Development Finance Group (DFG) Executive Director Samar Hasnain has stated that the government would shortly relaunch the Mera Pakistan Mera Ghar Scheme with enhanced financial features.
The newly established scheme’s formal payment will begin on August 31.
He also claimed that the government was developing a strategy to make the scheme more feasible and sustainable so that the central bank can support it.
He added that the new changes would be made in response to macroeconomic trends, which have shifted fast in recent months.
He also emphasized the following reasons for the policy shift:
- The government gave a 7% mortgage subsidy when banks received money at the Karachi Interbank Offered Rate (KIBOR) + 4% market rate. However, as the KIBOR reached new highs, the government was obliged to offer a 12% discount to property buyers, which was costly to sustain.
- A minimal amount of money was made available for mortgages since the banks’ liquidity reserves weren’t sufficient for the 15 to 20-year strategy.
- Negotiations over loan tranches backed by the International Monetary Fund (IMF) forced the government to reevaluate and restructure the scheme’s financial foundation in order to lessen the burden on foreign reserves.
Additionally, Hasnain said that the government understood the MPMG program’s connections to more than 40 industries, suggesting that an increase in construction will lead to a stronger economy.
He said that the government would start disbursing money to loan applicants whose applications had been accepted but not yet processed.
