Islamabad: The Economic Coordination Committee (ECC) of the Cabinet has approved major revisions to the Mera Ghar Mera Aashiana (MGMA) low-cost housing finance scheme, increasing the maximum loan limit to PKR 10 million and fixing a uniform end-user mark-up rate at 5 percent.
The decision was taken at an ECC meeting chaired by the finance minister at the Finance Division. The committee considered a summary submitted by the Ministry of Housing and Works, seeking changes to the existing mortgage financing framework to improve access to affordable housing.
Under the revised scheme, the eligible housing size has been expanded to include houses up to 10 marlas and flats measuring up to 1,500 square feet. The ECC also approved a four-year target to support financing for around 500,000 housing units.
The mark-up rate, which previously stood at 8 percent, has been reduced and unified at 5 percent for all beneficiaries. To ensure uniformity, the ECC directed that loans already disbursed under the scheme be adjusted to the revised rate. The scheme will continue to be implemented through the State Bank of Pakistan.
The committee further approved year-wise subsidy estimates, linked to the disbursement of 50,000 housing units by June 30, 2026. It stressed that subsidy payments would be aligned with actual loan disbursements and managed within the available annual fiscal allocations.
According to data shared by the central bank with the ECC, banks have so far received 10,594 applications under the scheme, seeking financing worth PKR 32.288 billion. However, only 344 loans amounting to PKR 810 million have been disbursed to date.
In a separate decision, the ECC also approved a technical supplementary grant of PKR 7.289 million for the ICT component of the National Program for Enhancing Command Areas in Barani Areas of Pakistan, aimed at improving agricultural productivity in rain-fed regions.
Samra Zulfiqar, a real estate analyst at Zameen.com, is passionate about finding projects that offer buyers the best returns. Her keen insights spotlight the market’s most promising opportunities.
