Banks approve housing loans worth Rs180bn under MPMG scheme

KARACHI: So far in 2022, banks have given approval of Rs180bn in housing loans under the Mera Pakistan Mera Ghar (MPMG) scheme.
According to a statement given by the State Bank of Pakistan (SBP) on Thursday, this amount is 11 times more than what it was during the same time period last year.

According to the statistics given by SBP, till April 11, this year, banks got applications amounting to Rs409bn in comparison to Rs57bn in the same period during last year, recording an increase of more than seven times.

Against the approved applications, banks have paid out a sum of Rs66bn in comparison to the Rs16bn in the same period last year. In comparison to the Rs204bn, last year banks doubled their overall financing to the housing and construction sector to Rs404bn in the calendar year 2022.

SBP stated that it has taken several measures to boost the progress in approving and paying out the financing under the MPMG scheme.
During the first quarter of 2022 banks have achieved their target of Rs405bn in raising their housing and construction finance. In October 2020, these efforts were enhanced by the government with the launch of the MPMG scheme.

This scheme is available in both Islamic and conventional modes and provides financing for the purchase and construction of houses for low-income segments of society.

It was also advised to the banks by the State Bank of Pakistan to develop and install income estimation models for borrowers with the informal income sources, SBP said.