Karachi: Finance Minister Shaukat Tarin on Friday announced setting up ‘Pakistan Housing Bank’ – a regulatory body for the housing finance market while unveiling the economic plan for sustainable growth, according to news sources.
Arif Habib, a member of the Economic Advisory Council (EAC), while talking to the media, stated that after the establishment of a housing finance institution, the function of housing finance will not fall under the commercial banking arena.
Sharing details about the regulatory body, the EAC member stated that housing finance companies will be from the private sector. He went on to say that the main purpose is to create an environment where the private sector can easily pursue housing finance as the sole business. Currently, the housing finance market is being regulated by the State Bank of Pakistan (SBP).
It is important to note that no housing finance company existed in the country until earlier this year. In June, the Securities and Exchange Commission of Pakistan issued licenses to three companies – Asaan Ghar Finance Ltd, Trellis Housing Finance Company, and Pakistan Housing Finance Company.
Moreover, Arif Habib also revealed that the government will encourage banks to provide funds to the housing finance companies so they can improve their operations. Further, he predicted that microfinance banks, investment banks, and fund management companies will set up housing finance companies to take advantage of increasing opportunities.
To further support to the housing sector, the government has also earmarked PKR 36 billion for housing loan mark-up subsidy in a bid to promote affordable housing availability for low-income segments over a period of 10-years.
Iqra holds BS in International Relations and is passionate about writing engaging content on trending real estate topics. When not working, she is either spending time with family, shopping, or discussing shows & movies.
