The Government of Pakistan (GOP) has launched the housing loans with the help of the World Bank. World Bank urges Pakistan to uplift the lower-income strata by providing housing loans. Worth $150 million has been handed over to the GOP in the form of soft loan. The World Bank will provide the loan at the mark-up rate of 1.25%, and the State Bank will provide the loan to the Commercial Banks, and they will utilize it for the mortgage purposes.
This housing loan funded by World Bank leaves a positive mark on the real estate industry. It will encourage the people with the low income towards the real estate investment. Resultantly, it will increase the competition in the market, and the sellers are more prone towards quality rather than quantity. Covering the larger base of the consumers gives impetus to the industry revenue generation capacity and a boost in the GDP of the county. As, business are the pillars of any country’s economy. Besides this, housing loans helps the people in settling in their own home towns, despite urge them to migrate towards the major cities. It also ensures the overall development in the country. Enhancing the living standards of the masses with proper access to the basic facilities.
In a nutshell, housing loans facility provided by the GOP and funded by World Bank will give a boost to the real estate sector. Further, it addresses the issue of the rising population explosion in the realm of increasing demand and stringent supply of the available resources.