ISLAMABAD, Dec 4 :Federal Minister for Finance and Revenue, Muhammad Aurangzeb said here on Wednesday that the government will not revert to directed lending to the housing sector and urged for creating incentivization to facilitate bank-led financing to make it accessible to public.
\n\u201cWe will not go back to directed lending, which was wrong thing to do. It creates distortions and has implications for the medium term,\u201d the minister said while speaking at International Affordable, Green & Resilient Housing Conference.
\nIn order to promote housing finance, the government will instead focus on creating incentivization mechanisms, he added. This approach will encourage banks and microfinance institutions to take the lead in providing housing finance, making it easier for people to access.
\nThe minister said, the country\u2019s housing sector was linked with two existential problems including population growth and climate change. With a population growing at an alarming rate of 2.5 percent, the minister said, it had far-reaching consequences, including child stunting, poverty, poor learning outcomes, and a significant number of girls being out of school.
\nHousing plays a critical role in addressing these issues, and the government recognizes its importance in providing affordable and resilient housing solutions, he added.
\nOn the other hand, he said, the devastating 2022 floods served as a wake-up call, highlighting the need for resilient housing that can withstand the impacts of climate change. He said, the Sindh government has taken the first step towards promoting resilient housing by discouraging the construction of houses on water banks.
\nHe said, to address the housing finance gap, the government plans to establish a regulatory authority that will enable financing for housing. Furthermore, the government aims to introduce foreclosure laws to encourage banks to lend to the housing sector.
\nTalking about the state of economy, the minister said, Pakistan has achieved notable milestones in its journey towards a sustainable and inclusive growth paradigm, with housing emerging as a critical pillar of this inclusiveness.
\nOver the past 14 months, the country has witnessed significant progress across various industries, marked by a reversal of the twin deficits on both fiscal and current account sides.
\nKey indicators of Pakistan\u2019s economic health are also showing promising signs as the foreign exchange reserves have increased to cover 2.5 months of imports, up from just two weeks previously. If this trend continues, Pakistan is expected to achieve three months of import cover by the end of the fiscal year, a benchmark considered satisfactory by international standards.
\nInflation has also been brought under control, with the rate dropping to a 78-month low of 4.9% in November. The policy rate is expected to decrease further, while the benchmark KIBOR has already fallen below.<\/p>\n","protected":false},"excerpt":{"rendered":"
ISLAMABAD, Dec 4 :Federal Minister for Finance and Revenue, Muhammad Aurangzeb said here on Wednesday that the government will not revert to directed lending to the housing sector and urged for creating incentivization to facilitate bank-led financing to make it accessible to public. \u201cWe will […]<\/p>\n
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