According to the State Bank of Pakistan (SBP), there has been a remarkable increase of 75% in housing and construction finance compared to last year. The sector is now worth Rs 259 billion as compared to Rs 111 billion last year. Governor SBP Reza Baqir announced in a meeting of the National Coordination Committee on Housing, Construction and Development (NCCHCD) that 97% of the overall target, related to housing and construction finance for June 2020, was met by the SBP.
According to the Prime minister, this level of progress is unprecedented; however, there is a need for emphasis to increase banks portfolios concerning the disbursement of low-income housing loans in the near future. The recent developments are aligned with the government’s vision to promote affordable housing and homeownership in Pakistan. Previously, the SBP directed commercial banks to increase their housing and construction finance portfolio to at least 5% of their private sector loans by the end of 2021.
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