Assuming 10% growth in total private sector loans by Dec 2021, the banking sector is expected to allocate an additional Rs23 billion for the housing and construction segment. PHOTO: REUTERSThe incentives announced by Prime Minister Imran Khan to support the construction sector are yielding desired results as the industrial sector has reported business expansion. To minimise the impact of Covid-19, the government announced a package for the construction sector in April 2020 and later incorporated it into the Finance Bill 2020. Since April 2020 to date, the cement sector has recorded a modest rally at the stock market and generated a return of 60% on the KSE-100 index, according to Arif Habib Limited’s report titled “Pakistan’s cement sector”. Currently, Rs235 billion has been set aside for the sector following SBP’s directive to allocate 5% of credit flow for the housing and construction sector.

Source: The Express Tribune November 10, 2020 03:22 UTC