In a ceremony held at the Pakistan Housing Conference, PMRC, in the presence of Prime Minister of Pakistan Mr. Imran Khan and officials of the World Bank Group, signed Agreements and MOUs of PKR 4,800 million. These were signed with House Building Finance Company, Askari Commercial Bank, First Woman Bank, Bank Islami and Khushali Microfinance Bank, for low income housing finance.
At the conference, the Prime Minister told the audience that indeed providing 5 million houses in 5 years is an ambitious target keeping in view of lack of necessary infrastructure and inefficient foreclosure laws due to which banks are reluctant to provide mortgage loans.
However, government is fully determined to meet the existing demand of 10 million houses in the country for which it is working closely with State Bank of Pakistan and World Bank to resolve implementation challenges.
World Bank Country Director Illango Patchamuthu said that in Pakistan it took around 25 years for an individual to own a house compared with five years in the international market. He further said that World Bank has made available USD 140 mn facilities for housing finance through PMRC. He applauded the performance of PMRC and as the demand of PMRC funding is increasing, he indicated World Bank’s further support to PMRC.
“PMRC is a joint initiative of the State Bank of Pakistan, Government of Pakistan and the World Bank Group established with the objectives of increasing affordable housing finance Pakistan Mortgage Refinance Company signs PKR 4,800 mn Agreements and MOU specially for the low and middle income groups; providing mortgage finance through banks, DFIs and housing finance companies and development of capital markets with fixed rate long term Bonds and Sukuks” said Mudassir H. Khan, Managing Director/ CEO of PMRC.
He further added that “PMRC is fully committed to support the initiative of providing 5 million low cost housing providing liquidity to banks/ DFIs/ Fis through refinancing and has already disbursed PKR 5,200 million to three banks and a housing finance company for extending mortgage loans”.
PMRC started its commercial operations in November 2018 and within a very short period of time has created a unique position in the financial sector. It is 51% owned by private commercial banks whereas 49% by Government/Public sector.
Pakistan Mortgage Refinance Company signs PKR 4,800 mn Agreements and MOUs PMRC will soon launch its fixed rate bonds to generate further liquidity from capital markets. This will not only increase lending to financial institutions for further extending mortgage loans but also provide an alternate asset class for investors to reap attractive risk adjusted returns besides providing diversification benefits to their investment portfolios