The Economic Coordination Committee (ECC) of the Cabinet met at the Finance Division under the chairmanship of Senator Muhammad Aurangzeb, Federal Minister for Finance and Revenue.
The ECC considered a summary submitted by the Ministry of Housing and Works seeking approval of revised features of the “Mera Ghar Mera Aashiana (MGMA)” Mortgage Financing for Low-Cost Housing scheme.
The Committee was informed that the scheme, originally approved by the ECC on July 25, 2025, and subsequently ratified by the Federal Cabinet, is being implemented through the State Bank of Pakistan (SBP) under a Mark-Up Subsidy and Risk-Sharing framework for affordable housing finance. Since its launch, the scheme has received encouraging public response. As of February 13, 2026, banks have received over 10,594 loan applications amounting to approximately Rs. 32.288 billion. Of these, 344 loans worth around Rs. 810 million have been disbursed, reflecting strong demand and the need for further scaling up.
The ECC was apprised that, following directions from the Prime Minister’s Office and subsequent consultations with key stakeholders — including SBP, the Finance Division, commercial banks, and the Pakistan Banks’ Association — several revisions were proposed to enhance the scheme’s outreach and impact.
After detailed deliberations, the ECC approved the revised features, including:
Enhancement of the maximum loan limit up to Rs. 10 million;
Targeted financing of approximately 500,000 housing units over the next four years;
Expansion of eligible housing parameters to cover housing units up to 10 marlas (2,720 square feet) and flats up to 1,500 square feet;
Introduction of a uniform fixed end-user mark-up rate of 5 percent;
Adjustment of already disbursed loans from 8 percent to 5 percent to ensure uniformity and fairness among borrowers;
Continuation of the existing implementation mechanism for mark-up subsidy and risk-sharing components through SBP.
The Committee was further informed that year-wise subsidy estimates have been prepared, including projections linked to the disbursement of 50,000 housing units up to June 30, 2026. Subsidy payments will be aligned with actual loan disbursements and accommodated within annual fiscal allocations to ensure prudent fiscal management.
The revised framework is designed to expand access to affordable housing finance, stimulate construction and allied industries, generate employment opportunities, and promote sustainable home ownership through a balanced risk-sharing and targeted subsidy model.
In a separate agenda item, the ECC approved a summary submitted by the Ministry of Interior & Narcotics Control for the transfer of Rs7.289 million as a Technical Supplementary Grant (TSG) for the ICT component of the project titled “National Program for Enhancing Command Areas in Barani Areas of Pakistan,” aimed at improving agricultural productivity in rain-fed regions.
The ECC also approved a summary from the Railways Division for the provision of a Technical Supplementary Grant amounting to Rs6.61 billion as budgetary cover for the Thar Coal Rail Connectivity Project. The initiative seeks to facilitate the transportation of indigenous coal to power plants and industrial units, thereby strengthening energy security and reducing reliance on imported fuels.
The meeting was attended by Qaiser Ahmed Sheikh, Federal Minister for Investment, who joined virtually, along with federal secretaries and senior officials from the relevant ministries, divisions, and regulatory authorities.