Incentive Data

Banks to increase credit for financing the housing & construction sector.

1.     With a view to promote housing and construction of buildings (Residential and Non-Residential) in Pakistan, each commercial bank shall ensure that the financing for housing and construction of buildings (Residential and Non-Residential) shall be at least 5 percent of their domestic private sector credit by December, 2021.

2.     Banks are advised to gear up their infrastructure and capacity to ensure compliance of meeting these targets. Accordingly, each bank is required to develop a concrete action plan with detailed measures and their timelines to achieve its housing and construction finance targets. This action plan should contain breakdown of overall targets into quarterly targets, development of suitable products, launching of media campaigns, development of internal technology, capacity building of staff, and other actions needed to ensure the 5 percent target is met. Banks are advised to submit their concrete action plans to this department within 15 working days from date of issuance of this Circular. Banks will be required to report data of approvals and disbursements against these targets on monthly basis starting from September 2020.

3.     SBP will keep a close monitoring of progress on the mandatory targets. Non-compliance in meeting the targets shall attract punitive action under the relevant provisions of the Banking Companies Ordinance, 1962.


IH&SMEFD Circular No. 10 of 2020 (