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Minister of Finance and Revenue, Senator Muhammad Aurangzeb. Photo: APP
ISLAMABAD:
The Economic Coordination Committee (ECC) of the cabinet on Friday approved the revised ‘Mera Ghar Mera Aashiana’ (MGMA) – Mortgage Finance for Low-Cost Housing scheme and sanctioned key infrastructure grants.
The ministerial committee meeting was chaired by Federal Minister of Finance and Revenue, Senator Muhammad Aurangzeb, according to a press release issued by the Ministry of Finance.
According to the press release, the ECC has considered a summary submitted by the Ministry of Housing and Public Works seeking approval of the revised features of the ‘Mera Ghar Mera Aashiana (MGMA)’ – mortgage financing program for low-cost housing.
The committee was informed that since its launch, the program has received strong public response, with over 10,594 loan applications received and disbursements underway.
After careful consideration, the ECC approved the revised system specifications. These include increasing the loan limit up to Rs 10 million, widening the size parameters of eligible housing units, introducing a uniform price of 5% for the end user, changing the housing finance targets over a four-year horizon, further implementation through the State Bank of Pakistan (SBP) mechanism and adjusting already disbursed loans to the revised rate of 5% for ensure uniformity.
The committee emphasized that grant payments will be aligned with actual disbursements and integrated into annual budget allocations.
The revised framework aims to expand access to affordable housing finance, stimulate construction activity, generate jobs and promote sustainable homeownership through a balanced risk-sharing and mark-up subsidy model.
The ECC also reviewed and approved a summary submitted by the Ministry of Interior and Narcotics Control regarding the transfer of Rs 7,289 million as Supplementary Technical Grant (TSG) for the ICT component of the project titled ‘National Program for Improvement of Command Areas in Barani Areas of Pakistan’, aimed at enhancing agricultural productivity in rain-fed areas.
Further, the ECC approved a summary submitted by the Railway Division for grant of Supplementary Technical Grant (TSG) amounting to Rs 6.61 billion for Thar Coal Rail Connectivity Project as budget cover.
The project aims to facilitate the transportation of local coal to power plants and industrial sectors, thereby supporting energy security and reducing dependence on imported fuels.
The meeting was attended by Federal Minister for Investment Qaiser Ahmed Sheikh, who participated virtually, as well as federal secretaries and senior officials of relevant ministries, divisions and regulatory agencies.
