Karachi: A State Bank of Pakistan (SBP) report revealed that the overall bank financing to the housing and construction sector has almost doubled to PKR 404 billion in the first quarter of the calendar year (CY) 2022, as compared to PKR 204 billion recorded last year, according to news sources.
“In increasing their housing and construction finance, banks have also achieved the first quarter target of PKR 405 billion for 2022,” said the SBP.
According to the data, banks received applications for housing loans totalling PKR 409 billion till April 11, which represents over a sevenfold increase from the sum of PKR 57 billion reported the previous year. In response to these approvals, the banks accepted applications totalling PKR 180 billion and disbursed PKR 66 billion.
This is a more than 11-fold increase in application approvals over a year ago. In April 2021, banks only authorized PKR 16 billion in loans. It is worth noting that, according to 2017’s housing and population census statistics, Pakistan needs 350,000 housing units each year, but only 150,000 are available. As a result, the country is experiencing a housing crisis. The government has launched a number of measures to encourage banks to provide mortgages as part of the Naya Pakistan Housing Project (NPHP) and Mera Pakistan Mera Ghar (MPMG) low-cost housing programmes.
Both programmes are intended to encourage low-income households to build and own homes. The government has set a modest markup for the houses, which is spread over a 20-year period.
Nauman Ahmad is an imaginative Pisces whose love for literature and nature is unparalleled. When he's not reading or hiking, he's sleeping and eating, which gives him plenty of energy for his next adventure.
