ECC Approves Sweeping Revisions to Mera Ghar Mera Aashiana
In a significant move to stimulate the housing sector and promote homeownership, Pakistan’s Economic Coordination Committee (ECC) has approved major revisions to the flagship Mera Ghar Mera Aashiana (MGMA) low-cost housing mortgage scheme. The most notable change is an increase in the maximum loan limit to Rs10 million, a substantial rise aimed at broadening access to affordable financing.
Key Revisions and Financial Relief
Chaired by Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb, the ECC meeting standardized the mark-up rate for the scheme at a fixed 5%, a reduction from the previous 8%. This move is designed to provide significant financial relief to applicants and make home loans more accessible. The committee also approved targets to finance approximately 500,000 housing units over the next four years.
The revised parameters expand eligible housing to include units up to 10 marlas (approximately 272 square feet) or flats up to 1,500 square feet. The ECC stressed that subsidy payments would be strictly aligned with actual loan disbursements and managed within the government’s annual fiscal allocations.
Strong Public Response and Implementation
Officials reported a strong public response to the scheme since its launch. Banks have received over 10,594 loan applications, seeking a total of Rs32.288 billion. To date, 344 applications amounting to Rs810 million have been successfully disbursed. The State Bank of Pakistan (SBP) will continue to oversee the scheme’s implementation mechanism.
A critical provision ensures that loans already disbursed under the old terms will be adjusted to the new, lower 5% interest rate to maintain uniformity across all beneficiaries. The revised framework is aimed at stimulating construction activity, generating employment, and promoting sustainable home ownership through a balanced risk-sharing model.
Additional ECC Approvals
In other decisions, the ECC approved a technical supplementary grant of Rs7.289 million for an agricultural productivity project in rain-fed regions. It also approved a Rs6.61 billion grant for the Thar coal rail connectivity project, intended to facilitate the transport of indigenous coal to power plants and bolster energy security.
The approvals underscore the government’s multi-pronged approach to economic stimulus, focusing on key sectors like housing, agriculture, and energy infrastructure.
