Commercial banks in Pakistan have approved Rs. 212.28 billion and disbursed Rs. 85.3 billion to customers across the country so far under Mera Pakistan Mera Ghar (MPMG) — a markup subsidized scheme of the federal government.
A total amount of Rs. 26.03 billion was requested during May 2022, out of which Rs. 15.11 billion was approved and Rs. 9.8 billion was disbursed under MPMG financing, according to the State Bank of Pakistan (SBP).
When compared with data recorded in April, the total amount requested decreased by Rs. 21.81 billion in May. The approved amount slid by Rs. 7.79 billion while the disbursements decreased by Rs. 930 million.
Overall, the commercial banks received applications for housing finance amounting to Rs. 473.69 billion by the end of May 2022.
Similar trends can also be observed in the overall financing of the housing and construction sector by banks. Banks almost doubled their housing and construction finance portfolio to Rs. 404 billion on 31 March 2022 from Rs. 204 billion a year earlier. In increasing their housing and construction finance, banks achieved almost 100 percent of the first quarter target of Rs. 405 billion for 2022.
The SBP has taken several measures with the support of the Government of Pakistan since July 2020 to improve the provision of financing for the housing and construction sector to increase adequate housing in the country and boost construction sector activities.