KARACHI: Pakistan Mortgage Refinance Company (PMRC) has achieved landmark in its financing with the disbursement of Rs.200 million to Thardeep Microfinance.
PMRC has sanctioned the loan to support income housing in Thar after conducting visited to the area. Thar is a remote district of Sindh and one of the most impoverished areas of Pakistan and constantly disrupted by natural disasters, such as severe droughts and floods. People in Thar may not need mortgage loans for construction and purchase of houses but require loans for incremental housing, to construct roofs, additional rooms, kitchens, adequate sanitation and water storage. PMRC decided to provide concessional financing from its low-income line to Thardeep for these special needs. PMRC, public private partnership was set out to provide refinance for generation of housing loans in a tough rising interest rate environment and has lend nearly Rs.8 billion to a variety of financial institutions. PMRC has a long-term credit line from the World Bank that was on-lent by the Government of Pakistan and in just one year it has utilized and disbursed a significant portion. It is now getting ready to raise additional funding through bond issuance from the market leveraging its AAA rating and strong balance sheet.
PMRC clientele has so far ranged from small micro finance entities to the largest commercial bank in the country i.e. Habib Bank Limited. Some of its partner financial institutions include House Building Finance Corporation, Bank Alfalah, Askari Bank, JS Bank and First Women Bank Limited. PMRC’s innovative solutions included a first Islamic housing refinance product which was provided to Bank Islami. PRMC going forward is also looking to include Micro Finance Banks, Modaraba Companies and other NBFIs as its partners.
Housing has been the talk of the town in Pakistan for quite some time. To address the situation and increase access, the Naya Pakistan Housing Development Authority is expected to play a critical role through provision of necessary infrastructure and supply of affordable housing. PMRC has a major role to play in this regard.
