Prime Minister Imran Khan has said that the government’s housing scheme for under privileged and low-income people will give a boost to the construction sector and 30 allied industries, which will create wealth in the country to pay back its debts.
Virtually addressing the Housing Telethon, the Prime Minister said that it is for the first time in Pakistan that low-income people are being provided mortgage financing to own their houses by paying instalments in place of monthly rent.
The Prime Minister said that the government is trying its best to give preference to the widows and Special persons.
The Prime Minister said that once the people will start constructing their houses under the scheme, it will boost the construction industry and thirty other industries associated with it, which in turn will create wealth in the country. He said that Pakistan is burdened with the debts and wealth creation in the economy will help Pakistan repay its debts.
The Prime Minister said that banks have an important role to play in providing mortgage financing to people for construction or purchase of their houses, therefore banks should facilitate people in this regard. He directed Governor State Bank Raza (SBP) Baqir and President National Bank of Pakistan (NBP) Arif Usmani to ensure that the banks facilitate people. The Prime Minister said he acknowledges that there have been difficulties for people seeking to obtain loans and instructed all banks to simplify the process.
He said that although it is a regular practice in European countries, it is for the first time in Pakistan’s history that salaried individuals are being given a chance to own a house.
Earlier on Friday, the PM decided to increase the scheme’s loan limit by 100 percent. The decision was announced by PTI Senator Faisal Javed Khan, who wrote on Twitter that the Premier has not only decided to increase the loan limit for the scheme by 100 percent but the discounted mark-up rate has also been reduced to 3 percent and 5 percent.
Under the scheme, the people will be able to purchase 5 and 10 marla houses, flats, and plots, while those who already own properties will be able to construct houses on those plots under the scheme, the Premier’s aide wrote. He said that the loan limit has been increased to Rs10 million.
Governor State Bank of Pakistan (SBP) Dr Raza Baqir said that State Bank has an important role in the low-cost housing scheme as it ensures that the banks provide loans to the people as directed by the government.
Dr Raza Baqir said this on Sunday while participating in the housing telethon, which was live broadcast by Pakistan Television and other channels.
Senator Shibli Faraz, President National Bank of Pakistan Arif Usmani and Chairman Naya Pakistan Housing Authority Lt Gen (retd) Anwar Ali Haider, and Executive Director State Bank Samar Hasnain also participated in the telethon.
Dr Raza Baqir said that earlier in Pakistan the contribution of commercial banks in provision of loans for the housing sector was less than one percent of the economy. He said that the State Bank will determine the issues due to which the banks were not providing loans to the people for construction of houses and resolve those issues.
He said that due to the Prime Ministers scheme now people can get loans worth Rs1 million, which they can pay back in monthly instalments worth Rs6,600.
Senator Shibli Faraz said that Prime Minister Imran Khan is committed to making Pakistan a welfare state and the scheme for low-cost housing is aimed at providing housing facilities to the common people. He said that the success of the scheme depends on the role of the banks. The government is ensuring that banks facilitate the people without any difficulties, he added.
Speaking on the occasion Chairman Naya Pakistan Housing Authority Lt Gen (retd) Anwar Ali Haider said that the process of providing loans to the people under the Prime Minister’s low cost housing scheme has begun.
President National Bank of Pakistan Arif Usmani said that National Bank is facilitating people to get loans for construction of houses and for this purpose 1500 branches of NBP are providing information to the people, whereas 680 branches across the country are processing the applications for loans.
The citizens participated in the telethone via telephone and asked questions regarding the process of applying for the loan in the Naya Pakistan Housing Scheme.
