ISLAMABAD: Loan disbursement for low-cost housing recorded the highest increase in February FY22 of Rs9.3 billion.
The surge highlights no uncertainty amongst investors despite the prevalent political crisis in Islamabad.
State Bank of Pakistan’s (SBP) data, released on Thursday, said the total disbursements under the Mera Pakistan Mera Ghar (MPMG) crossed the Rs53.074bn mark at the end of February 2022.
It is pertinent to state that the government launched the MPMG scheme in October 2020, wherein the PTI-led federal government announced numerous incentives along with subsidised mark-up rates. Sources privy to the matter say that the scheme aims to boost investments in the housing sector so that economic activities could be spiked in the country.
Initially, banks were reluctant to disburse loans for the scheme, and the response was poor. However, the government made it necessary for banks to spend five per cent of their private sector credit.
According to the SBP’s data, the financing for MPMG increased during Dec-Feb FY22.
The disbursements till the end of Nov 2021 was Rs28.744bn, which reached Rs53.074bn by Feb 2022.
During the months under consideration, the disbursement under the scheme surged by 46pc to reach Rs24.33bn. SBP’s data showed that the disbursement during the initial eight months of the current fiscal year was Rs47.852bn.
Despite the surge in disbursements, the scheme has not reached up to the expectations of the SBP and the government.
The central bank is trying to make the scheme successful and has incorporated a large number of banks to take part in the scheme.
Available in both Islamic and conventional modes, the scheme enables banks to finance the construction and purchase of houses at low financing rates for low to middle-income fragments of the population.
The central bank is the executing partner with the national government and Naya Pakistan Housing and Development Authority.
