World Bank lends $85mn to support low cost housing

ISLAMABAD: Pakistan and the World Bank on Wednesday signed a deal worth $85 million for Pakistan Housing Finance Project.

Mian Asad Hayaud Din, secretary, ministry of Economic Affairs and Gailius J. Draugelis, acting country director, World Bank signed the financing agreement while representative of Pakistan Mortgage Refinance Company (PMRC) signed the project agreement.

World Bank Gailius, ensured the Bank’s continuous financial and technical assistance to Pakistan to help promote inclusive and sustainable economic growth in the country. Minister for Economic Affairs, Sardar Ayaz Sadiq, while witnessing the signing ceremony, reiterated the parameters of valued partnership with the World Bank. The minister said agreement reflects continued confidence by the World Bank on the Pakistan’s policy and programs.

The primary beneficiaries of the project will be low- and middle-income households in Pakistan reliant on informal incomes. Pakistan Housing Finance Project is aimed at supporting the ongoing efforts of the government in increasing access to housing finance for households and support capital market development in Pakistan. The additional financing will fund the initial capitalization of sub-trust of the Risk Sharing Facility created under the parent project of $140 million being executed by Pakistan Mortgage Refinance Company. The project will enable the Primary Mortgage Lenders (PMLs) to move from the very upper end of the households in the 5th quintile to lower quintile income groups.