Growing capital market funding for housing requires developing adequate legal and regulatory infrastructures within the context of specific countries. In order to develop Pakistan’s housing finance systems and capital markets, the World Bank Group has provided upstream support in the form of creating mortgage laws and facilitating securitization.
The State Bank of Pakistan (SBP) is the country’s central promoter of housing market reform. The International Finance Corporation (IFC) has played a major role in Pakistan’s housing reform, including recommending that the country establishes a Mortgage Refinance Company (MRC), and identifying constraints that would be to be removed before capital market funding would be possible. IFC has offered additional policy recommendations such as forming a real estate investment trust law, rationalizing transaction costs, establishing a land registration system, and streamlining large-scale developer finance.
Source:
World Bank Group. (2016) World Bank Group Support to Housing Finance. International Bank for Reconstruction and Development / The World Bank.
Link: https://ieg.worldbankgroup.org/evaluations/world-bank-group-support-housing-finance