Pakistan’s Economic Coordination Committee (ECC) has approved major changes to the Mera Ghar Mera Aashiana low cost housing finance scheme.
The maximum loan limit has been increased from Rs3.5 million to Rs10 million.
Mera Ghar Mera Aashiana scheme
The revised scheme is expected to support about 500,000 housing units over the next four years. It will give families more access to larger homes and modern apartments.
Under the updated guidelines, detached houses up to 10 marlas, which is about 2,720 sq ft, and flats up to 1,500 sq ft can qualify for financing.
The markup subsidy has been set to a fixed end-user rate of 5 per cent.
The State Bank of Pakistan (SBP) will continue to manage the scheme using its risk sharing and markup subsidy framework.
The decision addresses long-standing challenges in Pakistan’s housing sector. The previous Rs3.5 million loan cap had limited the home ownership in cities like Karachi, Lahore, and Islamabad.
Banks have reported strong demand for the scheme. They have received over 10,500 applications worth more than Rs32 billion.
The ECC has reviewed a summary from the Ministry of Housing and Works seeking approval for the revised features of the MGMA mortgage financing scheme.
Since its launch, the scheme has received a strong public response. More than 10,594 loan applications have been submitted, and disbursements for it are also already underway.
After review, the ECC approved the updated framework. It includes the increased loan limit, larger eligible housing sizes, a fixed 5 per cent end user rate, scaling targets for four years, implementation through the State Bank, and adjustment of previously disbursed loans to the new rate.
The Committee said subsidy payments will match actual disbursements and will be covered in annual fiscal allocations.
The revamped scheme aims to expand access to affordable housing finance, boost construction, create jobs, and promote sustainable homeownership.
The ECC meeting was attended by Federal Minister for Investment Qaiser Ahmed Sheikh, federal secretaries, and some other senior officials.
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