On Thursday, the State Bank of Pakistan (SBP) gave banks instructions to halt all additional MPMG disbursements.
Additionally, the central bank gave banks instructions to suspend new payments made under the Kamyab Jawan Youth Entrepreneurship Scheme of the Prime Minister (PMKJ-YES).
In light of recent changes in the macroeconomic environment, the Pakistani government is considering reviewing or revising the characteristics of the subject scheme. In light of this, banks, DFIs, and MFBs are advised to postpone additional MPMG distributions from July 1 through August 31, 2022, according to a circular from the central bank.
However, the central bank stated that banks, DFIs, and MFBs may release the remaining disbursement under MPMG in circumstances where partial distributions have already been made till June 30, 2022.
The government is considering examining or changing the features of PMKJ-YES in light of recent changes to the macroeconomic scenario, the central bank stated in another circular.
As a result, it encouraged banks acting as executing agency under the aforementioned programme to postpone new disbursements from July 1 through July 15, 2022.
Numerous studies indicate that Pakistan has a housing shortage of about 12 million units, with demand growing steadily as a result of population increase.
The prior administration started the programme. The State Bank of Pakistan (SBP) and all commercial banks worked hard to develop a home financing plan that would be accessible for those who did not already own a home.
According to the SBP’s most recent figures, commercial banks in Pakistan have approved 212 billion rupees and have so far distributed 85 billion rupees to clients all around the nation as part of the Mera Pakistan Mera Ghar programme.
The programme also aimed to boost employment and economic growth in the more than 40 related industries that make up the construction sector. According to the Economic Survey, 7.71% of Pakistan’s employed work force is employed in the construction sector, which contributed 2.5% to GDP.