ISLAMABAD: In a significant move to promote affordable housing across the country, the government has sanctioned an increase in the maximum loan amount available under the “Mera Ghar Mera Aashiana (MGMA)” scheme. This initiative, designed to provide mortgage financing for low-cost housing, has seen its loan ceiling raised to Rs10 million. The decision was finalized during a meeting of the Economic Coordination Committee (ECC) of the Cabinet, which convened under the leadership of Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb.
The Ministry of Housing and Works had submitted a detailed proposal seeking approval for revised features of the MGMA scheme, highlighting the need to enhance the loan limit and adjust other parameters to better serve the public. Since its inception, the scheme has garnered a robust response from citizens, with over 10,594 loan applications submitted and disbursements actively progressing. This enthusiastic uptake underscores the growing demand for accessible housing finance in Pakistan.
After thorough deliberation, the ECC endorsed several key amendments aimed at expanding the scheme’s reach and effectiveness. Besides increasing the loan limit to Rs10 million, the committee approved the broadening of eligible housing size criteria, allowing more individuals to qualify for financing. Additionally, a uniform end-user pricing rate of 5% was introduced to standardize borrowing costs across the board. The committee also laid out ambitious targets for housing finance growth over the next four years, signaling a long-term commitment to the sector.
Implementation of the scheme will continue to be managed through the State Bank of Pakistan’s established mechanisms, ensuring streamlined and transparent processing of loans. Furthermore, the ECC mandated that loans already disbursed under previous terms be adjusted to reflect the new 5% rate, promoting consistency and fairness among all beneficiaries. The committee stressed that subsidy payments associated with the scheme will be closely monitored and aligned with actual loan disbursements, with all expenditures carefully planned within the government’s annual fiscal budget.
The revised framework is expected to have a multifaceted impact: not only will it increase access to affordable housing finance for a broader segment of the population, but it will also invigorate the construction industry, create employment opportunities, and encourage sustainable homeownership. The scheme’s balanced approach to risk-sharing and mark-up subsidies aims to foster a healthy housing finance ecosystem that benefits both borrowers and lenders.
In a related development, the ECC also approved a financial grant 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, overseen by the Ministry of Interior & Narcotics Control, focuses on improving agricultural productivity in rain-fed regions, thereby supporting rural development and food security alongside urban housing initiatives.
