IFC to invest Rs500mln in PMRC

KARACHI: International Finance Corporation (IFC), a member of the World Bank Group, is making an equity investment of up to Rs500 million in Pakistan Mortgage Refinance Company Limited (PMRC), to catalyse affordable mortgage financing to help address a critical gap in affordable housing, a statement said on Thursday.

With almost half of Pakistan’s urban families living in substandard housing, and the number of people living in towns and cities expected to double between 2030 and 2040, Pakistan is facing a high demand for affordable housing.

The current housing deficit in Pakistan stands at 10 million units and is expected to grow by 700,000 units per year. Despite the growing demand for housing, Pakistan’s level of mortgage lending – 0.3 percent – which is significantly far lower than South Asia’s average of 3.4 percent.

“IFC’s support to PMRC will help increase the overall availability of mortgage financing for homeowners. At present, the sector’s growth is hindered by an acute absence of long-term, fixed rate funding,” the statement said.