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Is Pakistan ready for securities backed by mortgage? - Newspaper

Mortgage-backed securities are blamed for the 2008 global financial crisis. Reuters/File KARACHI: With housing finance gradually picking up the pace amid the government’s push to promote homeownership, Pakistan Mortgage Refinance Company (PMRC) is expecting to issue its first mortgaged-backed bond in the next couple of years. “Eventually, we want to buy out the banks’ housing portfolios, securitise them and package them for onwards sales in the bond market,” said PMRC CEO Mudassir H. Khan in a recent interview to Dawn. PMRC is one-of-a-kind government-backed company that provides long-term liquidity to banks that are primary mortgage lenders. “We’re waiting for the banks to build their mortgage portfolios to a level where they’ll need to carve them out of their balance sheets in order to curb the concentration of risk,” he said.

Banks allowed to invest in TFCs

Banks allowed to invest in TFCs Business April 2, 2021 KARACHI: The State Bank of Pakistan has allowed banks and development finance institutions (DFIs) for investment in term finance certificates (TFCs), Sukuk, and share of real estate investment trusts (REITs) to achieve the mandatory housing finance targets, a circular issued on Thursday said. In July 2020, the central bank advised banks and DFIs to achieve mandatory financing targets for housing and construction of buildings (Residential and Non-Residential) equivalent to at least 5 percent of their domestic private sector advances by December 31, 2021. To increase funding for housing and construction through capital markets and microfinance banks (MFBs), the State Bank has decided to allow counting of the following exposures of banks/DFIs towards the achievement of their housing and construction finance mandatory targets, including direct financing to/or investments in bonds/TFCs/Sukuk issued by REITs management companies

Tax exemptions withdrawal bill lands in NA secretariat - Newspaper

The Federal Board of Revenue (FBR) has submitted a bill to the National Assembly secretariat proposing a string of amendments to withdraw around 36 tax exemptions. Dawn/File ISLAMABAD: The Federal Board of Revenue (FBR) has submitted a bill to the National Assembly secretariat proposing a string of amendments to withdraw around 36 tax exemptions and streamline other corporate tax exemptions, which will come into effect from July 1, 2021. The corporate income tax reforms are in line with recommendations of the International Monetary Fund (IMF). The Fund estimates it will generate revenue of Rs140 billion. The bill, which will be called the income tax (second amendment) bill 2021, will be introduced in the next session of the lower house, whenever convened.

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