SBP and Banks hold Mela in Faisalabad to promote financing for affordable housing

State Bank of Pakistan (SBP) together with banks held a Mela in Faisalabad today to increase awareness about the affordable housing financing scheme introduced jointly by the SBP and the Government of Pakistan. In 2020, SBP took several measures to support the provision of financing for the housing and construction sector.

The Government of Pakistan augmented these efforts by introducing the Government Markup Subsidy Scheme, which is now commonly known as Mera Pakistan Mera Ghar (MPMG) markup subsidy Scheme.

Read also

KCCI worried over rising Dollar

British High Commissioner Visits MG Local Assembly Facility In Lahore

Governor SBP, Dr. Reza Baqir performed the ribbon-cutting ceremony to mark the opening of the Mela in an inaugural session attended by dignitaries from public and private sectors. The two-day event, from 19th to 20th March, has been organized in collaboration with NAPHDA, banks, and their allied builders and developers. The banks and builders/developers have placed stalls and kiosks for information dissemination among visitors. Banks facilitated and encouraged interested applicants to submit their applications at the stalls.

Addressing the audience in his inaugural speech, Governor SBP, expressed his pleasure that the Mela is providing a unique opportunity to all key stakeholders to provide a one-stop solution for creating awareness under one roof. He said that the MPMG scheme is envisioned to provide affordable housing solutions to low and middle-income groups in the country. He acknowledged banks’ efforts in making MPMG a success story. To date, banks have approved Rs157 billion under MPMG and disbursed Rs56 billion. Mortgage financing has largely been ignored by banks for one or the other reason in the past. Sharing his views on the pickup of financing under MPMG, he expressed that progress made, so far, is commendable and that achieving the target of giving an opportunity to every Pakistani family to own a house is desirable. He showed confidence that if the banks continued with the same zeal, they could achieve this formidable task.

Assuring full support of banks and SBP for promoting MPMG, Dr. Baqir urged the business community of Faisalabad, including members of the chamber of commerce and business groups, to encourage their employees, who do not own a house, to avail financing under this scheme. Commenting on the successful experience of organizing the Mela, Dr. Baqir advised the banks to arrange focused programs at the premises of major employing firms in Faisalabad and other cities to offer MPMG financing facilities to their employees. He also advised banks to further speed up their processing time, and mobilize more resources for the promotion of housing solutions, especially to the low waged personnel.

During the inaugural event SBP officials presented details of the scheme and its progress and a few bank customers, who availed financing under MPMG, also shared their experiences. The event was attended by prominent personalities including officials from the Ministry of Housing, the Commissioner, Deputy Commissioner Faisalabad, Presidents of Banks, Vice-Chancellors of Universities, President Faisalabad Chamber of Commerce, and Industry, senior members of business associations and business firms and builders & developers, etc.

It is pertinent to mention that banks have taken several initiatives to promote MPMG housing finance including allocation of 50% of their branches to facilitate financing under MPMG, preparing an income assessment model to facilitate informal income applicants, and establishing a joint call center to address queries and concerns of potential customers.

The banks have also provided e-tracking systems to applicants to track the progress of their requests and have simplified loan application forms and relevant documentary requirements. They have also conducted extensive social, print, and electronic media campaigns to promote awareness about the scheme.