The Economic Coordination Committee (ECC) of the federal cabinet has recently approved significant amendments to the Mera Ghar Mera Aashiana (MGMA) mortgage financing initiative, designed to support affordable housing across Pakistan. In a meeting held at the Finance Division, chaired by Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb, the committee decided to raise the maximum loan amount available under the scheme to Rs10 million. This move marks a substantial increase from previous limits and is expected to broaden access to housing finance for a larger segment of the population.
Alongside the increase in loan ceiling, the ECC also standardized the mark-up rate at a reduced level of 5 percent, down from the earlier 8 percent. This reduction in financing costs is aimed at making homeownership more attainable for low- and middle-income families. The committee’s decision reflects the government’s ongoing commitment to stimulate the housing sector while ensuring affordability remains a priority.
The revised scheme now targets the financing of approximately 500,000 housing units over the next four years. Eligible properties under the program include houses up to 10 marlas (approximately 272 square yards) or flats with a maximum size of 1,500 square feet. This expansion in size parameters allows more prospective homeowners to benefit from the scheme, accommodating a wider range of housing needs across urban and semi-urban areas.
In addition to these changes, the ECC approved a year-wise subsidy payment plan aligned with the disbursement of 50,000 housing units by June 30, 2026. This structured financial support is intended to ensure the sustainability of the program while managing fiscal responsibility. The subsidy will be disbursed in accordance with actual loan distribution, maintaining a balance between government support and market-driven financing.
Since its inception, the Mera Ghar Mera Aashiana scheme has received an encouraging response from the public. Banks have processed over 10,594 loan applications, amounting to Rs32.288 billion, with 344 loans totaling Rs810 million already disbursed. Prime Minister Shehbaz Sharif has emphasized the importance of aligning the scheme’s loan and portfolio sizes with the approved framework to maximize its impact and ensure effective implementation.
The ECC’s approval followed a detailed review of a summary submitted by the Ministry of Housing and Works, which outlined the need for revised features to enhance the scheme’s reach and efficiency. The committee endorsed the continuation of implementation through the State Bank of Pakistan’s mechanisms, ensuring regulatory oversight and smooth operational flow. Furthermore, loans already disbursed will be adjusted to reflect the new 5 percent mark-up rate, promoting uniformity and fairness among beneficiaries.
Beyond housing, the ECC also addressed other key developmental projects during the meeting. It approved a technical supplementary grant of Rs7.289 million for the Islamabad Capital Territory component of the “National Programme for Enhancing Command Areas in Barani Areas of Pakistan.” This initiative aims to boost agricultural productivity in rain-fed regions, which are critical for the country’s food security and rural livelihoods.
Additionally, the committee sanctioned a substantial grant of Rs6.61 billion for the Thar coal rail connectivity project. This funding will support the transportation infrastructure necessary to move indigenous coal to power plants and industrial sectors, thereby enhancing energy security and reducing dependence on imported fuels. The project is a strategic step towards harnessing local resources to meet Pakistan’s growing energy demands.
Overall, the ECC’s decisions reflect a multifaceted approach to economic development, combining housing finance reforms with investments in agriculture and energy infrastructure. These measures are expected to generate employment, stimulate construction activity, and contribute to sustainable growth across various sectors of the economy.
