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Business Recorder
4 days ago
- Business
- Business Recorder
Don't forget the bells and whistles
As massive as it was only a few years ago, the Naya Pakistan Housing Program (NPHP) is but a footnote in history. Literally. At least on the SBP website, it is tucked behind a small banner at the very bottom of the the SBP did not completely remove it from existenceis a positive sign and we support that! The Shahbaz government now has plans to piggyback off of the scheme with a fresh and improved housing finance scheme, all with Rs5 billion earmarked for a mark-up it can fall prey to bureaucracy and poor policy planning, here are a few lessons that MPMG 2.0, or whatever else the government might call it, must consider. One: ensure that the subsidy is well-targeted. One of the biggest design flawsof MPMG was its lack of transparency and focus. Though seemingly the scheme was designed for low-income segment (or households), that term was never defined, either directly or indirectly. The defined criteria were not based on household incomes but on the value of the property. The subsidy was lottery-based, rather than need-based. The policy cannot be vague about who is the target audience and must explicitly define who qualifies as low-income and ensure subsidies go to them. For informal income borrowers, alternative credit models must be adopted to evaluate risk. Two: be targeted, data-backed and transparent. It is entirely possible that an internal impact assessment of MPMG was conducted and circulated among policymakers, but if such a report exists, not even a summary was made SBP published superficial data that showed the loan amounts being requested every month, the disbursements made, and the approval rate of these loans, but beyond that, no data was published for public consumption. To date, the public still does not know how many new borrowers were served by the scheme. Based on rough estimates, for an average loan size between Rs2 million and Rs10 million, the scheme served between 10,000 and 50,000 borrowers. That range is far too broad to draw any meaningful conclusions about the scheme or its should have published borrower profiles, loan-to-value ratios, default rates, and other key indicators. Policies cannot be evaluated, improved, or externally reviewed without reliable, disaggregated data on loan beneficiaries, loan types, housing stock, and credit performance. This kind of transparency would allow for real-time adjustments to the scheme. If SBP has been collecting such data, future iterations can evaluate repayment performance and credit quality to gauge sustainability. For instance, comparing default rates between subsidized and market-rate loans can help calibrate subsidy size, loan terms, or borrower screening criteria. Three: aim for genuine additionality and lasting be honest: before and after MPMG, housing finance hasn't been a real priority for banks. If the scheme is not adding new borrowers and new housing stock, beyond historical trends, it is not a successful scheme. The scheme should help expand access to housing finance and prepare banks to build their housing finance portfolios instead of just rechannelling credit flows temporarily. More so, mortgage finance should lead to additional housing supply, not just transactions in existing housing. There is evidence that many loans granted under MPMG were supporting already-built projects under construction amnesty, and not new the PM plans to shut down the Naya Pakistan Housing Development Authority, this is precisely where a strong regulator could ensure that subsidies are tied to new housing projects and that their performance is regularly monitored. If the growth in housing finance is purely subsidy driven, it will vanish when funding dries up. That is what happened after June 2022 when the MPMG was unceremoniously halted. The real question is: how are banks building capacity to sustain mortgage finance without public money? That's a hard question, but an essential one for the SBP to ask. Four: ensure the project has institutional backing, rather than a political one. The SBP has to take ownership for a subsidy and housing scheme to have meaningful impact. The current Rs5 billion mark-up subsidy can serve as a pilot, with clearly defined metrics, timelines, and evaluation benchmarks. This can then be scaled up into a lasting program with genuine additionality in mind. The fact is, while the previous mark-up scheme invites valid criticism and debate over its effectiveness, FY26 presents the SBP with a fresh opportunity to craft a more impactful, data-driven housing finance initiative—one with clear, long-term goals that analysts like us can truly sink our teeth into.
