State Bank Calls a Meeting of Bank Presidents on Naya Pakistan Housing Program - Android

State Bank of Pakistan (SBP) Governor Dr. Reza Baqir has called a meeting of banks for deliberations on the measures… Read More

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State Bank of Pakistan (SBP) Governor Dr. Reza Baqir has called a meeting of banks for deliberations on the measures proposed by Naya Pakistan Housing and Development Authority (NAPHDA) and to identify ways to ensure sustainable market-led financing of housing projects and mortgages.

The Governor said that housing finance has not only remained under-developed in the country as compared with other emerging economies but seen little progress over time.

The meeting was chaired by the Governor SBP and attended by Chairman NAPHDA, Lt. General Anwar Ali Haider, and members of the think tank formed by the government including Shaukat Tareen, Arif Habib and Aqeel Karim Dhedhi, and the banks were represented by their respective presidents, according to a press release.

Reza Baqir praised the work of Lt. General Anwar Ali Haider and NAPHDA for its significant potential contribution in meeting the shortage of housing and accelerating economic activity in the country.

“In this regard, therefore, this initiative is of great national interest,” said Baqir.

He emphasized that the construction and housing sectors had strong linkages with the rest of the economic sectors and offer a commercially viable and long term business proposition for banks.

Reza Baqir also stressed that supporting economic activity in these sectors would support economic growth, particularly employment in current times. He encouraged banks to view housing and construction finance as an opportunity to broaden their balance sheet and cater to the huge financing needs of the sector.

Baqir reiterated the central bank’s commitment to play a facilitative and supportive role while also supporting a healthy credit culture in the country.

The chairman NAPHDA made a presentation to the banks on the key features of the Naya Pakistan Housing Program. He shared the details of the underlying development model for the successful implementation of the initiative.

Shaukat Tareen, member of the government’s think tank, presented a financial model and elaborated on the incentives being offered by the government and emphasized that these will make the financing of developers and mortgages commercially attractive for banks.

The presidents of banks in their deliberations appreciated the Naya Pakistan Housing Program and expressed their readiness for participating in this initiative. They also made queries and suggestions in this regard.

It was decided that banks, NAPHDA, and SBP would work together to prepare a roadmap and execution plans with support from the relevant sub-committees of Pakistan Banks Association.

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