Banks Approves Around Rs. 60 Billion for Low-cost Mera Pakistan Mera Ghar Housing Scheme

Mera Pakistan Mera Ghar (MPMG), the government’s markup subsidy housing scheme, has picked up the pace as the country’s commercial banks have approved the financing facility of nearly Rs. 60 billion for the customers residing in different cities by the end of August 2021.

As per data released by the State Bank of Pakistan (SBP), the banks have received applications of Rs. 154 billion under the government’s flagship scheme since its launch. By August 31, 2021, the disbursement under the scheme has reached Rs 11.5 billion, showing an increase of around Rs. 3.8 billion or 49% in August 2021.

On average, banks have, to date, approved 38 percent of the amount applied for, while 19 percent of the approved amount has been disbursed. These approval and disbursement ratios have similarly risen over the past few months as banks have put in place the needed upfront investment in procedures and technology to process applications for low-cost housing. On average, banks have, to date, approved 38 percent of the amount applied for, while 19 percent of the approved amount has been disbursed. These approval and disbursement ratios have similarly risen over the past few months as banks have put in place the needed upfront investment in procedures and technology to process applications for low-cost housing. Since the announcement of the low-cost housing scheme last year, SBP has taken various enabling steps such as introducing standardized and simple application form; adopting informal income assessment model; providing relaxations in prudential regulations; establishing helpdesks at all SBP field offices; and, designing a complaint portal supported by a network of focal persons of all banks across all geographical areas. On the instructions of SBP, the banks are accepting MPMG applications through over 8,000 dedicated branches across the country. Furthermore, SBP has also allocated targets to each bank under MPMG. An e-tracking system and a dedicated joint call center for the facilitation of the applicants have also been established in every bank. Naya Pakistan Housing Development Authority (NAPHDA) and Pakistan Banks’ Association (PBA), a representative body of banks, are fully supporting MPMG.

It is expected that with the ongoing efforts by SBP, Government, and banks, the bank financing for MPMG will gain further momentum in the days to come.

Source: Pro Pakistani

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