ISLAMABAD: With the aim to promote housing finance market with greater participation by banks and financial institutions, the federal government is set to launch Pakistan Mortgage Refinance Company Limited and Exim Bank of Pakistan with authorised paid-up capital of Rs10 billion each.
Federal Finance Minister Ishaq Dar, presiding over two separate meetings, finalised arrangements for the launch of these institutions.
It was decided in the meeting that the Pakistan Mortgage Refinance Company Limited must provide all forms of technical advice, consultancy support and assistance to banks and financial institutions in conventional and Islamic housing finance and products along with developing and promoting international best practices for housing finance in Pakistan.
Deputy Governor State Bank of Pakistan Saeed Ahmad will be its first chairman till the new board is formed and selects its chairman under due process.The company’s head office will be located in Karachi. The equity will be contributed by the government of Pakistan, National Bank of Pakistan, Askari Bank, Habib Bank Limited, United Bank Limited, Bank Alfalah, House Building Finance Corporation Limited, Bank Al- Habib, Allied Bank Limited, and contributions are expected from International Finance Corporation and Asian Development Bank.
Meanwhile in a separate meeting, Ishaq Dar also reviewed arrangements for launching the Exim Bank, announced as a budgetary initiative for fiscal year 2014-15.
Secretary of Finance briefed the meeting that all spade-work had been completed. To start with, the bank would be launched as a development financial institution with authorized capital of Rs10b. The minister directed that a comprehensive business plan be submitted for his consideration before launching of the bank.
