ISLAMABAD: In a significant move to promote affordable housing across Pakistan, the government has sanctioned an increase in the maximum loan amount available under the revamped “Mera Ghar Mera Aashiana (MGMA)” scheme. This initiative, designed to facilitate mortgage financing for low-cost housing, received a green light from the Economic Coordination Committee (ECC) of the Cabinet during a recent session.
The meeting, presided over by Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb, reviewed a comprehensive summary submitted by the Ministry of Housing and Works. The ministry sought approval for updated features aimed at making the scheme more accessible and impactful for prospective homeowners. Since its inception, the MGMA scheme has witnessed a robust response from the public, with over 10,594 loan applications submitted and disbursement processes actively underway, reflecting strong demand for affordable housing finance.
After careful deliberation, the ECC endorsed several key enhancements to the program. Foremost among these is the increase in the loan limit, which has now been raised to Rs10 million. This adjustment is expected to accommodate a broader range of housing needs and enable beneficiaries to access larger financing amounts. Additionally, the eligible housing size parameters have been expanded to include more diverse property options, allowing greater flexibility for applicants.
Another notable change is the introduction of a standardized 5% end-user pricing rate, which aims to simplify the cost structure for borrowers. The committee also approved a strategic plan to scale up housing finance targets progressively over the next four years. Importantly, the implementation of the scheme will continue to be managed through the State Bank of Pakistan, ensuring streamlined oversight and operational consistency. To maintain fairness, loans that have already been disbursed will be adjusted to align with the new 5% rate, promoting uniformity across all beneficiaries.
The ECC stressed that subsidy disbursements will be closely tied to actual loan releases and will be managed within the framework of the government’s annual fiscal budget. This approach is designed to maintain financial discipline while expanding access to affordable housing. The revised scheme framework aims not only to increase home ownership but also to stimulate the construction sector, generate employment opportunities, and foster sustainable development through a balanced model of risk-sharing and mark-up subsidies.
In addition to the housing finance updates, the committee reviewed and approved a separate proposal from the Ministry of Interior & Narcotics Control. This involved the allocation of Rs7.289 million 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.” This project focuses on boosting agricultural productivity in rain-fed regions, highlighting the government’s broader commitment to rural development and resource optimization.
Overall, these decisions reflect the government’s ongoing efforts to address critical socio-economic challenges by facilitating affordable housing and improving agricultural infrastructure, thereby contributing to inclusive growth and improved living standards across the country.
