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SBP Orders Bank to Pause Financing Homes Under PTI’s Mera Pakistan Mera Ghar Scheme

The State Bank of Pakistan (SBP) Thursday instructed banks to put further disbursements under Mera Pakistan Mera Ghar (MPMG) on hold.

The central bank also instructed banks to hold fresh disbursements under the Prime Minister’s Kamyab Jawan Youth Entrepreneurship Scheme (PMKJ-YES).

“Government of Pakistan is considering to review/revise features of subject Scheme in light of recent developments in macroeconomic scenario. Accordingly, banks/DFIs/MFBs are advised to put further disbursements under MPMG on hold from July 01, 2022, till August 31, 2022,” the central bank said in a circular.

However, the central bank said that in those cases where partial disbursements have already been made till June 30, 2022, banks/DFIs/MFBs may release the remaining disbursement under MPMG, it added.

In another circular, the central bank said that the government is considering reviewing/revising features of PMKJ-YES in light of recent developments in the macroeconomic scenario.

Accordingly, banks participating as executing agencies under the said scheme are advised to put on hold fresh disbursement from July 1, 2022, to July 15, 2022, it said.

The development will shatter the dreams of middle and lower-middle-class people who had planned or submitted applications to banks for purchasing a housing unit.

According to various studies, there is a deficit of over 12 million housing units in Pakistan with continuous growth in demand due to the rising population.

The scheme was launched by the previous government. All commercial banks and the State Bank of Pakistan (SBP) did extensive work to design a house financing scheme that could be affordable for people with no ownership of a house.

As per the latest data released by the SBP, commercial banks in Pakistan have approved Rs. 212 billion and disbursed Rs. 85 billion to customers across the country so far under the Mera Pakistan Mera Ghar scheme.

The scheme also aimed at stirring the economic growth and employment in the construction sector which comprises over 40 allied industries. The construction sector contributed 2.5 percent to GDP and 7.71 percent of the employed Pakistani labor force is engaged in the construction sector, according to the Economic Survey of Pakistan for FY21.

Source: Radio Pakistan

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PM reaffirms resolve to deepen Pak-Bahrain economic ties

Prime Minister Shehbaz Sharif has reaffirmed his government’s commitment to forge deeper economic, trade and investment cooperation with Bahrain.

He said this, while receiving a telephone call from National Guard Commander of Bahrain His Highness General Shaikh Mohammed bin Isa Al Khalifa on Wednesday.

The Prime Minister said Pakistan attaches great importance to its relations with Bahrain.

Lauding the successful measures by Bahrain against the global pandemic, Shehbaz Sharif thanked the Bahraini leadership for the measures taken by the Bahraini leadership to look after the Pakistani expatriates, especially during the pandemic.

He also welcomed the project of King Hamad Nursing University and Associated Medical Sciences Hospital in Islamabad, which is a testament to the close brotherly relationship between the two countries.

The Prime Minister added that he looks forward to welcome King Hamad Bin Isa Al-Khalifa to Pakistan at an early date.

The National Guard Commander of Bahrain extended his warm felicitations to Muhammad Shehbaz Sharif on his assumption of office as the Prime Minister of Pakistan.

The Prime Minister thanked the National Guard Commander for his gracious gesture.

It is pertinent to mention that Bahrain is home to a large Pakistani diaspora in the Gulf Region. Pakistan and Bahrain enjoy close, cordial ties resting on the firm foundation of shared faith and values.

The two countries closely collaborate bilaterally, as well as on regional and global issues of mutual interest.

Source: Radio Pakistan

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Pakistan, China working together to ensure transparency in CPEC projects: Chairman NAB

Chairman National Accountability Bureau Javed Iqbal says Pakistan and China are working together to ensure transparency in the ongoing China Pakistan Economic Corridor projects.

In a statement, he said Pakistan is the only country that has signed a memorandum of understanding with China to fight corruption.

The Chairman said NAB has no affiliation with any political party, group or individual rather it has affiliations with state of Pakistan.

Source: Radio Pakistan

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PM orders to provide financial assistance to fire-affected farmers in Sialkot

Prime Minister Shehbaz Sharif has ordered provision of financial assistance to farmers, whose wheat crop caught fire in Sialkot due to a technical fault in a harvesting machine.

He directed the Punjab Government to immediately release cheques to the affected farmers.

It is pertinent to mention that the fire erupted due to a malfunction and leakage in a harvester machine. As a result of which, a fire erupted that burnt fields of ready to harvest wheat crop in Bela Pul Bajwaan village of Bajwat Sector in district Sialkot.

According to a government report, 15 farmers were affected and the fire engulfed standing crop on 77 acres of land.

Source: Radio Pakistan

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Pakistan, IMF discuss pathways to complete 7th review of IMF programme

The Pakistan delegation held several meetings with the IMF officials and discussed pathways to complete seventh review of the IMF programme.

The delegation led by Finance Minister Miftah Ismail laid out Pakistan government’s priorities and efforts to bring fiscal discipline while insulating the vulnerable from oil price volatility in the international markets.

