The federal government has announced major changes to the Mera Ghar Mera Aashiana (MGMA) low-cost housing scheme. The maximum loan limit has been increased to Rs10 million. The mark-up rate has been fixed at 5 percent, down from 8 percent.
The decision was made by the Economic Coordination Committee (ECC) of the cabinet. The meeting was chaired by Federal Finance Minister Senator Muhammad Aurangzeb at the Finance Division in Islamabad.
The revised scheme aims to finance around 500,000 housing units over the next four years. Eligible properties include houses up to 10 marlas (272 square feet) and flats up to 1,500 square feet. The scheme also sets uniform pricing for end-users at 5 percent.
Since its launch, the scheme has received more than 10,500 applications. So far, 344 loans totaling Rs810 million have been disbursed. The government confirmed that loans already given will be adjusted to the new 5 percent rate to ensure consistency.
The ECC highlighted that subsidy payments will correspond with actual disbursements and remain within yearly fiscal allocations. Officials said the revised scheme is designed to expand access to affordable housing, generate employment, and stimulate the construction sector. It will also support sustainable home ownership through a risk-sharing and mark-up subsidy model.
Alongside the housing scheme, the ECC approved funding for other critical projects. Rs7.289 million was allocated for the ICT component of the National Programme for Enhancing Command Areas in Barani Regions. This project aims to improve agricultural productivity in rain-fed areas.
Additionally, Rs6.61 billion was approved for the Thar coal rail connectivity project. The project will transport domestic coal to power plants and industrial sectors, reducing reliance on imported fuel and strengthening energy security.
