders. Under these targets, banks are obligated to increase their housing finance portfolio to at least 5% of their private sector advances by the end of December 2021. Moreover, the banks that can fulfil or exceed their quarterly financing target will be incentivized to maintain a lower Cash Reserve Requirement (CS).
To increase financing for house construction and promote affordable homeownership amongst the lower and middle-income groups, the SBP introduced the Mark-up Subsidy Scheme for Housing Finance. The Mark-up-subsidy scheme is for individuals who do not own a house and need assistance for its financing. Almost Rs 36 billion have been allocated under the mark-up subsidy to finance homeownership for over ten years.
Recently, the government launched the Roshan Apna Ghar Scheme, which marks the beginning of overseas investment into Pakistan’s real estate sector.
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