The IMF expressed support to the Pakistan delegation.

An IMF mission lead by Mission Chief Mr Nathan Porter will visit Pakistan next month to discuss the issues around subsidies on petrol and electricity announced by the out going government.

The delegation also met Mr. Axel von Trotsenburg, Managing Director, Mr Hartwig Schafer, Vice President and other officials of the World Bank.

Progress of on-going program loans and projects as well as avenues for further assistance were discussed.

The Finance Minister thanked the Bank officials for the financial and technical support provided by the Bank throughout.

Source: Radio Pakistan

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President, PM discuss political, economic matters

Prime Minister Muhammad Shehbaz Sharif called on President Dr Arif Alvi at Aiwan-e-Sadr, Islamabad today (Wednesday).

Issues relating to the political and economic situation in the country were discussed during the meeting.

Source: Radio Pakistan

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NA pays tribute to late MNA Iqbal Muhammad Ali

The National Assembly on Wednesday met briefly at the Parliament House in Islamabad with Speaker Raja Pervaiz Ashraf in the chair.

The House as per its tradition suspended its agenda to pay tribute to late MNA Iqbal Muhammad Ali.

The lawmakers commended services of late Iqbal Muhammad Ali for the cause of democracy, constitutionalism, and development.

Those, who spoke on the occasion, include Minister for Defence Khwaja Muhammad Asif, Minister for Communications Asad Mahmood, Minister for Health Abdul Qadir Patel,Engineer Qasim Khani, Ramesh Kumar Vankwani, Sheikh Salahuddin, Mohammad Aslam Bhootani, Naz Baloch, Usama Qadri, Khurram Dastgir Khan, Shagufta Jamani, Dr. Muhammad Afzal Khan Dhandla, Moulana Abdul Akbar Chitrali, Dr. Darshan, Saira Bano, Tahira Aurangzeb, Rana Muhammad Qasim Noon and Agha Rafiullah.

It is pertinent to mention that late Iqbal Muhammad Ali was elected from Karachi on the ticket of the Muttahida Qaumi Movement-Pakistan.

The House will now meet tomorrow (Thursday) at 11 am.

Source: Radio Pakistan

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Banks Have So Far Approved Rs. 180 Billon Low-Cost Housing Loans

Banks have approved applications amounting to Rs. 180 billion and disbursed Rs.66 billion against the approved applications under Mera Pakistan Mera Ghar Scheme till April 11, 2022.

This shows an increase in approvals of applications of more than 11 times as, a year ago, in April 2021, the banks had approved only Rs. 16 billion.

According to the State Bank of Pakistan, Banks received applications for housing finance amounting to Rs. 409 billion, which was merely Rs. 57 billion a year ago, reflecting an increase of more than 7 times.

Similar trends can also be observed in the overall financing of the housing and construction sector by banks. Banks almost doubled their housing and construction finance portfolio to Rs. 404 billion as of March 31, 2022, from Rs. 204 billion a year earlier. In increasing their housing and construction finance, banks have also achieved, almost 100 percent, of the first quarter target of Rs. 405 billion for 2022.

To improve the provision of financing for the housing and construction sector to increase adequate housing in the country and boost construction sector activities, the State Bank of Pakistan (SBP) with the support of the Government of Pakistan has taken several measures since July 2020.

In October 2020, the Government of Pakistan augmented these efforts by introducing the Government Markup Subsidy Scheme, now commonly known as Mera Pakistan Mera Ghar (MPMG) Scheme. Available in both conventional and Islamic modes, this scheme enables banks to provide financing for the construction and purchase of houses at very low financing rates for low to middle-income segments of the population.

Key initiatives taken under the MPMG scheme included allowing acceptance of third-party guarantee during the construction period, waiver of Debt Burden Ratio (DBR) in case of informal income, and the introduction of standard facility offer letter by the banks. SBP also advised banks to develop and deploy income estimation models for borrowers with informal sources of income. In addition to gauging readiness, knowledge, and appropriateness of behavior of banking staff towards customers, regular mystery shopping of banking branches was also conducted by State Bank all over the country.

The current progress under MPMG is also attributed to banks’ improved preparedness for handling housing finance that includes alignment of banks’ strategic focus, continued improvements in their systems and procedures, training and capacity building of staff, extensive marketing, and leverage of technology to reach out to customers.

These improvements have helped banks better handle financing requests of potential customers. The huge influx of applications and subsequent approvals of financing by banks under the Scheme indicates that the current momentum of disbursements under MPMG will continue in the coming months as well.

SBP also advised housing and construction finance targets to banks on July 15, 2020. Banks were required to increase their housing and construction finance portfolio to 5 percent of their domestic private sector advances by the end of 2021. As a result, banks’ financing to the housing and construction sector increased to Rs. 367 billion as of December 31, 2021, from Rs. 148 billion as of June 30, 2020. By 2022, banks have been advised to increase their housing and construction portfolio to 7 percent of their domestic private sector advances i.e. up to Rs. 560 billion.

Source: Pro Pakistan