KARACHI: According to the State Bank of Pakistan (SBP), banks have authorized Rs180 billion in low-cost housing loans so far in calendar 2022, an increase of 11 times over the same period last year.
Banks received applications for Rs409 billion through April 11, compared to Rs57 billion in the same period a year earlier, a seven-fold rise. A total of Rs66 billion has been disbursed from accepted applications, compared to Rs16 billion in the same time as CY2021.
In the first quarter of CY22, total bank funding to the housing and construction industry then doubled to Rs404 billion, up from Rs204 billion the previous year.
“Banks have made significant progress in approving and disbursing financing under the Mera Pakistan Mera Ghar Scheme (MPMG) in the face of a massive surge in borrowers seeking home finance,” the SBP stated.
“By expanding housing and construction loans, banks have also met their first-quarter objective of Rs405 billion for 2022,” the SBP stated.
On July 15, 2020, the SBP issued housing and construction finance goals to banks. By the end of 2021, banks have to expand their housing and construction financing portfolio to 5% of their domestic private sector advances.
As an outcome, bank lending to the housing and construction industry climbed to Rs367 billion by December 31, 2021, up from Rs148 billion by June 30, 2020.
“Banks have been recommended to raise their housing and construction portfolio to 7 percent of their domestic private sector advances by 2022,” according to the SBP.
