KarachiI: The Pakistan Mortgage Refinance Company (PMRC) will extend loans to low- and middle-income segments to help making housing affordable, according to a news report. A shareholders’ agreement was signed on 14th April 2018 for the purpose. The government holds a 49% share, while the remaining majority is held by private sector banks including Habib Bank Limited, United Bank Limited, National Bank of Pakistan, Askari Commercial Bank Limited, Allied Bank Limited, Bank Alfalah, Bank Al- Habib, and House Building Finance Company
Speaking on the occasion, PMRC Managing Director and CEO NK Rupan said Pakistan has one of the lowest mortgage-to-GDP ratios in the region: 0.5%, while in India, it is 10%, and in Malaysia, 30%. He also said that housing mortgage rates should be fixed as they lower the default rate significantly. He also stressed the need to regular property developers in Pakistan.
The State Bank of Pakistan Deputy Governor Jameel Ahmed said that Pakistan has a shortage of 10 million housing units and these give rise to irregular settlements, which are breeding grounds for crimes.
Namous Zaheer, a representative of the World Bank, said that the World Bank has approved a USD 140 million credit line for PMRC to improve housing finance situation in Pakistan. Another objective for the World Bank’s line of credit is to increase ownership for women as only 2% of people own houses in Pakistan currently.
