PBA supports housing finance

KARACHI: Pakistan Banks’ Association (PBA) believes that housing and construction finance sector is a critical contributor to the overall economy because of its multiple linkages to other avenues of economic development. A statement said on Monday.

However, housing and construction finance is presently very low in Pakistan, contributing less than one percent of the country’s GDP; it is also one of the lowest in the region and comparable countries, it added.

PBA welcomes the positive steps taken by the government and the State Bank of Pakistan (SBP) that are key enablers for growth of the housing and construction finance sector. These steps include low interest rates, more effective foreclosure laws and construction being accorded an ‘Industry’ status, while there are still a few unresolved issues, which are being actively worked upon, PBA believes it is a good time for its member banks to see this as a growth area for future lending on a secured basis, with reasonable spreads, the statement said.

Given its widespread benefits for the economic development of Pakistan, PBA supports the growth of housing and construction finance and encourages its member banks to view it as a sound business proposition, it added.