Karachi: The State Bank of Pakistan (SBP) has amended various regulations to encourage investment of banks and other financial institutions in the real estate investment trust (REITs), according to a news source.
The central bank aims to facilitate the government objective for the development of housing and construction sector and for that reason, the State Bank of Pakistan has been taking the appropriate steps to encourage the financial institutions to invest in the relevant sectors.
According to the statement, certain provisions of the existing Prudential Regulations for Corporate & Commercial Banking have been amended. Particular focus was on the participation of REITs, which are asset management companies capable of raising finances from the general public and other institutions by floating various kinds of funds. The funds raised are then invested into real estate properties which contribute to economic growth.
Furthermore, SBP has relaxed restrictions on seeking financing against shares of listed companies, which will aid investors in improving liquidity for further investments in other ventures. A benefit will also be extended to the sponsors of companies for listing on the stock exchange, leading to documentation of economy and transparency.
