Staff Reporter
Karachi
Pakistan Banks’ Association (PBA) believes that Housing & Construction Finance sector is a critical contributor to the overall economy, because of its multiple linkages to other avenues of economic development. However, Housing & Construction Finance is presently very low in Pakistan, contributing less than one percent of the country’s GDP; it is also one of the lowest in the region and comparable countries.
PBA welcomes the positive steps taken by the Government & State Bank of Pakistan that are key enablers for growth of the Housing & Construction finance sector. These steps include low interest rates, more effective foreclosure laws and construction being accorded an ‘Industry’ status. While there are still a few unresolved issues which are being actively worked upon, PBA believes it is a good time for its member banks to see this as a growth area for future lending on a secured basis, with reasonable spreads.
Given its widespread benefits for the economic development of Pakistan, PBA supports the growth of Housing & Construction Finance and encourages its member banks to view it as a sound business proposition.
