Pakistan, World Bank sign $85mn housing finance project

ISLAMABAD: The government on Wednesday signed a housing finance project worth $85 million with the World Bank. The project aims to provide low-income households with affordable mortgages to increase home ownership.

The Federal Minister for Economic Affairs Sardar Ayaz Sadiq oversaw the signing ceremony of the housing finance agreement at the Ministry of Economic Affairs Islamabad.

Ministry of Economic Affairs Secretary Mian Asad Hayaud Din and World Bank Acting Country Director Gailius J. Draugelis inked the financial agreement, while a representative from the Pakistan Mortgage Refinance Company (PMRC) signed the project agreement.

The Federal Minister stated that this event reflects the World Bank’s continued confidence in the government’s economic policies. He also added that the main beneficiaries of the program will be lower- and middle-income groups that depend on daily wages and inconsistent incomes.

Draugelis assured the World Bank’s continuous assistance to the government to enable sustainable and inclusive growth in the country.

The project will allow Primary Mortgage Lenders (PML) to shift from the upper end of the 5^th quintile to lower quintile groups.

Overall, the financial market will also greatly benefit from the agreement as it will help widen the mortgage market, along with supporting the development of the capital market.