Lahore: The State Bank of Pakistan (SBP) Deputy Governor Saeed Ahmad said on January 19 that the country’s affordable housing sector was not given enough importance, which is why it remained underdeveloped and impeded economic growth.
While speaking at the Housing Finance Awareness Programme organised by the SBP in collaboration with SBP Banking Services Corporation and banks, Ahmad said the migration of people from rural areas into cities has significantly increased over the last few years, leading to a rise in the number of irregular katchi abadis and slums which can also be safe havens for criminals.
According to a news source, Ahmad reiterated the need for affordable housing multiple times and explained how the SBP has been playing a vital role in the development of housing finance in Pakistan, with the incorporation of Pakistan Mortgage Refinance Company as a major achievement. The top bank has also released a set of prudential regulations that can facilitate a greater quantity of housing loans, but these measures must be coupled with public awareness about the benefits of housing finance to be effective.
Notably though, the availability of housing finance at a low mark-up has significantly inflated Pakistan’s housing finance portfolio to PKR 58 billion, he stated.
