The Economic Coordination Committee (ECC) has approved sweeping revisions to the government’s low-cost housing finance scheme, including raising the loan ceiling to Rs10 million and introducing a uniform 5% end-user rate, while also clearing key infrastructure-related technical grants.
The meeting of the ECC, chaired by Finance Minister Senator Muhammad Aurangzeb at the Finance Division, reviewed multiple summaries from various ministries covering housing finance and strategic infrastructure support.
The Committee approved revised features of the “Mera Ghar Mera Aashiana (MGMA)” mortgage financing scheme, originally launched to facilitate access to affordable housing. Officials informed the ECC that the scheme has received strong public response since inception, with more than 10,594 loan applications submitted and disbursements already underway.
Under the revised framework, the loan limit has been enhanced up to Rs10 million, housing size eligibility parameters have been expanded, and a uniform 5% end-user pricing has been introduced. The scheme will continue to operate through the State Bank of Pakistan’s existing implementation mechanism, while housing finance targets have been scaled over a four-year horizon to broaden outreach.
In addition, the ECC approved adjustment of already disbursed loans to the revised 5% rate to ensure uniformity across beneficiaries. The Committee directed that subsidy payments be aligned strictly with actual disbursements and accommodated within annual fiscal allocations to maintain budgetary discipline.
Officials said the revamped structure is designed to widen access to affordable housing finance, stimulate construction-sector activity, generate employment, and promote sustainable home ownership through a balanced risk-sharing and mark-up subsidy model.
Separately, the ECC approved a Technical Supplementary Grant (TSG) of Rs7.289 million for the Islamabad Capital Territory component of the “National Program for Enhancing Command Areas in Barani Areas of Pakistan,” aimed at improving agricultural productivity in rain-fed regions.
The Committee also cleared a Rs6.61 billion TSG for the Thar Coal Rail Connectivity Project, providing budgetary cover to facilitate transportation of indigenous coal to power plants and industrial units. The project is expected to strengthen energy security by supporting local fuel utilization and reducing reliance on imported energy sources.
The meeting was attended by Federal Minister for Investment Qaiser Ahmed Sheikh, who joined virtually, along with federal secretaries and senior officials from relevant ministries and divisions.
