KARACHI: With a housing backlog of 9 million homes and an annual housing shortfall of 270,000 homes, the need in Pakistan is huge. Besides the shortage of available housing, inflation and the rising trend in prices make home ownership even further out of reach for the average Pakistani each year. Housing finance in Pakistan is notably underdeveloped, only 1,500 new mortgages are extended annually, and the large majority of these are offered to borrowers living on middle and higher incomes.

Promotion of low cost housing is a key pillar of the Bank of Punjab’s strategy and mission. As part of its mission to promote and provide low cost housing in Pakistan, the Bank of Punjab and Reall Limited, UK have signed a Memorandum of Understanding. The MoU was signed by Patrick Domingos-Tembawa, Director of Operations and Investment, Reall Limited and Asif Riaz, Group Head Retail & Priority Sectors Lending, the Bank of Punjab.

Under this MoU, the Bank of Punjab has joined hands with Reall to finance builders and developers of low cost housing projects for speeding up and scaling the supply of affordable homes in the country.

The Bank will also provide loans to the prospective low income buyers of these housing units at subsidized rates under the State Bank of Pakistan’s Mark-up Subsidy Scheme for Low Cost Housing as part of the Government’s agenda to promote the Housing & Construction Industry and provide affordable living to the masses.

Zafar Masud, President & CEO of BOP said on the occasion that this alliance will go a long way in promoting the efforts of SBP and NAPHDA/GoP in extending mortgage financing for low cost housing to the much needed borrowers in the informal sector.—PR

Copyright Business Recorder, 2021