Business Recorder
05-06-2025
- Business
- Business Recorder
Better news
At its current pace, cement offtake this year is likely to end up roughly at the same level as last year. Domestic dispatches are estimated to have declined by around 6 percent, but total dispatches have been buoyed by a 24–25 percent rise in exports. Despite muted local demand, cement companies have remained largely profitable, thanks to strong domestic pricing and controlled coal costs. The upcoming budget, however, could bring even better news. After quietly dissolving former Prime Minister Imran Khan's flagship initiative—the Naya Pakistan Housing Development Authority (NAPHDA)—Prime Minister Shehbaz Sharif now appears poised to introduce a housing finance subsidy, echoing Mera Pakistan Mera Ghar (MPMG) scheme in structure, but likely introduced with less fanfare. In its four years of operation, NAPHDA had planned 156,000 housing units, of which only about 58,000 were completed. Of these, 31,000 were financed through MPMG. Given the original target of 5 million homes, progress has been disappointing. It's worth noting, however, that many of the projects under NAPHDA were not initiated by the authority itself but were pre-existing schemes absorbed into its portfolio. The current administration does not appear keen on launching a massive, centrally managed housing initiative—which, considering NAPHDA's bureaucratic pitfalls and Pakistan's fiscal constraints is probably wise. Instead, the government is planning a modest, targeted mark-up subsidy for 200,000 homes. That's a small and manageable start. Banks already have mechanisms in place to assess mortgage applications, owing to their experience with MPMG. According to BR estimates—since the SBP did not disclose borrower figures—approximately 78,000 mortgages were issued between 2020 and 2022, tied to Rs100 billion in loan disbursements (read: 'Now you see it, now you don't'). With limited data, it's difficult to assess the full impact of the scheme. But if Sharif's plan delivers financing for 200,000 homes through the formal banking channel, it would be more than double of what the MPMG ever achieved. And double is better, right? One cannot possible say. The fact is, whether a subsidy scheme will be impactful and add valuable output to the housing market or not, is a question for another day or another political era.. We will have to wait for the Budget 2026 announcement to see the exact modalities of the subsidy—who the scheme will target, and how it will be executed. What's certain increase housing credit will spur demand for construction materials, and cement stands to gain the most which the industry will undoubtedly welcome.
Korea Herald
27-03-2025
- Entertainment
- Korea Herald
Singer on President Obama's playlist coming to Seoul
Indie singer-songwriter Faye Webster to perform at Musinsa Garage in July American indie singer-songwriter Faye Webster will hold her first concert in Korea. On Thursday, concert promoter MPMG announced that Webster would perform on July 23 at Musinsa Garage in Mapo-gu, Seoul. Webster began singing at 14 and released her debut album at 16, showcasing her talent at an early age. Over the years, she has crafted a distinctive sound that blends indie pop, alternative country and R&B. Her 2021 album "I Know I'm Funny Haha" reached the top 10 on the US Billboard Folk Chart. Notably, the album's "Better Distractions" was included in former US President Barack Obama's list of favorite songs that year. Webster continues to explore various genres and push creative boundaries. In March 2024, she released the collaborative single "Lego Ring" with rapper Lil Yachty, her high school friend. She is also gaining recognition as a live performer, securing spots in the lineups of major global music festivals, including the 2024 Coachella Valley Music and Arts Festival and the 2025 Fuji Rock Festival. Tickets for her Seoul concert will go on sale at 10 a.m., April 2 on Interpark Ticket.
Korea Herald
11-02-2025
- Entertainment
- Korea Herald
Libertines to hold first-ever Korean concert
British rock band to play in Seoul in April British rock band The Libertines will hold their first concert in Korea on April 9 at 8 p.m. at Yes24 Live Hall in Gwangjin-gu, Seoul, as announced by event organizer MPMG. Emerging as an influential band in the postpunk revival movement of the early 2000s, The Libertines debuted in 2002 with the single "What a Waster / I Get Along." Their first full-length album, "Up the Bracket," released later that year, earning them recognition for best new band at the NME Awards and propelling them to widespread fame. Their second album, "The Libertines," released in 2004, was also well received by both critics and the public. However, the band's sudden breakup that year left many fans disappointed. A decade later in 2014, The Libertines reunited for a comeback and released third album "Anthems for Doomed Youth" in 2015 -- 11 years after their previous release. Last year, the group once again demonstrated their enduring influence by topping the UK Albums Chart for the first time in 20 years with their fourth album, "All Quiet on the Eastern Esplanade." Presale tickets for The Libertines' Seoul concert will be available from Feb. 17-18, exclusively through pop music platform Ualive. General ticket sales begin on Feb. 18 at 6 p.m. via Yes24 Ticket and Interpark Ticket.
