A record Rs163 billion in housing and construction financing was generated in FY21, including Rs38 billion from the Mera Pakistan Mera Ghar programme (MPMG). Banks’ outstanding credit for housing and construction increased by Rs163 billion, from Rs192 billion to Rs355 billion, in 2021, a record-breaking growth of 85 percent, SBP said in a press release on Thursday. MPMG, or the Government Markup Subsidy Scheme, saw an increase in disbursements of Rs38 billion within the housing and construction portfolio. Housing and construction financing, especially under MPMG, has seen impressive growth as a result of numerous enabling regulatory environments introduced following extensive consultation with stakeholders. A set of incentives and penalties were introduced by SBP to ensure compliance with its recommendation that banks increase the share of housing and construction finance in their domestic private sector advances by at least 5pc by December 2021. When it comes to significant growth in Housing and Construction Finance, the top three contributors were Habib Bank, Meezan Bank, and Bank Al Habib. As of 2020, banks had also made significant strides in providing financing through the MPMG scheme. Banking approvals for financing under MPMG increased from near zero in 2021 to Rs117 billion in 2021. A total of Rs276 billion in funding requests has been received by banks from potential customers, indicating that approvals and disbursements will continue to rise in the coming months. A total of ten banks disbursed more than Rs2 billion each, with Alfalah leading the pack at Rs3.3 billion. Meezan Bank, Bank Islami, National Bank, Standard Chartered Bank, HBFCL, United Bank, MCB Bank, Bank of Punjab, and Habib Bank are just a few of the many financial institutions in the province that fall under this umbrella. Several measures have been taken by SBP in order to create a regulatory environment that encourages banks to increase the amount of money going into the housing sector. Third-party guarantee acceptance, waiver of Debt Burden Ratio (DBR) for informal income, and the introduction of a standard facility offer letter are all important measures. It has also advised banks to develop and implement models for borrowers who earn their money through informal means. State Bank conducts regular mystery shopping surveys of bank branches across the country in order to assess the readiness, knowledge, and appropriate behaviour of banking staff toward MPMG customers. Loan application forms have been standardised and simplified in accordance with the State Bank initiatives.