State Bank of Pakistan (SBP) Governor Dr. Reza Baqir said that Housing financing in Pakistan has not only remained underdeveloped compared to other emerging economies but has also seen little improvement over time.
He spoke at a bank meeting on Wednesday to discuss measures proposed by the Naya Pakistan Housing and Development Authority (NAPHDA) and identify the way forward for sustainable market-driven financing of housing projects and mortgages.
The meeting was chaired by the governor of the central bank and attended by NAPHDA president Lt General Anwar Ali Haider and representatives of a government-formed think tank.
The governor emphasized that the construction and housing sectors had close relations with the other economic sectors and gave banks a commercially viable and long-term business proposal.
Speaking at the occasion, the chairman of NAPHDA gave a presentation on key features of the Naya Pakistan Housing Program to the banks.
He shared details of the underlying development model to ensure the initiative was successfully implemented.
Shaukat Tarin, who is a member of the think tank of the government, presented a financial model and expanded on the incentives the government is providing. He stressed that these would make finance commercially attractive to banks for developers and mortgages.
Bank presidents praised the Naya Pakistan Housing Program in their discussions and shared their commitment to engage in the nationally important initiative.