State Bank of Pakistan has started policy for financing of low-cost housing.

The Bank says as the housing sector serves as an engine of economic growth, it has the potential to generate employment, increase productivity, raise standard of living and alleviate poverty.

The formulation of policy for low-cost housing is an attempt to resolve issues faced by the mortgage industry with the help of relevant stakeholders.

The Bank says this policy has been formulated keeping in view international best practices and local market conditions focusing on regulatory incentives, risk mitigation mechanism for financial institutions and mechanism to address the issue of affordability for low-income borrowers.