IFC invests $3.2m for low-cost housing in K-P, Balochistan

KARACHI: The International Finance Corporation (IFC) has invested $3.2 million in Pakistan Mortgage Refinance Company, aimed at providing financing for low-cost housing in Khyber Pakhtunkhwa (K-P) and Balochistan.

The financial institution is a member of the World Bank Group.

Prior to the outbreak of COVID-19, the World Bank had planned to grant $500 million to address the existing issues of shortage of housing, in the year 2020.

While briefing on the matter, PMRC Managing Director and Chief Executive Officer Mudassir H. informed that the delayed financing aid programme may be launched by June 2021.

The PMRC gives financing for low-cost housing at around a 6% mark-up to banks for a maximum period of 25 years.

With the banks adding an additional charge of about 2-2.5%, increases the total mark-up cost of low-cost financing to around 8-8.5%.

As a result, individuals may acquire financing of up to Rs5 million each from the banks for the low-cost houses.

Prior to this, the World Bank and PMRC had successfully established a credit line of $140 million for PMRC for housing projects in the first project together.

In the past one and a half years, the company provided a total of Rs11.5 billion financing to banks under the programme.

Operating on a public-private partnership mode, the PMRC speeds up mortgage financing to assist people and low-income groups with building their homes.

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