KARACHI: The government has formed a Credit Guarantee Trust (CGT) with participation of the State Bank of Pakistan (SBP), six commercial banks and the Pakistan Mortgage Refinance Corporation (PMRC) to boost low-cost housing in the country, a press release showed on Monday.
The CGT has been established with the support of the World Bank and the SBP.
The PMRC as the trustee signed a master guarantee agreement with six leading Islamic and conventional banks including Meezan Bank, Habib Bank, BankIslami, Faysal Bank, JS Bank and Soneri Bank.
“This is a major step for the government’s Naya Pakistan Housing Program and making affordable housing possible for all,” the SBP said in the press release.
Credit Guarantee Trust Set up To Promote Low-cost Housing in Pakistan
The trust is supported by State Bank of Pakistan (SBP) and funded by theWorld Bank.
The Credit Guarantee Trust will provide risk coverage of up to 40 percent to primary mortgage financiers on first loss basis. The guarantee will partially alleviate the credit risk of primary mortgage financiers and provide a conducive environment for banks to finance housing for the low-income.
Keeping in view the dynamics of the mortgage market and to facilitate market growth, the scheme has been designed for both conventional and Islamic banks
In this regard, PMRC as trustee today signed a Master Guarantee Agreement with six leading Islamic and conventional banks including Meezan Bank, Habib Bank, BankIslami, Faysal Bank, JS Bank and Soneri Bank.
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The leading drivers and trends driving the growth of the prefabricated building system market are discussed below:
Several governments across the world are taking initiatives to provide affordable housing. For instance, the government of India is planning to provide housing for all by 2022, which requires the construction of around 30 million low-cost houses. Similarly, the launch of the Naya Pakistan Housing Program (NPHP) in Pakistan has attracted several foreign investors and construction companies to construct reasonable housing for the poor and the homeless. Saudi Arabia has a homeownership strategy, which estimates 70% of residents possessing homes by 2030. The Singapore public housing development process has more value for other countries to understand the usage and implementation of prefabricated material for housing projects. In 2019, the bathrooms of most of the newly launched Housing and Development Board’s flats were assembled off-site in Singapore. Prefabricat