Karachi: The State Bank of Pakistan (SBP) loaning to the housing and construction sector has reached an exceptional growth of 85% during 2021 on Thursday (January 6).
According to the sources, SBP has reported that the bank’s outstanding credit for the construction sector is raised from PKR 163 billion to PKR 355 billion in the current year. He also told the loan expense under the prime minister’s housing scheme known as “Mera Pakistan, Mera Ghar” also increased to PKR 38 billion. The housing scheme was launched in October 2020 to boost the housing sector. Under this scheme, the aim is to provide loans at cheap rates to low-income families for the construction of houses.
The banks are ordered by SBP to raise their housing and construction finance portfolios to 5% by December 2021. The central bank has also introduced incentives and penalties for compliance. SBP also created an enabling regulatory environment for banks to increase housing finance including Debt Burden Ratio (DBR) in case of informal income, allowing acceptance of third-party guarantees during the construction period. They also the introduction of the standard facility offer letters by the banks. Bank Al Habib, Meezan Bank, and Habib Bank were the main contributors to the significant growth of housing and construction financing.
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