Housing, construction finance disbursement records increase of Rs111b during FY21

Prime Minister Imran Khan also appreciated the efforts of the State Bank of Pakistan (SBP) in stimulating the housing and construction finance in the country, which was hitherto a neglected area within commercial banks.

An increase of this quantum in housing and construction finance in one year is unprecedented in Pakistan’s history, said the SBP.

As a result, 97% of the overall target set by SBP for June 30, 2021, was met.

State Bank earlier mandated banks to increase their housing and construction finance portfolio to at least 5 per cent of their private-sector advances by December 2021.

In April 2021, banks were given separate targets under MPMG to induce them to grow a segment of housing finance after which number of applications increased significantly and the number of loans applied for more than doubled in the last quarter of FY21 to Rs111 billion.

As of June 30, 2021, banks have approved home financing worth Rs39 billion.