Finance Minister Ishaq Dar Monday chaired a meeting considering important matters for setting up of a mortgage refinance company. The company by the proposed name of "Pakistan Mortgage Refinance Company Limited" is envisaged to be formed with the objective to promote, develop and improve the housing finance market to increase accessibility and availability of affordable housing finance with greater participation by banks and financial institutions.
The refinancing facilities will be for long, medium and short term period to banks and financial institutions against their existing conventional and Islamic housing finance portfolios. The finance minister said the new company must provide all forms of technical advice, consultancy support and assistance to banks and financial institutions in conventional and Islamic housing finance and products along with developing and promoting international best practices for housing finance in Pakistan.
The company will have an authorised capital of Rs 10 billion with Rs 6 billion as paid-up capital. The government will release its share of 2 percent of equity commitments immediately. Deputy Governor State Bank of Pakistan, Saeed Ahmad will be its first chairman till the new board is formed and selects its chairman under due process. The company''s head office will be located in Karachi. The equity will be contributed by the government of Pakistan, NBP, Askari Bank, HBL, UBL, Bank Alfalah, HBFCL, Bank Al-Habib, ABL, and contributions are expected from the IFC and the ADB.-PR