The Economic Coordination Committee (ECC) of the Cabinet on Thursday approved revised features of the government’s low-cost housing finance initiative and sanctioned key infrastructure related technical supplementary grants during a meeting held at the Finance Division.
The meeting was chaired by Muhammad Aurangzeb, Federal Minister for Finance and Revenue.
The ECC reviewed a summary submitted by the Ministry of Housing and Works seeking approval of revised parameters of the “Mera Ghar Mera Aashiana (MGMA)” mortgage financing scheme for low-cost housing. Officials informed the committee that since its launch, the scheme has received strong public response, with more than 10,594 loan applications submitted and disbursements already underway.
After deliberations, the committee approved several revisions, including enhancement of the loan ceiling up to Rs. 10 million, expansion in eligible housing size limits, and introduction of a uniform 5 percent end-user pricing structure. The ECC also endorsed scaling targets for housing finance over a four-year period and continuation of implementation through the State Bank of Pakistan mechanism. Additionally, already disbursed loans will be adjusted to the revised 5 percent rate to ensure uniformity among beneficiaries.
The committee emphasized that subsidy payments under the scheme will be aligned with actual loan disbursements and accommodated within annual fiscal allocations. The revised framework is designed to expand access to affordable housing finance, stimulate construction activity, generate employment opportunities, and promote sustainable home ownership through a balanced risk-sharing and mark-up subsidy model.
In a separate decision, the ECC approved a summary from the Ministry of Interior and Narcotics Control for the transfer of Rs. 7.289 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.” The initiative aims to improve agricultural productivity in rain-fed regions.
The committee also approved a summary submitted by the Railways Division for provision of a Technical Supplementary Grant amounting to Rs. 6.61 billion for the Thar Coal Rail Connectivity Project as budgetary cover. The project seeks to facilitate transportation of indigenous coal to power plants and industrial units, supporting energy security and reducing reliance on imported fuels.
The meeting was attended by Qaiser Ahmed Sheikh, Federal Minister for Investment, who joined virtually, along with federal secretaries and senior officials from relevant ministries, divisions, and regulatory bodies.
