Karachi: The Housing Building Finance Company (HBFC) is set to receive PKR 3.6 billion for the development of low-cost housing projects from the Pakistan Mortgage Refinance Company (PMRC), according to a news source. This funds allocation to the HBFC is geared to provide long-term mortgages to end consumers.
The PMRC receives cheaper loans from the World Bank, and has signed an agreement with HBFC. This signing ceremony took place at the offices of the central bank. Governor State Bank Tariq Bajwa presided over the event, where high officials from both financial bodies were also present.
The agreement states that PMRC will provide long-term fixed rate funding of up to PKR 3.6 billion to the HBFC. HBFC will use this amount to deliver home mortgage loans to end consumers.
Bajwa emphasised that the role of the housing finance sector in the national economy (with a GDP-to-mortgage ratio of 0.2% to 0.3%) is very limited as compared to its significance in other regional economies. This agreement aims to promote the industry, and meet the increasing demand for affordable housing in Pakistan.
