The Pakistan Mortgage Refinance Company (PMRC) has signed agreements and memoranda of understanding (MoUs) worth Rs. 4.8 billion for low-income house financing.
The agreements were signed in a ceremony with House Building Finance Company, First Woman Bank, Askari Commercial Bank, Bank Islami, and Khushali Microfinance Bank. Prime Minister Imran Khan and officials of the World Bank Group were also present at the event.
Addressing the conference, the prime minister admitted that provision of five million houses in five years is an ambitious target given the lack of proper infrastructure and inefficient foreclosure laws. Because of which banks are hesitant to give mortgage loans.
“However, the government is fully determined to meeting the existing demand of 10 million houses in the country for which it is working closely with State Bank of Pakistan and World Bank so as to resolve implementation challenges,” said the premier.
World Bank Country Director Illango Patchamuthu said that it takes around 25 years for an individual in Pakistan to own a house while the said period is five years in the international market.
He told the audience that the World Bank has provided $140 million for financing low-income housing through PMRC. Director and CEO of PMRC, Mudassir H Khan, told that PMRC is a joint initiative of government, State Bank of Pakistan (SBP), and the World Bank Group.
The main object of this company is to increase affordable housing finance, especially for the low and middle-income groups, provide mortgage finance through banks, housing finance companies, Development Finance Institutions (DFIs), and the development of capital markets with fixed-rate, long term bonds and sukuks.