ECC Approves 5% Mark-Up Housing Finance Scheme

The Economic Coordination Committee (ECC) of the Cabinet has formally approved significant revisions to the Mera Ghar Mera Aashiana (MGMA) low-cost housing finance scheme, enhancing its scope and affordability. The maximum financing limit has been increased to Rs10 million, while a uniform end-user mark-up rate of 5 percent has been introduced to replace the previous 8 percent structure.

The decision was taken during a meeting chaired by the Federal Minister for Finance at the Finance Division, where a summary submitted by the Ministry of Housing and Works proposed amendments to the existing mortgage financing framework. The ECC endorsed an expansion in eligibility criteria, allowing financing for residential units up to 10 marlas and apartments up to 1,500 square feet. Additionally, the committee approved a four-year target aimed at facilitating financing for approximately 500,000 housing units nationwide.

To ensure equitable treatment among beneficiaries, the ECC directed that previously disbursed loans under the scheme be recalibrated to reflect the revised 5 percent mark-up rate. The implementation mechanism will continue to operate through the State Bank of Pakistan (SBP) in coordination with participating financial institutions.

The committee also sanctioned year-wise subsidy projections tied to the disbursement target of 50,000 housing units by June 30, 2026. It underscored that subsidy releases would remain contingent upon actual loan disbursements and must be accommodated within approved annual fiscal allocations to maintain budgetary discipline.

Data presented by SBP revealed that financial institutions have received 10,594 applications seeking cumulative financing of Rs32.288 billion. To date, 344 loans amounting to Rs810 million have been disbursed under the scheme.

In a separate decision, the ECC approved a Technical Supplementary Grant (TSG) of Rs7.289 million for the ICT component of the “National Program for Enhancing Command Areas in Barani Areas of Pakistan,” aimed at strengthening agricultural productivity in rain-fed regions.