The World Bank will provide $85 million for low-cost home loans

Islamabad: On June 16, news sources said that the World Bank (WB) will give Pakistan USD 85 million for the low-cost housing project. The project will mostly help low- and middle-income Pakistani households that depend on informal incomes.

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Reports say that a deal was made between the government of Pakistan, which was represented by Mian Asad Hayaud Din, secretary of the Ministry of Economic Affairs, and Gailius J. Draugelis, acting country director of the World Bank. At the event, there were also people from the Pakistan Mortgage Refinance Company (PMRC). According to the agreement, the prominent people who will benefit from the project will be low- and middle-income Pakistani households that depend on informal income. The Pakistan Home Financing Project aims to help the government’s ongoing efforts to help families get housing loans and boost the growth of Pakistan’s capital market.

With the extra money from the WB, PMRC will be able to pay for the initial capitalization of the sub-trust of the Risk Sharing Facility that was set up as part of the USD 140 million parent project. The plan will let Primary Mortgage Lenders (PMLs) move from the top of the 5th quintile income group to the lower quintile income groups.

Under the Mera Pakistan, Mera Ghar initiative, Pakistan has started a low-cost housing and mortgage finance program. The plan is meant to solve the lack of housing in the country. The World Bank will contribute $85 million for low-interest mortgages.

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