The annual housing shortfall of 270,000 homes and a 9 million housing backlog is a clear indication of the fact that the huge housing need in Pakistan cannot be stressed enough. For the average Pakistani it is even more difficult to acquire home ownership due to inflation and the shoot in prices each year.
In order to target this key issue and promote cost effective housing in Pakistan, the Bank of Punjab and Reall Limited, UK signed a Memorandum of Understanding. The MOU was signed between the Director of Operations and Investment, Reall Limited, Mr. Patrick Domingos-Tembawa and Mr. Asif Raza, Group Head Retail and Priority Sectors Lending, the Bank of Punjab.
The MoU marks an important step in scaling the supply of affordable homes in the country as it will help finance the builders and developers of low-cost housing projects. Moreover, under this MOU, the low income buyers of these housing units can also acquire loans at subsidized ratesunder the State bank of Pakistan’s Mark-up Subsidy Scheme from the Bank of Punjab. This aligns perfectly with the government’s agenda to promote the Housing and Construction Industry to provide affordable housing to the public.
Expressing his hopes and delight, Mr. Zafar Masud, President and CEO of the Bank of Punjab dictated that the alliance between BOP and Reall will act as a catalyst to promote the efforts of SBP and NAPHDA/GoP and will make it feasible for the much needed borrowers in the informal sector to acquire living.