Karachi: The State Bank of Pakistan (SBP) on Monday revealed that the government had green-lighted a ‘markup subsidy facility’ for the purchase and development of new houses – under its vision of providing ‘affordable housing to the masses’, according to the news sources.
The facility would be extended with the administrative support of the SBP, under its executing partner capacity – with the federal government and the Naya Pakistan Housing and Development Authority (NAPHDA). The facility also enables an individual to avail subsidised financing and mark-up rates to either construct or buy their home.
Reportedly, the government has allocated PKR 33 billion for the mark up subsidy payment “for financing over a period of 10 years and has assured the continuity of the said facility”. To this effect, the central bank and the government have already inked a memorandum of understanding (MoU).
The markup subsidy facility would be made available at all the banks and is divided into three tiers:
- Tier-I: Financing would be provided for the purchase of houses/apartments/flats of land area up to 5 marla or 125 sq yds, with a covered area of 850 sq ft (max) and price amounting to PKR 3.5 million, under the NAPHDA projects. A limit of PKR 2.7 million with a maximum tenor of up to 20 years has been set for tier-1.
- Tier-II: Financing is available for houses/flats/apartments up to 125 sq yds or 5-marla – with a maximum covered area of 850 sq ft and maximum price of PKR 3.5 million. The financing limit under this tier is PKR 3 million with a tenor of 20 years.
- Tier-III: The financing facility under tier-3 is extended for the promotion of affordable housing for the middle-income families. It allows subsidised financing for the purchase or construction of apartments/houses/flats of land area over 5-marla (125 sq yds) and up to 10-marla (250 sq yds) – with maximum covered area from 850 sq ft to 1,100 sq ft and maximum price of PKR 6 million. The financing limit under this tier is PKR 5 million with a tenor of 20 years.