Originally published at: https://www.mawazna.com/blog/home-loans-pakistan-initiative-less-privileged/
The government of Pakistan(GOP) has started an initiative of housing loans for the low-income strata with the help of World Bank. World Bank is providing a soft loan of $150 million at the rate of 1.25% to the State Bank of Pakistan(SBP), which the SBP will further provide it to the Commercial Banks, and they will utilize it for the mortgage purpose.
Housing loan initiative by the Government of Pakistan is a fundamental step for settling the issue of a population explosion, the country is facing right now. In today’s world, where people are suffering due to the lack of access to basic needs, housing is one of them. The Government initiative of providing soft housing loans backed by the World Bank will prove as a facilitator for the low-income strata. This will not only take care of the ever-growing slum but also helps in managing the population balance among the cities.
Currently, the major cities of Pakistan are over-crowded with the population influx from the rural cities, due to the unavailability of housing facilities, and devoid of the basic needs. Resultantly, the presence of Katchi Abadis inside the cities creates hassle not only for local government but also deprived the people living in those slums of the basic necessities, which includes health and education facilities. Further, it also aggravates the situation of the social deviance in the particular province and overall in the country. This creates room for the un pleasant security threatening incidents.
In a nutshell, offering housing loans at the lower mark-up rate to the masses will help in lessening the crisis the country is facing as of now. Besides, it further enhance the law and order situation with an added edge of catering human basic needs.