The Securities and Exchange Commission of Pakistan (SECP) had licensed three new Housing Finance Companies (HFCs) during the fiscal year that ended 30 June 2021.
The SECP believes that a revitalized HFC sector will contribute to catering to the huge demand for affordable housing finance in Pakistan.
The newly licensed HFCs include Pakistan Housing Finance Company Limited, Trellis Housing Finance Company Limited, and Asaan Khar Finance Limited. Prior to this, there had been no licensed HFC during the last decade.
While being cognizant of the huge gap in the affordable housing finance space, the SECP collaborated with the Pakistan Mortgage Refinance Company and the World Bank Group to lead a comprehensive awareness campaign to highlight the opportunities for potential new entrants to tap into this vastly underserved market. A number of webinars were conducted to impart information on the regulatory framework and legal requirements to form the HFCs.
The SECP guided the prospective investors with the available funding mechanism for housing finance companies and assisted them in preparing workable HFC business models. It also supports the proposal to include the HFCs in the Government’s Markup Subsidy Scheme for housing finance.
These initiatives translated into three new entrants into the housing finance market that are expected to commence operations this year.