'Housing finances remain under-developed in Pakistan'
Encourages banks to view such financing as opportunity to broaden balance sheet
A REUTERS FILE IMAGE
KARACHI:
Housing finance has not only remained under-developed in Pakistan as compared with other emerging economies but has also seen little progress over time, said State Bank of Pakistan (SBP) Governor Dr Reza Baqir.
He was speaking at a meeting of banks on Wednesday for deliberation on measures proposed by the Naya Pakistan Housing and Development Authority (NAPHDA) and identify the way forward to ensure sustainable market-led financing of housing projects and mortgages. The meeting was chaired by the central bank governor and attended by NAPHDA Chairman Lt General Anwar Ali Haider and members of a think tank formed by the government.
The governor emphasised that construction and housing sectors had strong linkages with the rest of the economic sectors and offered a commercially viable and long-term business proposition for banks.
He stressed that supporting economic activity in these sectors would support economic growth, particularly employment, in current times of economic stress. He encouraged banks to view housing and construction finance as an opportunity to broaden their balance sheet and cater to the huge financing needs of the sector. Baqir reiterated the central bank’s commitment to play a facilitative and supportive role while also supporting a healthy credit culture in the country.
Speaking on the occasion, the NAPHDA chairman gave a presentation to the banks on key features of the Naya Pakistan Housing Programme.
He shared details of the underlying development model for a successful implementation of the initiative.
Shaukat Tarin, who is a member of the government’s think tank, presented a financial model and elaborated on the incentives being offered by the government. He emphasised that these would make financing for developers and mortgages commercially attractive for banks. Presidents of banks in their deliberations appreciated the Naya Pakistan Housing Programme and expressed their willingness to participate in the initiative of national importance.
Published in The Express Tribune, June 18th, 2020.
Housing finance has not only remained under-developed in Pakistan as compared with other emerging economies but has also seen little progress over time, said State Bank of Pakistan (SBP) Governor Dr Reza Baqir.
He was speaking at a meeting of banks on Wednesday for deliberation on measures proposed by the Naya Pakistan Housing and Development Authority (NAPHDA) and identify the way forward to ensure sustainable market-led financing of housing projects and mortgages. The meeting was chaired by the central bank governor and attended by NAPHDA Chairman Lt General Anwar Ali Haider and members of a think tank formed by the government.
The governor emphasised that construction and housing sectors had strong linkages with the rest of the economic sectors and offered a commercially viable and long-term business proposition for banks.
He stressed that supporting economic activity in these sectors would support economic growth, particularly employment, in current times of economic stress. He encouraged banks to view housing and construction finance as an opportunity to broaden their balance sheet and cater to the huge financing needs of the sector. Baqir reiterated the central bank’s commitment to play a facilitative and supportive role while also supporting a healthy credit culture in the country.
Speaking on the occasion, the NAPHDA chairman gave a presentation to the banks on key features of the Naya Pakistan Housing Programme.
He shared details of the underlying development model for a successful implementation of the initiative.
Shaukat Tarin, who is a member of the government’s think tank, presented a financial model and elaborated on the incentives being offered by the government. He emphasised that these would make financing for developers and mortgages commercially attractive for banks. Presidents of banks in their deliberations appreciated the Naya Pakistan Housing Programme and expressed their willingness to participate in the initiative of national importance.
Published in The Express Tribune, June 18th, 2020.