Karachi: The State Bank of Pakistan (SBP) has temporarily suspended disbursement of funds for the Mera Pakistan Mera Ghar (MPMG) low-cost housing scheme and Youth Entrepreneurship Schemes (YES), news sources reported on July 3. The central bank has cited changing monetary policy and a review of the existing rules as the reasons for the temporary halt.
According to reports, the SBP has directed banks to halt processing and payment of funds for the MPMG for two months, from July 1 to August 31, while financing for the Prime Minister’s Kamyab Jawan Youth Entrepreneurship Schemes (PMKJ-YES) has been halted for two weeks, till July 15. However, the funding will continue in all those housing finance cases where a partial finding has been released before or at the conclusion of the financial year on June 30.
Explaining the reason for the suspension, the central bank said that it has based its decision on a higher policy rate of 13.75% and the country’s macroeconomic condition. It went on to say that the government has withdrawn all subsidies to reach an agreement with the International Monetary Fund (IMF), increase revenue, and reduce the fiscal deficit.
Moreover, the SBP stated that the YES scheme would be suspended for 15 days till July 15 to examine and adjust the features of the scheme in light of recent changes in macroeconomic conditions.
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.
