Daily Times

Pakistan and the World Bank (WB) on Wednesday signed the agreement worth $85m for a house finance project to benefit the low- and middle-income households in Pakistan. The Federal Minister for Economic Affairs, Sardar Ayaz Sadiq witnessed the signing ceremony of agreements of “Pakistan Housing Finance Project” (PHFP) worth $85m with the World Bank at the Ministry of Economic Affairs Islamabad.

Mian Asad Hayaud Din, Secretary, Ministry of Economic Affairs Pakistan and Mr Gailius J. Draugelis, Acting Country Director, World Bank signed the Financing Agreement while representatives of Pakistan Mortgage Refinance Company (PMRC) signed the Project Agreement.

The Acting Country Director, Mr Gailius, ensured the World Bank’s continuous financial and technical assistance to the Government of Pakistan to help promote inclusive and sustainable economic growth in Pakistan. While witnessing the signing ceremony, the Minister for Economic Affairs, reiterated the parameters of valued partnership with the World Bank. He also stated that today’s event reflects continued confidence by the World Bank on the Government’s policy and programs. He particularly announced that the primary beneficiaries of this project will be low- and middle-income households in Pakistan reliant on informal incomes.

The Pakistan Housing Finance Project is aimed at supporting the ongoing efforts of the Government of Pakistan in increasing access to housing finance for households and supporting capital market development in Pakistan.

This additional financing will fund the initial capitalization of the sub-trust of the Risk Sharing Facility created under the parent project of $140m being executed by Pakistan Mortgage Refinance Company. The project will enable the Primary Mortgage Lenders (PMLs) to move from the very upper end of the households in the 5th quintile to lower quintile income groups.

Therefore, the financial sector at large will also benefit greatly as the project will help deepen the primary mortgage market, in addition to supporting the development of the capital market.