Housing finance sees a historic 36 percent increase
According to news reports, the State Bank of Pakistan (SBP) reported on Tuesday that housing and construction finance observed a ‘historic’ 36 percent growth during the fiscal year 2020-21.
The SBP and the Pakistan Banks’ Association (PBA) issued a joint statement outlining their measures to boost housing finance and raise awareness of how to make the most use of the offers launched by the government, SBP, and banks. According to the statement, housing and construction finance have made substantial strides, and momentum is building in the sector.
The bank’s housing and construction finance portfolio has grown from Rs148 billion at the end of June 2020 to Rs202 billion in March 2021. This reflects Rs54 billion, or 36 percent, increase in the three-quarters of FY21 compared to a static role in the same timeframe last year,” it added.
Such increase in housing and construction finance in a short time has never been seen before in the history of the country, according to the statement. By the end of December 2021, banks would expand their housing and construction finance portfolios to at least 5% of their private sector advances.
Housing finance is expected to expand in the future as mortgage finance gains momentum under Mera Pakistan Mera Ghar Scheme, according to SBP. After April 2020, the public at large has registered for housing finance totaling more than Rs.52 billion, with numerous banks approving applications totaling Rs.15 billion.