ISLAMABAD: Investment in low-income housing would bring “massive” economic benefits to Pakistan, according to a new study published by Karandaaz Pakistan and funded by the UK Government’s Department for International Development (DFID).
The new study, ‘Enhancing Builder Finance in Pakistan’, was launched at an event in Islamabad. With this study, Karandaaz Pakistan aims to show the wide benefits of building more affordable housing, but also help boost the businesses of Small and Medium Enterprises (SMEs) that work on the building sector.
The study estimates that the construction of 100,000 more houses each year will lead to economic growth as well as increased employment opportunities. According to the study, Pakistan’s economy will benefit massively if affordable housing were to be increased.
To achieve this, improvements should be made to the regulatory environment for builders and banks must be given sufficient incentives for mortgage and builder financing.
DFID Pakistan Head Joanna Reid said, “Only the richest of companies can afford to build homes for the richest of people. Pakistan needs financing mechanisms to ensure everyone can have a roof over their head.”
Karandaaz CEO Ali Sarfraz on the occasion said, “We hope that the study Karandaaz has conducted motivates members from the financial sector to take steps in making available financial products better suited to the needs and asset base of SME builders and developers and thereby catalyzing the availability of affordable housing for everyone in Pakistan.”
