ISLAMABAD: The government on Monday finalised arrangements for the launch of Pakistan Mortgage Refinance Company Limited and Exim Bank of Pakistan with authorised paid-up capital of Rs10 billion each.

Finance Minister Ishaq Dar presided over two separate meetings for the launch of two institutions.

Pakistan Mortgage Refinance Company Limited (PMRCL) is envisaged to be formed with the objective to promote, develop and improve housing finance market to increase accessibility and availability of affordable housing finance with greater participation by banks and financial institutions.

The refinancing facilities will be for long, medium and short term period to banks and financial institutions against their existing conventional and Islamic housing finance portfolios.

It was decided that the new company must provide all forms of technical advice, consultancy support and assistance to banks and financial institutions in conventional and Islamic housing finance and products along with developing and promoting international best practices for housing finance in Pakistan.

The company will have an authorised capital of Rs10bn with Rs6bn as paid-up capital. The government will release its share of two per cent of equity commitments immediately.

Deputy Governor State Bank of Pakistan Saeed Ahmad will be its first chairman till the new board is formed and selects its chairman under due process.

The company’s head office will be located in Karachi. The equity will be contributed by the government of Pakistan, National Bank of Pakistan, Askari Bank, Habib Bank Limited, United Bank Limited, Bank Alfalah, House Building Finance Corporation Limited, Bank Al- Habib, Allied Bank Limited, and contributions are expected from International Finance Corporation and Asian Development Bank.

A separate meeting also reviewed arrangements for launching the Exim Bank, announced as a budgetary initiative for fiscal year 2014-15.

Secretary of Finance briefed the meeting that all spade-work had been completed. To start with, the bank would be launched as a development financial institution with authorized capital of Rs10bn.

The minister directed that a comprehensive business plan be submitted for his consideration before launching of the bank.

He said the founding of this bank meant to promote export re-finance facilities and support the small and medium scale enterprises. The government seriously wanted that the bank should help promote exports and managed professionally, Dar emphasized.

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