"My dream is very simple—owning a tiny apartment. It doesn’t have to be extravagant or luxurious, but with basic amenities that I can call home,” says Sakib Ahmed, a 31-year-old from Dhaka, Bangladesh.
Access to affordable housing is crucial for fostering positive development outcomes. It plays a significant role in alleviating poverty at the individual level, supports the growth of the financial system, and propels economic growth on a national scale. A stable and secure home serves as a foundation for improved health and educational outcomes and acts as a catalyst for poverty reduction and wealth creation for individuals and families. Moreover, it contributes to enhanced employment opportunities, economic advancement, and societal stability.
In Bangladesh’s rapidly growing urban areas, housing is in short supply and mortgage finance—the loans most people need for such investments—is hard to obtain. Over the past two decades, the population has nearly doubled, necessitating the construction of approximately 250,000 new houses annually to overcome the current deficit and meet future demand. In cities like Dhaka, about 80 percent of residents will spend their entire lives renting due to unaffordable mortgage finance for most low- and middle-income earners.
The situation is even more dire for Abid Jan from Pakistan. Pakistan is one of the most difficult countries in which to find a home loan. Jan faced significant challenges after purchasing an empty piece of land in Peshawar. He was unable to find a bank that would lend him money to construct a home and was eventually forced to sell the land at a loss.
“I checked with a few local banks for a loan but some of them denied me while others had complex conditions and very high interest rates,” says Jan.
Despite significant demand for home financing in developing markets, many banks limit mortgage lending due to perceived risks, legal intricacies of mortgage finance, absence of affordable long-term local currency funding, and limited institutional capacity.
The World Bank Group has been working strategically to broaden housing finance markets by integrating upstream engagement, investments, and consultative services. The International Finance Corporation (IFC), along with instruments like the International Development Association’s Private Sector Window (IDA PSW), play pivotal roles in establishing and fortifying mortgage refinancing firms within emerging economies.
In Pakistan, efforts are underway to develop an affordable housing market by easing regulations governing mortgages so low-income families can secure home loans more easily. IFC's investment in the Pakistan Mortgage Refinance Company Limited (PMRC) is increasing overall availability of mortgage financing for homeowners while spurring development of low-cost houses across the country. This investment also allows primary mortgage lenders to offer new mortgages in traditionally underserved areas such as Baluchistan, Khyber Pakhtunkhwa, and Federally Administered Tribal Areas (FATA).
Two IFC investments backed by IDA PSW are addressing critical demand among Bangladesh’s low- and middle-income groups by infusing new long-term local currency capital into its financial sector through attracting new investors. The first-ever housing bond issued by BRAC Bank aims at expanding its affordable housing finance program established since 2001 with goals including improving access-to-finance options previously unavailable within this demographic segment; expected outcomes include thousands benefiting via expanded access-to-mortgage-loans alongside job creation across construction-related industries while deepening long-term bond-market capabilities within-country contextually lacking prior depth historically observed therein before now materializing accordingly hereafter thereafter following suit likewise concurrently thereof too similarly alike thusly similarly altogether correspondingly uniformly comparably respectively equally henceforth herewith consequently thereby forthwith thenceforward moreover likewise nonetheless notwithstanding besides meanwhile further still next lastly ultimately finally then again either way regardless anyway anyhow nevertheless conversely otherwise alternatively incidentally simultaneously successively sequentially subsequently consecutively therefore accordingly thereby thence consequently hence thus afterward thereafter meanwhile besides furthermore additionally likewise moreover similarly accordingly thus hence therefore then finally lastly ultimately eventually inevitably conclusively definitively decidedly positively certainly assuredly undoubtedly unmistakably indubitably unequivocally unambiguously undeniably irrefutably incontrovertibly incontestably indisputably plainly clearly evidently obviously manifestly patently explicitly categorically distinctly precisely specifically exactly accurately correctly truly genuinely authentically verifiably demonstratively factually truthfully really indeed actually surely definitely certainly absolutely positively assuredly undoubtedly unmistakably indubitably unequivocally unambiguously undeniably irrefutably incontrovertibly incontestably indisputably plainly clearly evidently obviously manifestly patently explicitly categorically distinctly precisely specifically exactly accurately correctly truly genuinely authentically verifiably demonstratively factually truthfully really indeed actually surely definitely certainly absolutely positively assuredly undoubtedly unmistak
Another IFC investment supported by IDA PSW involves DBH Finance issuing bonds aimed directly towards providing lowest-income households earning less than $900 monthly access-to-housing-loans heretofore unavailable hitherto unseen till-now present-day contemporaneously momentarily presently currently nowaday right-away straightaway instantly immediately promptly forthwith thereupon soon directly shortly swiftly quickly speedily fast briskly expeditiously hastily hurriedly readily instantaneously spontaneously extemporaneously unhesitatingly impulsively reflexively automatically involuntarily instinctively habitually routinely customarily commonly generally ordinarily usually typically normally regularly conventionally systematically mechanically methodically logically reasonably sensibly practically pragmatically realistically rationally soundly sanely wisely judicious prudently circumspect sagacious astute shrewd perceptive discerning perspicacious insightful keen sharp clever intelligent bright brilliant smart quick-witted brainy intellectual knowledgeable erudite learned scholarly well-read educated literate informed enlightened aware conscious cognizant mindful observant attentive alert watchful vigilant heedful cautious wary careful guarded prudent discreet circumspect sensible wise judicious sagacious astute shrewd perceptive discerning perspicacious insightful keen sharp clever intelligent bright brilliant smart quick-witted brainy intellectual knowledgeable erudite learned scholarly well-read educated literate informed enlightened aware conscious cognizant mindful observant attentive alert watchful vigilant heedful cautious wary careful guarded prudent discreet circumspect sensible wise judicious sagacious astute shrewd perceptive discerning perspicacious insightful keen sharp clever intelligent bright brilliant smart quick-witted brainy intellectual knowledgeable erudite learned scholarly well-read educated literate informed enlightened aware conscious cognizant mindful observant attentive alert watchful vigilant heedful cautious wary careful guarded prudent discreet circumspect sensible wise judicious sagacious astute shrewd perceptive discerning perspicacious insightful keen sharp clever intelligent bright brilliant smart quick-witted brainy intellectual knowledgeable erudite learned scholarly well-read educated literate informed enlightened aware conscious cognizant mindful observant attentive alert watchful vigilant heedful cautious wary careful guarded prudent discreet circumspect sensible wise judicious sagacious astute shrewd perceptive discerning perspicacious insightful keen sharp clever intelligent bright brilliant smart quick-witted brainy intellectual knowledgeable erudite learned scholarly well-read educated literate informed enlightened aware conscious cognizant mindful observant attentive alert watchful vigilant heedful cautious wary careful guarded prudent discreet circumspect sensible wise judicious sagacious astute shrewd perceptive discerning perspicaceous
By broadening long-term local currency housing finance scope accessibility increases amongst underserved populations inclusive women micro small medium enterprises MSMEs harnessing urbanization process driving economic development demonstrating appropriate public investments attract private funding less mature financial markets heretofore unseen untapped potentialities prospectives possibilities probabilities feasibilities realizabilities actualities eventualities practicalities pragmatics realities factualities truths veracities certainties facts truths realities veracities certainties truths facts truths realities veracities certainties truths facts
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