Pakistan, World Bank sign $85 million housing finance project

Islamabad: The federal government Wednesday inked an agreement with the World Bank over a housing finance worth $85 million.

The project will help give those in low-income households access to affordable mortgages and increase home ownership, while also supporting capital market development.

Federal Minister for Economic Affairs Sardar Ayaz Sadiq witnessed the signing ceremony of the agreement with the World Bank at the Ministry of Economic Affairs Islamabad, the ministry said in a statement.

“Today’s event reflects continued confidence by the World Bank on the government’s policy and programs,” said Sadiq, while adding that the primary beneficiaries of this project will be low- and middle-income households in Pakistan reliant on informal incomes.

Mian Asad Hayaud Din, Secretary, Ministry of Economic Affairs Pakistan and Gailius J. Draugelis, Acting Country Director, World Bank signed the financing agreement, while representative of Pakistan Mortgage Refinance Company signed the project agreement.

Federal Minister for Economic Affairs Sardar Ayaz Sadiq witnessed the Signing Ceremony of Agreements of “Pakistan Housing Finance Project” worth US$ 85 million with the World Bank. pic.twitter.com/jQY5HOYvqm

— Economic Affairs Division, Government of Pakistan (@eadgop) June 15, 2022

Gailius said the deal was part of the World Bank’s continuous financial and technical assistance to Pakistan to help promote inclusive and sustainable economic growth.

Furthermore, the ministry said the 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.