ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet approved a markup subsidy scheme worth Rs72 billion to support the construction and purchase of 50,000 low-cost houses during the current financial year.
The housing finance scheme, designed in consultation with the Ministry of Finance, State Bank of Pakistan (SBP), and Ministry of Planning, will help first-time homeowners with valid CNICs who do not already own a house. They can now access long-term housing loans for up to 20 years.
Under the scheme, borrowers will get subsidized fixed interest rates — 5% for loans up to Rs2 million and 8% for loans between Rs2 million and Rs3.5 million — for the first 10 years.
After that, market rates will apply. The scheme covers houses up to 5 Marla or flats up to 1,360 square feet. Loans will follow a 90:10 ratio (90% loan, 10% equity) with no extra charges for processing or early payments.
The plan also includes a 10% risk-sharing facility for banks and financial institutions like commercial banks, Islamic banks, microfinance banks, and the House Building Finance Corporation (HBFC).
The total cost of the scheme over 20 years is estimated at Rs71.98 billion, including Rs61.98 billion for interest subsidies and Rs10 billion for risk coverage. For the year 2025-26, Rs3.93 billion will be required.
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The initiative is part of the government’s goal to make housing affordable for low-income families and to involve the private sector by reducing financial risks. The SBP has supported the scheme’s structure to ensure fair access and compliance with set rules.
The Pakistan Housing Authority Foundation (PHAF) will run the scheme for the government. A separate budget will be allocated for managing and promoting the program. The exact amount will be decided later in consultation with PHAF and the Ministry of Information.
To increase public interest, the Ministry has suggested renaming the scheme. Proposed titles include:
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Apna Ghar – Roshan Mustaqbil
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Mera Khwab – Mera Aashiyana
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Mera Ghar – Meri Jannat
The ECC meeting, chaired by Finance Minister Senator Muhammad Aurangzeb, also discussed other major topics, including industrial growth, environmental policies, skills training, and telecom sector issues.
The ECC approved a report by the Ministry of Commerce on improving the competitiveness of the steel sector under the National Tariff Policy 2025–30. The policy aims to reduce production costs and promote exports.
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The committee also allowed the Ministry of Commerce to file an appeal in the Supreme Court against the Lahore High Court’s decision in the Ghani Glass case. The ministry argued that discounted gas and RLNG tariffs for export sectors have already been withdrawn and should not apply.
In another important move, the ECC approved Pakistan’s Green Taxonomy, proposed by the Ministry of Climate Change. The taxonomy will help attract investment in eco-friendly projects and promote sustainable growth.
To support skill development, the ECC approved a Rs1 billion government guarantee for launching the Pakistan Skill Impact Bond (PSIB), suggested by the Ministry of Federal Education. The committee advised the ministry to shift toward a public-private partnership model and rely less on government guarantees.
The ECC also asked the ministry to create a nationwide housing database in coordination with federal and provincial bodies. This would help ensure better targeting and implementation of housing schemes.
Lastly, the ECC was briefed on ghee and cooking oil prices by the Ministry of Industries and Production. While the ministry assured that stock levels were stable, the committee expressed concern that international price drops were not being fully passed on to local consumers.
