PM directs banks to simplify application process for housing loans

ISLAMABAD: Prime Minister Imran Khan on Thursday instructed commercial banks to simplify the application process for house building loans in order to facilitate low and middle income groups.

The prime minister while chairing the weekly meeting of the National Coordination Committee on Housing, Construction and Development said that the government has addressed all the reservations of the banks.

The State Bank of Pakistan (SBP) has been empowered for timely disbursement of subsidy to the banks on house building loans announced by the government. Moreover, matters pertaining to foreclosure are also being pursued effectively, he added.

The meeting was attended by Information Minister Senator Shibli Faraz, special assistants to the prime minister Malik Amin Aslam, Asim Saleem Bajwa, Syed Zulfiqar Bukhari and Dr Shahbaz Gill, SBP Governor Dr Raza Baqir, Naya Pakistan Housing Authority Chairman Anwar Ali Haider and other senior officers.

The presidents of all major banks of the country and representatives from the Association of Builders and Developers (ABAD) also attended the weekly meeting.

The prime minister expressed satisfaction over the role being played by banks and said that the construction industry can play a vital part in strengthening the country’s economy. He said that the uplift of the construction industry will also benefit banks which will be able to attract additional business opportunities.

On the other hand, Pakistan Banks Association president said that effective policies of the government and facilitation process for the banks has encouraged the private sector. He added that all banks are ready to play their role in providing housing facilities to people belonging to low and middle income groups.

Presidents of Bank of Punjab and Bank Al Falah briefed the prime minister about the products launched by their respective organisations under the housing programme. The heads of other banks also assured the prime minister that they will soon launch their own house building products.

Earlier in 2018, the Pakistan Tehreek-e-Insaf (PTI) had stated in its election manifesto that it will build five million houses in five years if elected into government. Since assuming power the ruling party has launched the Naya Pakistan Housing Programme aimed at providing affordable housing to people. However, issues pertaining to the financing of house building still remains a challenge as the country lacks a strong mortgage market.