ISLAMABAD: In a significant move to promote affordable housing, the government has sanctioned an increase in the maximum loan amount available under the revamped “Mera Ghar Mera Aashiana (MGMA)” scheme, which focuses on mortgage financing for low-cost homes. This decision came after thorough deliberations by the Economic Coordination Committee (ECC) of the Cabinet, which approved the enhanced features designed to broaden access to housing finance for the public.
The meeting, led by Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb, reviewed a detailed proposal submitted by the Ministry of Housing and Works. The proposal outlined the need to revise the scheme’s parameters to better meet the growing demand and to make homeownership more attainable for a larger segment of the population. Since its inception, the MGMA scheme has witnessed a robust response, with over 10,594 loan applications received and the disbursement process actively underway, reflecting the public’s eagerness to benefit from this initiative.
One of the most notable changes approved by the ECC is the increase in the loan limit, which has now been raised to Rs10 million. This enhancement is expected to accommodate a wider range of housing needs and allow beneficiaries to access larger financing amounts. Additionally, the committee agreed to expand the eligible housing size parameters, enabling applicants to consider bigger homes under the scheme. A uniform end-user markup rate of 5% has also been introduced to simplify the pricing structure and ensure consistency across all loans.
Furthermore, the ECC laid out a strategic plan to scale housing finance targets progressively over the next four years. The implementation of the scheme will continue to be managed through the State Bank of Pakistan’s established mechanisms, ensuring transparency and efficiency. To maintain fairness, the committee decided that loans already disbursed will be adjusted to reflect the new 5% markup rate, thereby standardizing the cost for all participants.
The committee also highlighted that subsidy payments will be carefully aligned with actual loan disbursements and will be managed within the government’s annual fiscal budget allocations. This approach aims to sustain the scheme’s financial viability while maximizing its impact. The revised framework is designed not only to increase access to affordable housing finance but also to stimulate the construction sector, generate employment opportunities, and encourage sustainable homeownership through a balanced model that shares risks and provides mark-up subsidies.
In addition to the housing scheme updates, the ECC approved a supplementary grant of Rs7.289 million to the Ministry of Interior & Narcotics Control. This funding is allocated as a Technical Supplementary Grant (TSG) for the Islamabad Capital Territory (ICT) component of the “National Program for Enhancing Command Areas in Barani Areas of Pakistan.” The program focuses on improving agricultural productivity in rain-fed regions, which is crucial for supporting rural livelihoods and food security.
Overall, these decisions reflect the government’s commitment to addressing critical housing and agricultural challenges, fostering economic growth, and improving the quality of life for citizens across the country.
