Banks approved over Rs59 billion till the end of August under the government’s flagship markup subsidy scheme Mera PakistanMera Ghar.
The SBP issued details regarding the scheme from its Twitter handle, sharing that till August 31, the banks have approved loans worth Rs59 billion and already disbursed Rs11.5 billion.
Bank financing under government’s affordable housing scheme Mera Pakistan Mera Ghar is gaining momentum. Till 31Aug21 banks have approved loans worth Rs59bn and already disbursed Rs11.5bn. Disbursements increased by Rs3.8bn or 49% during Aug21. See PR: https://t.co/YC4GA6ZDjE
— SBP (@StateBank_Pak) September 8, 2021
“Disbursements increased by Rs3.8bn or 49% during Aug21,” the central bank said adding that pace of disbursement under Mera Pakistan Mera Ghar (MPMG) was initially slow because of a number of factors, including the availability of housing units, however, it has now picked up.
It said that on the instructions of SBP, banks are accepting MPMG applications from over 8,000 dedicated branches across the country.
Further, SBP has also allocated targets to each bank under MPMG. An e-tracking system within each bank and a dedicated joint call center for the facilitation of the applicants have also been established.
A report by Dawn stated that the central bank expects that with the ongoing efforts by it, government and banks, bank finance for the scheme will gain further momentum in the days to come.
However, the construction industry is highly skeptical about the success of the housing scheme on a large scale as per the government’s wishes, as the cost of construction has sharply increased due to inflation and devaluation of local currency.
