The SBP directs banks to resume subsidized home financing
The State Bank of Pakistan (SBP) ordered all commercial banks to resume disbursing home loans under the Mera Pakistan, Mera Ghar (MPMG) plan on Tuesday, August 2, according to news reports in Karachi. For all cases approved before July 25, the fund disbursement will reopen.
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Following the Ministry of Finance meeting, the SBP released a circular informing banks to reduce their spread over the Karachi Interbank Offered Rate so that payments to already-approved cases under the MPMG Scheme may resume (KIBOR). Additionally, SBP recommended candidates to contact SBP and file a complaint at servicedesk.sbp.org.pk if they run into problems with the application process. The central bank said in a series of tweets that it will closely monitor all instances to deal with any problem that might arise.
It’s important to remember that the government stopped funding under MPMG because to rising market policy rates and financial constraints. The funding halt took place from June 1 until August 31. The government is still working to make the loan terms and conditions more sustainable, according to the ministry.