Staff Reporter
Karachi
BankIslami Pakistan Limited, one of the country’s leading Islamic banks with a strong network of 335+ branches in 114+ cities, has signed a Master Credit Guarantee agreement with Pakistan Mortgage Refinance Company (PMRC), to avail risk cover for low-income housing finance. PMRC is setup as a mortgage liquidity facility that addresses the long term funding constraints in the banking sector, and ensures sound lending.
With the agreement between the two leading institutions, both BankIslami and PMRC have affirmed their commitment to mutually improve housing finance in Pakistan.
Risk coverage will assist BankIslami and PMRC in providing affordable housing finance to fresh homeowners in Pakistan and will help the bank to alleviate the credit risk, while ensuring affordable mortgage facilities to the low-income segments of the population.
This 10-year credit guarantee scheme has been classified as liquid security by the State Bank of Pakistan, and will provide risk coverage for BankIslami over 40% of the eligible housing portfolio outstanding amount. This step has been taken in line with the Prime Minister and the SBP’s efforts to make housing affordable by making financing more accessible.
The Chief Guest at the occasion, Mr. Jamil Ahmed, Deputy Governor, State Bank of Pakistan, stated; “The housing and mortgage industry is among the most profitable sectors for any country. It not just offers jobs on a large scale but also allows economies to be bolstered.
The SBP has been continuously taking steps for capacity building and setting up of PMRC was a part of this strategic plan. SBP with the collaboration of the World Bank established this liquidity facilitation entity to create efficient avenues for the growth of low cost housing finance in the country.”
Managing Director and CEO, Mudassir H. Khan said while speaking at the occasion that; “This is a proud moment for us all and I would like to thank everyone who has been a part of this project from the start. In just the last two years, PMRC has received more than PKR 15 billion in advances which is a significant achievement.
