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 the green light on Friday to an enhanced low-cost housing scheme alongside vital infrastructure grants. This decision also includes a substantial increase in loan ceilings and the approval of a technical supplementary grant 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 approved cases. This surge in applications underscores the growing demand for affordable residential units across the country, reflecting the government’s commitment to addressing Pakistan’s housing deficit.
Under the revamped scheme, the maximum loan amount available to each applicant has been raised to Rs10 million, allowing beneficiaries to access larger financing options. Additionally, the dimensions of the residential units eligible under the program have been expanded to accommodate more diverse housing needs. A uniform interest rate of 5 percent will now apply to all loans, including those previously approved, which will be recalibrated to this new rate. Furthermore, subsidy payments will be directly linked to the actual loan disbursements and adjusted within the constraints of the annual fiscal subsidy envelope, ensuring fiscal responsibility while supporting borrowers.
The ECC emphasized that the implementation of this housing scheme will continue to follow the established procedures set forth by the State Bank of Pakistan, ensuring regulatory oversight and smooth execution. This approach aims to maintain transparency and efficiency in loan processing and subsidy allocation.
In parallel, the committee sanctioned a technical supplementary grant amounting to Rs6.61 billion for the Thar coal railway project. This critical infrastructure initiative is designed to facilitate the transportation of locally mined coal to power plants and industrial units, thereby enhancing domestic energy production and reducing reliance on imported fuels. The project is a cornerstone in Pakistan’s broader strategy to harness indigenous energy resources and stimulate industrial growth.
These approvals by the ECC form part of a wider government effort to stimulate economic development by addressing two key sectors: affordable housing and energy. By expanding access to housing finance and investing in energy infrastructure, the government aims to create jobs, improve living standards, and support sustainable economic progress across the country.
