KARACHI: Pakistan Housing Finance Company Limited (PHFC), one of the first Islamic housing finance company has started its operations. PHFC has disbursed their first housing finance facilities to the customers. This marks the successful beginning of a private sector initiative to promote affordable Islamic housing finance in Pakistan. These housing finance facilities comply with the requirements of the government markup subsidy scheme.

In line with the government’s efforts to promote home ownership under the ‘Naya Pakistan Housing Program,’ the Securities and Exchange Commission of Pakistan (SECP) has encouraged the formation of housing finance companies under NBFC regulations.

As a result of these efforts, four new housing finance companies have obtained a HFC license from the SECP to promote affordable housing finance in Pakistan. These HFCs will pave ways for new entrants in the housing finance market. It is projected that these HFCs can collectively contribute over Rs 50 -75 billion in housing finance over next five years. PHFC has been set up as Pakistan’s first licensed non-banking finance company to provide affordable Islamic housing finance.

Copyright Business Recorder, 2022