FGEHA, Askari Bank sign MoU

Islamabad : Federal Government Employees Housing Authority (FGEHA) and Askari Bank signed Memorandum of Understanding (MoU) in a ceremony held at Committee room of Ministry of Housing & Works, says a press release.

The ceremony was presided over by the Federal Secretary Ministry of Housing & Works Dr. Imran Zaib, it was attended by the Director General FGE Housing Authority Waseem Hayat Bajwa, Country head Consumer banking of Askari bank Taha Afzal, and Director Finance FGE Housing Authority Tahir Naeem Akhtar.

The MoU has been signed as per the vision of the Prime Minister of Pakistan, for provision of affordable housing units to the Federal Government employees in particular and other specified groups in general.

Finance Wing solicited proposals from all the commercial banks through widely publicized advertisement for sharing their terms and conditions of mortgage financing. The following banks submitted their terms and conditions:

i) Bank of Punjab, ii) Habib Bank Ltd. Islamic, iii) Askari Bank Ltd., iv) Meezan Bank, v) United Bank Ltd., vi) National Bank of Pakistan, Vii) Bank Al Falah, viii) Bank of Khaybar, ix) Bank Al Habib, x) JS Bank Ltd. and HBFC

Upon receipt, the terms and conditions were analyzed by the Committee, and after the acceptance, a draft MoU was shared with all short listed commercial banks for legal vetting. Consequently, upon guidance of the Secretary Ministry of Housing & Works and relentless efforts of the Director General, the Authority has been able to secure lowest possible mark-up rates of financing from different commercial banks to cater for financial needs of the Federal Government employees. Today, finally, FGEHA has signed the MoU with Askari Commercial bank; and within a week or so, MoUs would also be signed with United Bank Ltd. and Bank Al Habib Ltd. It is further added that as per Government’s Markup Rate Subsidy for Housing Finance issued by the State Bank of Pakistan vide IH&SMEFD Circular No. 11, dated 12th October 2020, special markup rates would be applicable for all housing/apartment units falling under the financial limits defined by the State Bank of Pakistan.

This Mortgage financing facility would not only facilitate the Federal Government employees for payment of installments against allotted plots/apartments but would also help FGEHA manage its cash-flows better.