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Bank Financing to Housing and Construction Crosses Rs 200Bn

According to data released by the State Bank of Pakistan, banks’ housing and construction finance portfolio increased to Rs. 202 billion in March 2021 mostly as a result of the government’s and the banking regulator’s policies to promote home finance through low-cost housing schemes (SBP).

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Bank lending for housing increased to its highest level ever, which was Rs. 103 billion, over the course of many decades.

Also, the banks have granted the applicants financing totaling more than Rs. 15 billion, while the remaining applications are still undergoing various phases of review and approval.

Once the government, banking authorities, and banks established low-cost housing plans over a period of one and a half years, housing and construction financing advanced rapidly.

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The Government of Pakistan intends to greatly increase the number of housing units in the coming years and has already taken a number of steps in this direction, keeping in mind the need to improve housing in the nation and the significant role that the construction sector plays in boosting economic activities in the countries.

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