The Bank of Punjab (BOP) and Reall Limited UK, have signed a Memorandum of Understanding (MoU), to promote and ensure affordable housing in Pakistan. The Director of Operations and Investment of Reall Limited, Mr. Patrick Domingos-Tembawa, and Group Head of Retail and Priority Sectors Lending of the Bank of Punjab, Mr. Asif Riaz, signed the MoU.
The MoU enables Reall Limited and the Bank of Punjab to provide financing to developers and builders working on affordable housing projects in Pakistan. This finance will expedite the entire process and ensure the timely availability of low-cost houses across Pakistan. Potential buyers with low incomes will be provided loans and subsidized rates for the housing units as a part of the State Bank of Pakistan’s Mark up Subsidy Scheme for Low-Cost Housing, synonymous with the Government of Pakistan’s mission to provide low-cost homes for the poorer segments of the society.
“This alliance will go a long way in promoting the efforts of SBP and NAPHDA/GoP in extending mortgage financing for low-cost housing to the much-needed borrowers in the informal sector. This collaboration will not only help in achieving the affordable housing inventory requirement but also gaining expertise in this sector from the best in the world,” stated President, and CEO of the Bank of Punjab,” Mr. Zafar Masud.
“It is a great privilege for Reall to work with the Bank of Punjab to develop the affordable housing ecosystem in Pakistan. Together we will prove the viability of lending to the informal sector and deliver sustainable affordable housing at scale in a way that is deeply impactful and genuinely commercially viable,” expressed Emma Ahmed, Head of Operations at Reall Limited.
She further stated, “This will transform the affordable housing market for the better in Pakistan while setting out a blueprint for other markets across the globe. Together, we can unlock a huge untapped market opportunity for the private sector and improve the life chances of millions of people on low incomes.”
Reall Limited is an innovator and investor in affordable homes and aims to provide affordable and sustainable homes for 100 million people across Africa and Asia by 2030. It is funded by Swedish International Development Agency (SIDA) and UK Aid. Reall has already invested a whopping amount of 20 million pounds in Pakistan’s housing sector since 2014. However, it first started working in Pakistan in 1994. It has sponsored housing projects in Lahore, Peshawar, Multan, and Faisalabad through Ansaar Management Company (AMC).
Reall Limted is currently working with a Karachi-based green build-tech start-up called ModulusTech, and a Lahore based firm called EPL, that promotes high-quality low-cost housing.