Karachi, September 18, 2007—IFC, a member
of the World Bank Group, and the State Bank of Pakistan, formally launched
a housing finance training program in Pakistan last week. The meeting was
attended by senior executives from over 30 financial institutions in the
country. The training, which aims to improve local expertise in the sector,
will be developed by the Canada Mortgage and Housing Corporation.
The first stage consists of a skills gap analysis. A questionnaire for
assessing training needs has been sent to local financial institutions.
This month, the project team will meet with representatives from the institutions
that provide mortgage services to review their operations. They will
also meet with financial institutions that intend to enter the market in
The Canada Mortgage and Housing Corporation will use IFC’s Mortgage Toolkit
to develop the training modules, which will be tailored to the Pakistani
market and based on the needs assessment and meetings with the financial
institutions. The company’s internationally certified trainers will deliver
the training to key staff.
“Strengthening the housing market is very important for Pakistan’s economic
development. This training program will improve local expertise in
housing finance and help expand the market,” said Deputy Governor, SBP,
Mr. Mansur-ur-Rehman Khan.
“The fact that most commercial banks and mortgage-lending financial institutions
in Pakistan are represented at the launch underscores the importance of
this training program to the local market. We expect it to help build
the capacity of mortgage-lending institutions to increase access to affordable
housing finance,” said Farhan Fasihuddin, IFC Program Manager for housing
finance in the Middle East and North Africa.
IFC promotes housing finance in Pakistan through its advisory services
facility in the Middle East and North Africa – PEP-MENA. It has
developed a comprehensive business plan for the House Building Finance
Corporation, the largest and oldest mortgage lender in the country, and
is now supporting the company’s restructuring. IFC is also working with
the State Bank of Pakistan’s housing advisory group to help simplify the
business environment and create a mortgage refinance company that will
provide long-term funding at fixed interest rates.
IFC, a member of the World Bank Group, fosters sustainable economic growth
in developing countries by financing private sector investment, mobilizing
private capital in local and international financial markets, and providing
advisory and risk mitigation services to businesses and governments. IFC’s
vision is that poor people have the opportunity to escape poverty and improve
their lives. In FY07, IFC committed $8.2 billion and mobilized an additional
$3.9 billion through loan participations and structured finance for 299
investments in 69 developing countries. IFC also provided advisory services
in 97 countries. For more information, visit www.ifc.org.
About State Bank of Pakistan
The State Bank of Pakistan is the central bank of Pakistan. It performs
both traditional and developmental bank functions to achieve macroeconomic
goals. Its primary traditional functions include issuing notes, regulating
and supervising the financial system, last-resort lending, serving the
government, and conducting monetary policy. Secondary functions include
managing public debt and foreign exchange, advising the government on policy
matters, and maintaining close relationships with international financial
institutions. The State Bank’s nontraditional or promotional functions
include developing a financial framework, institutionalizing savings and
investment, and providing training facilities to bankers and credit to
priority sectors. The bank has also been playing an active part in Islamic
finance. For more information, visit www.sbp.gov.pk.