ECC approves revised low-cost housing scheme and key infrastructure grants

The Economic Coordination Committee (ECC) approved on Friday a low-cost housing scheme that had received over 10,594 loan applications since its launch, according to a Finance Division statement.

The ECC of the Cabinet met at the Finance Division under the chairmanship of the Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb.

“The ECC considered a summary submitted by the Ministry of Housing and Works seeking approval of revised features of the “Mera Ghar Mera Aashiana (MGMA)” - Mortgage Financing for Low-Cost Housing scheme.

Read more: Pakistan launches ‘Mera Ghar – Mera Ashiana’ to boost affordable housing

“The committee was informed that since its launch, the scheme has generated strong public response, with over 10,594 loan applications received and disbursements underway.

“After due consideration, the ECC approved the revised features of the scheme, including enhancement of the loan limit up to Rs10 million, expansion of eligible housing size parameters, introduction of a uniform 5% end-user pricing, scaling targets for housing finance over a four-year horizon, continuation of implementation through the State Bank of Pakistan mechanism, and adjustment of already disbursed loans to the revised 5% rate to ensure uniformity,” the Finance Division said.

The committee emphasised that subsidy payments would be aligned with actual disbursements and accommodated within annual fiscal allocations.

“The revised framework is aimed at expanding access to affordable housing finance, stimulating construction activity, generating employment, and promoting sustainable home ownership through a balanced risk-sharing and mark-up subsidy model.”

Meanwhile, the ECC also considered and approved a summary submitted by the Ministry of Interior & Narcotics Control regarding the transfer of Rs7.289 million as a Technical Supplementary Grant (TSG) for the ICT component of the project titled “National Program for Enhancing Command Areas in Barani Areas of Pakistan,” aimed at strengthening agricultural productivity in rain-fed regions.

Further, the ECC approved a summary submitted by the Railways Division for provision of a TSG amounting to Rs6.61 billion for the Thar Coal Rail Connectivity Project as budgetary cover.

“The project is intended to facilitate transportation of indigenous coal to power plants and industrial sectors, thereby supporting energy security and reducing reliance on imported fuels.”

The meeting was attended by Federal Minister for Investment Qaiser Ahmed Sheikh, who participated virtually, along with federal secretaries and senior officials from the concerned ministries, divisions and regulatory bodies.