ISLAMABAD: In a significant move to promote affordable housing and strengthen energy infrastructure, the Economic Coordination Committee (ECC), led by Finance Minister Muhammad Aurangzeb, gave its approval on Friday for an enhanced low-cost housing scheme along with vital infrastructure grants. This decision also included raising loan ceilings and sanctioning a technical supplementary grant specifically aimed at advancing the Thar coal railway project.
The Finance Ministry highlighted that the housing initiative has already attracted over 10,594 loan applications, with disbursements actively underway for many of the approved requests. This reflects a growing demand for affordable residential units across the country, underscoring the government’s commitment to addressing the housing shortage faced by low and middle-income families.
Under the revised framework of the scheme, the maximum loan amount available to each applicant has been increased substantially to Rs10 million. Furthermore, the dimensions of the residential units eligible under the program have been expanded to accommodate larger family sizes and improve living standards. A uniform interest rate of 5 percent will now be applied across all loans, including those that were approved prior to this adjustment. These previously sanctioned loans will be recalibrated to reflect the new interest rate, ensuring consistency and fairness for all beneficiaries.
Additionally, subsidy payments will now be directly linked to the actual amounts disbursed, with adjustments made within the constraints of the annual fiscal subsidy envelope. This approach aims to maintain fiscal discipline while maximizing the impact of government support. The ECC reaffirmed that the implementation of the housing scheme will continue to follow the established procedures set forth by the State Bank of Pakistan, ensuring transparency and regulatory compliance throughout the process.
Alongside the housing scheme enhancements, the ECC also approved a technical supplementary grant amounting to Rs6.61 billion for the Thar coal railway project. This critical infrastructure initiative is designed to facilitate the efficient transportation of locally mined coal to power plants and industrial units, thereby reducing reliance on imported fuels and supporting the country’s energy security objectives.
The committee emphasized that these approvals form part of a broader strategy to stimulate economic growth by promoting affordable housing solutions and developing indigenous energy resources. By addressing these key sectors, the government aims to create jobs, improve living conditions, and strengthen the overall economic framework of Pakistan.
