SBP announces mark-up subsidy for govt’s housing finance scheme

KARACHI: The State Bank of Pakistan has announced a mark-up subsidy for the federal government's housing finance scheme to provide subsidised financing to low and middle-income individuals.

"In line with [the] government’s vision of making housing finance affordable, SBP has announced Government’s Mark-up Subsidy for Housing Finance scheme to provide subsidised financing to low and middle-income individuals," it said on Friday.

To this effect, the central bank has launched a complaint resolution mechanism to promote the affordable housing scheme. It said the mechanism comprises an information technology-based portal and a network of SBP and commercial bank staff to resolve issues being faced by applicants for low-cost and affordable housing finance.

1. Housing plays an important role in economic development by contributing to GDP growth, employment generation and social well-being. Further, more than 40 industries and 70% of unskilled labor are linked with housing and construction sector.

2. In order to provide formal financial services at affordable rates, Government of Pakistan is providing Markup Subsidy for Housing Finance.

3. Banks can also avail risk coverage against the housing finance under the scheme from Pakistan Mortgage Refinance Company (PMRC) at mutually agreeable terms and conditions.

4. The banks are advised to ensure successful implementation of this facility through dissemination of necessary instructions to branches/ regions and capacity building of field staff, development/alignment of financing products and marketing campaigns, etc.