Islamabad, Pakistan (CU)_ The government reached a deal with the World Bank for $85 million housing finance. The initiative will assist low-income people with access to cost-effective mortgages and promote home ownership, while also promoting the growth of the capital market.
According to a statement from the ministry, Sardar Ayaz Sadiq, the Federal Minister for Economic Affairs, was present during the signing of the agreement with the World Bank which was held at the Ministry of Economic Affairs in Islamabad. Highlighting that this project would benefit the majority of low- and middle-income people in Pakistan who depend on informal revenues, Sadiq said, “Today’s event reflects continued confidence by the World Bank on the government’s policy and programs”.
The funding agreement was signed by Mian Asad Hayaud Din, Secretary of Pakistan’s Ministry of Economic Affairs, and Gailius J. Draugelis, Acting Country Director of the World Bank. The project agreement was signed by the representatives of Pakistan Mortgage Refinance Company. According to Gailius, the transaction was one of the attempts of the World Bank’s constant financial and technical assistance to Pakistan, which aims to foster inclusive and sustainable economic development.
In the meantime, the ministry stated that the funding will cover the first capitalization of the sub-trust of the Risk Sharing Facility formed as part of the $140 million parent project being undertaken by Pakistan Mortgage Refinance Company. It also stated that the initiative will allow primary mortgage lenders to move from the very upper end of the 5th quintile households to the lower quintile income groups, and that the financial sector as a whole will have major benefit as the project will help strengthen the primary mortgage market, thereby supporting the growth of the capital market.
