Islamabad: The World Bank (WB) will provide USD 85 million to Pakistan for the low-cost housing finance project, news sources reported on June 16. The primary beneficiaries of the project will be low- and middle-income households in Pakistan reliant on informal incomes.
According to reports, an agreement was reached between the government of Pakistan, represented by the secretary of the Ministry of Economic Affairs, Mian Asad Hayaud Din, and the acting country director of the World Bank, Gailius J. Draugelis. Representatives of the Pakistan Mortgage Refinance Company (PMRC) were also present at the event. As per the agreement, the project’s primary beneficiaries will be low- and middle-income households in Pakistan who rely on informal income. The Pakistan Home Financing Project aims to help the government’s ongoing efforts to provide access to housing finance for families and to boost the capital market growth in Pakistan.
The additional financing from WB will cover the initial capitalization of the sub-trust of the Risk Sharing Facility formed under the parent project of USD 140 million being implemented by PMRC. The initiative will allow Primary Mortgage Lenders (PMLs) to migrate from the extreme top end of the 5th quintile income group to the lower quintile income groups.
It is important to note that Pakistan has launched a low-cost housing and mortgage finance scheme under the Mera Pakistan, Mera Ghar initiative. The scheme is aimed at solving the housing crisis in the country.
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.
