ISLAMABAD – The World Bank on Friday approved a $435 million package to increase access to affordable housing and in support of mortgage finance for low-income people in Pakistan.
The board of executive directors of the US-based financial lender approved the package. Pakistan Housing Finance project, the Punjab Urban Land Systems Enhancement project, and the Punjab Affordable Housing Program will get the funds under this package.
The move aimed to empower low-income families to own a residence while it also help improve land tenure rights.
World Bank Country Director for Pakistan Najy Benhassine, said: “Affordable and accessible housing is in high demand in Pakistan, which is home to over 200 million people and is the most urbanized country in South Asia.”
Benhassine added that these projects will contribute to addressing housing needs by leveraging the private sector and by facilitating access to mortgage options for those who currently cannot access financing to buy a home. They will also strengthen property rights and increase the supply of climate-resilient, affordable housing developments.
The international financial institution said Punjab Affordable Housing Program will get $200 million as the project will aim to facilitate nearly 77,000 people, particularly low-income households, in the country’s most populous region Punjab.
Furthermore, the package will encourage private financing for mixed-income housing developments.
A sum of $85 million will be spent to “expand access to affordable mortgages to increase homeownership among low-income households” through Prime Minister’s Mera Pakistan, Mera Ghar Housing Scheme.
Meanwhile, $150 will be spent on Punjab Urban Land Systems Enhancement Project. The project aimed to strengthen land administration and identify areas suitable for low affordable housing schemes but also help provincial government making land registration across the province digital.
