The Economic Coordination Committee (ECC) of Pakistan has approved significant revisions to the Mera Ghar Mera Aashiana (MGMA) low-cost housing finance program, marking a major step toward expanding access to affordable home ownership and stimulating construction activity nationwide. The committee, chaired by Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb at the Finance Division, endorsed raising the maximum loan limit under the scheme to Rs10 million while establishing a uniform 5% end-user pricing structure for all beneficiaries.
The revisions are intended to make the program more inclusive and financially predictable for borrowers, offering standardized borrowing costs across a wider range of housing projects. Eligible housing size parameters have also been expanded, enabling broader participation in the low-cost housing segment. Additionally, the ECC has set scaled housing finance targets for the next four years, ensuring a structured expansion of the program over time. Existing loans that had been disbursed prior to the revision will be adjusted to the new 5% rate, guaranteeing consistency and equity for current participants.
Since its launch, the MGMA scheme has received over 10,594 loan applications, with disbursements actively underway through the State Bank of Pakistan’s financing mechanism. The increase in the loan ceiling is expected to attract a wider pool of applicants while supporting growth in the housing and construction sectors. Analysts note that the construction sector not only drives employment and industrial demand for materials such as cement and steel but also has multiplier effects on the broader economy by stimulating allied industries and service sectors.
The revised MGMA framework incorporates a balanced risk-sharing structure alongside mark-up subsidies to ensure sustainability in the long-term delivery of affordable housing. Subsidy payments are linked to actual loan disbursements and accommodated within annual fiscal allocations, reflecting a fiscally responsible approach to expanding mortgage financing. Government officials emphasized that the adjustments aim to promote home ownership, enhance financial inclusion, and generate jobs through expanded construction activity.
In addition to housing finance measures, the ECC approved a Technical Supplementary Grant (TSG) of Rs7.289 million for the ICT component of the National Program for Enhancing Command Areas in Barani Areas of Pakistan. This allocation targets improved agricultural productivity in rain-fed regions, supporting farmers and rural communities. The committee also sanctioned a Rs6.61 billion TSG for the Thar Coal Rail Connectivity Project as requested by the Railways Division. This initiative is designed to facilitate the transportation of domestic coal to power plants and industrial users, contributing to energy security while reducing reliance on imported fuels.
The meeting included participation from Federal Minister for Investment Qaiser Ahmed Sheikh, who joined virtually, alongside federal secretaries and senior officials from relevant ministries, divisions, and regulatory bodies. With these decisions, the ECC has taken steps to simultaneously support affordable housing, construction sector growth, rural agricultural productivity, and strategic energy infrastructure, reflecting a coordinated approach to Pakistan’s economic development priorities.
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