MPMG housing finance scheme: Govt in process of reshaping: Miftah

KARACHI: Minister for Finance and Revenue, Dr Miftah Ismail has said that the government is in the process of reshaping the Mera Pakistan Mera Ghar (MPMG) housing finance scheme to make it more widespread in Pakistan.

After a meeting with the presidents and CEOs different banks at the State Bank of Pakistan (SBP) in Karachi, he said on twitter that the government would continue with the MPMG housing loan scheme for all those whose loan applications have been approved and who have paid advances (bayana). “We will also ask the banks to reduce the interest rate charged”.

He said that the federal government was still in the process of reshaping the scheme to make it cheaper and more widespread. This revised scheme will be rolled out soon, he added.

Sources said that Dr Miftah Ismail also chaired a meeting of the presidents and CEOs of the banks for deliberation on challenges pertaining to Islamic banking.

The meeting was also attended by acting governor State Bank of Pakistan (SBP) Dr Murtaza Syed, the renowned Islamic Scholar Mufti Taqi Usmani and other officials of SBP. During the meeting, participants discussed current issues and challenges of Islamic banking and its way forward.

During the meeting, the finance minister said that the federal government and the SBP have already initiated a consultation process with the relevant stakeholders to ensure implementation of FSC’s decision without impacting financial stability.

Govt suspends Mera Pakistan Mera Ghar Scheme for two months

He informed that on the directives of the Prime Minister, a taskforce has been constituted to propose a way forward and make a concrete plan for elimination of Riba from the country in the light of FSC decision. He also asked the banks to submit proposals and suggestions for promotion of Islamic banks and elimination of Riba.

During the meeting, Mufti Taqi Usmani urged the State Bank of Pakistan and banks to withdraw the case from the Supreme Court. “The banks must approach the same forum i.e. Federal Shariat Court (FSC) for the guidance on the Riba judgment,” he added.

It may be mentioned here that the Federal Shariat Court has announced a Judgement in the ‘Riba Case’ on April 28, 2022. The FSC in its verdict declared the prevailing interest-based banking system as against the Shariah. The court also asked the federal and provincial governments for amendments to relevant laws and said that the country’s banking system should be free of interest by December, 2027.

However, the federal government and the State Bank of Pakistan welcomed the judgement. However, SBP and some other banks also moved to the Supreme Court to seek guidance in FSC judgment in the Riba (interest) case in terms of implementation of some of the complex and challenging issues.

Copyright Business Recorder, 2022