Pakistan Banks’ Association (PBA) has said housing and construction finance sector is a critical contributor to the overall economy because of its multiple linkages to other avenues of economic development. In a handout issued here PBA said housing and construction finance was presently very low in Pakistan, contributing less than one percent of the country’s GDP; lowest in the region.
PBA said it welcomes the positive steps taken by the government and State Bank of Pakistan (SBP) for growth of the housing and construction finance sector. These steps included low interest rates, more effective foreclosure laws and construction being accorded an ‘Industry’ status. While there are still a few unresolved issues which are being actively worked upon. PBA believes it is a high time for its member banks to see this as a growth area for future lending on a secured basis, with reasonable spreads. Given its widespread benefits for the economic development of Pakistan, PBA supports the growth of housing and construction finance and encourages its member banks to view it as a sound business proposition, the handout concluded.
