Prime Minister Awards Best Performing Banks To Mark Rs 100 Billion Approvals Under MPMG (12/24/2021)

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External relationships Department

ERD / M & PRD / PR / 01 / 2021-149

December 24, 2021

Prime Minister awards best performing banks to sign approvals of Rs 100 billion

MPMG

A ceremony was held at the Prime Minister’s House in Islamabad on December 24, 2021 to approve the Rs 100 billion home finance approvals of the government’s flagship program, Mera Pakistan Mera Ghar (MPMG) under the theme “Khawab ke tabeer ab tez ter”, to celebrate. The Prime Minister praised the leading role played by the State Bank of Pakistan and the efforts of the banking industry in implementing the MPMG. He also witnessed ceremonial keys being presented to six MPMG beneficiaries from different regions and representing different parts of Pakistan. Over 20 other beneficiaries of the MPMG also took part in the ceremony. The Prime Minister said he was pleased that low- and middle-income citizens, previously completely ignored, are now being served by banks to finance their homes. While handing out awards among the top performing banks for approvals and withdrawals, he urged banks to accelerate their efforts to make every Pakistan’s dream of owning a home a reality. Bank Alfalah secured the top position, followed by Meezan Bank Limited and Standard Chartered Bank Limited. Ali Amin Gandhapur, Federal Minister for Kashmir Affairs and Gilgit Baltistan, Dr. Shahbaz Gill, Special Assistant to the Prime Minister for Political Communications, Senator Shaukuat Tareen, Advisor to the Prime Minister for Finance and Revenue, Governor State Bank of Pakistan, Chairman NAPHDA, Dr. Amjad Ali Minister of Housing Khyber Pakhtunkhwa and Presidents / CEOs of Banks.

Dr. Reza Baqir, Governor State Bank of Pakistan, shared the progress of the MPMG since its inception, stressing that all stakeholders are taking steps in the right direction to make the Prime Minister’s vision of more home ownership a reality. As of December 20, 2021, banks have applications of Rs. 263 billion, while approvals of Rs. 109 billion have already been made. In the past nine months the approved amount increased by Rs. 98 billion. Payouts have also increased from almost zero in March 2021 to Rs. 32 billion by December 20, 2021. While illuminating the topic of the event, he mentioned that banks averaged Rs. 4 billion and disbursed Rs.

1.6 billion on a weekly basis. He underlined the need to maintain and accelerate this momentum. There are six banks that have paid out over Rs. Each 2 billion and seven banks have paid out over Rs. 1 billion each within 9 months under MPMG.

Applications received (amount)

Approved applications (amount)

300

263

120

109

250

212

100

84

billion

200

185

billion

80

72

150

154

59

131

60

111

49

Rs

Rs

39

100

40

71

57

22nd

50

41

20th

16

11th

0

30-Mar-21

April 27-21

25-May-21

30-Jun-21

31-07-21

31-Aug-21

30-September-21

31-Oct-21

30-Nov-21

20-Dec-21

0

30-Mar-21

April 27-21

25-May-21

30-Jun-21

31-07-21

31-Aug-21

30-September-21

31-Oct-21

30-Nov-21

20-Dec-21

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External relationships Department

Payout (amount)

35

32

30th

29

25th

billion

20th

17th

fifteen

Rs

11.5

10

7.7

5

5.2

1.0

1.6

0.6

0

25-May-21

30-Jun-21

31-07-21

31-Aug-21

30-September-21

31-Oct-21

30-Mar-21

April 27-21

30-Nov-21

20-Dec-21

The governor said MPMG’s growth has been attributed to various measures taken by the government, SBP and NAPHDA to create a favorable environment for the banking industry to enter the untapped housing and construction finance market. He cites the simplification of complex procedures, the significant reduction in documentation requirements, the development of a model for assessing informal income and an effective redress mechanism as examples of this support. Communication initiatives like Mera Pakistan Mera Ghar Meri Kahani – a series of testimonials from MPMG beneficiaries – have also helped encourage others to apply.

Prior to this, Governor SBP briefed the Prime Minister on developments in housing and construction finance at a meeting of the National Coordinating Committee on Housing, Construction and Development (NCCHCD). He recalled that in July 2020, in line with the government’s vision to stimulate economic activity, the SBP mandated banks to increase their housing and construction finance to at least 5 percent of their domestic private sector advances by December 31, 2021 . Five banks have already achieved their targets for December 2021. The banks with the best performance in this regard were Albaraka Bank, followed by Meezan Bank and Dubai Islamic Bank. He emphasized that banks have been lending Rs since December 17, 2021. Rs. 173 billion more than its funding as of June 30, 2020, which is 117 percent growth since June 2020. He praised Bank Al Habib, the National Bank and Bank Alfalah for the significant increase in their housing and construction finance portfolios from June 2020 to the present day.

In conclusion, Governor Baqir expressed confidence from SBP that the banking industry will continue to rapidly improve its performance in order to meet the Mera Pakistan Mera Ghar and home finance targets.

Speeches were also given at the MPMG event by Senator Shaukat Tareen, Prime Minister’s Advisor on Finance and Revenue, and Lt Gen Anwar Ali Hyder, Chairman of NAPHDA. The financial advisor reaffirmed the government’s commitment to MPMG and assured the banks that they would provide the necessary support. The NAPHA chairman urged banks to show commitment in providing home finance to individuals in the NAPHDA LDA City and Peri Urban projects.

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