ECC extends loan limit to Rs10m for Mera Ghar Mera Aashiana applicants

• Rs810m disbursed on 344 applications to date.
• Mark-up rate standardised at 5%, down from 8%.
• About 500,000 houses to be financed in 4 years.

ISLAMABAD: The federal cabinet's Economic Coordination Committee (ECC) has approved major revisions to the Mera Ghar Mera Aashiana (MGMA) low-cost housing mortgage scheme, increasing the maximum loan limit to Rs10 million.

During its meeting, the committee also standardised the mark-up rate at 5%, reducing it from the previous 8%, The News reported on Saturday.

According to an official announcement, the ECC met on Friday at the Finance Division under the chairmanship of Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb.

Several changes to the original features of the scheme were considered and approved, including increasing the loan limit to up to Rs10 million, targeting the financing of approximately 500,000 housing units over the next four years, and housing units up to 10 marlas /272 sq ft or flat up to 1500 sq ft, and setting a fixed end-user pricing of 5%.

The year-wise estimate of subsidy payments against the disbursement of 50,000 housing units till June 30, 2026 was approved by the ECC.

Top official sources told The News after the ECC meeting that the forum had approved the scheme in July 2025, approved the scheme of mark-up subsidy and risk sharing scheme for affordable housing finance, which was later ratified by the federal cabinet.

The State Bank of Pakistan (SBP) notified the approved features of the scheme. Banks have received over 10,594 applications for a loan amount of Rs32.288 billion, whereas 344 loan applications amounting to Rs810m have been disbursed.

Prime Minister Shehbaz Sharif directed that the scheme's loan and portfolio sizes shall align with the principle approval.

The ECC considered a summary submitted by the Ministry of Housing and Works seeking approval of revised features of Mera Ghar Mera Aashiana - mortgage financing for a low-cost housing scheme.

The committee was informed that since its launch, the scheme has generated a 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 the 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 committee stressed 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.

The ECC also considered and approved a summary submitted by the Ministry of Interior & Narcotics Control regarding the transfer of Rs7.289m as a technical supplementary grant (TSG) for the ICT component of the project titled "National Programme 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 the provision of a TSG amounting to Rs6.61bn for the Thar coal rail connectivity project as budgetary cover.

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