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Notwithstanding this dynamic approach, bank lending to targeted borrowers has yet to pick up as expected. File
Over the past year, the government and the State Bank of Pakistan (SBP) have remained on their toes to remove bottlenecks that surfaced in the process of implementation of PTI’s flagship ‘Mera Pakistan Mera Garh’ (MPMG) project. And it is an ongoing, continuing exercise.
Some features of incentives package offered to buyers, house builders, land developers and construction companies such as tax amnesty and liberal tax concessions, easier access to bank finance and subsidised credit have been quickly revised and related deadlines extended to remove difficulties faced by the potential stakeholders.
SBP’s framework to induce environmental, social risk management
Business
April 29, 2021
KARACHI: The State Bank of Pakistan (SBP) is formulating a regulatory guidance with assistance from the World Bank s private sector arm to enhance knowledge and capacity of banks on environmental and social risk management, people familiar with the matter said on Wednesday.
The framework will offer guidance on how banks integrate climate change and other sustainability concerns into their risk management systems. Pakistan sustainable banking project, the first of its kind, is in progress and is the SBP’s important initiative around green finance.
“The SBP is now working with IFC on the Pakistan sustainable banking project,” a SBP’s spokesperson confirmed with The News.
THE State Bank and Pakistan Banks Association have claimed that the housing and construction loans portfolio of banks has grown by Rs54bn to Rs202bn from July to March compared to a stagnant position in the same period last year. “Such growth in housing and construction finance in such a period has never been witnessed in the country’s history,” the joint statement reads. It says that bank financing for housing and construction is likely to increase significantly as mortgage finance activity under the Mera Pakistan, Mera Ghar scheme picks up. SBP data on house-building loans paints a different picture though. It shows the stock of housing finance to citizens has risen by just Rs13.7bn to Rs93.5bn. If house-building advances to bank employees the stock of which has grown by Rs25bn is also considered, the total housing finance portfolio increases by Rs38.8bn to Rs228.3bn. Even construction loans to developers/builders for residential buildings have grown by merely Rs11bn.