The single digit mark-up rate on commercial loans few years back has jacked up the prices of real estates in the country, a senior banker told on condition of anonymity.
He said that the single digit mark-up rate on commercial loans was mostly not utilised for the establishment of business entrepreneurs and installation of the industrial units rather it went into the hands of land mafia. "The prevailing sky rocketing prices of the real estates throughout the country is the result of the low mark-up rate," he added.
He said that the construction of a house for middle class person has become a dream in the prevailing situation in the country. He said that the establishment of KIBR (Karachi InterBank Interest Rate) has helped control the upward trend in the prices of the real estates to some extent. However, he called for further surveillance over the prices of the real estates in the country.
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