The Economic Coordination Committee (ECC) has approved significant enhancements to the ‘Mera Ghar Mera Aashiana’ low-cost housing mortgage scheme. The maximum loan limit has been increased to Rs10 million, and the mark-up rate has been standardized at a reduced 5%, down from the previous 8%.

During its meeting, chaired by Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb, the ECC considered and approved several key revisions. These include a substantial increase in the loan limit, targeting the financing of approximately 500,000 housing units over the next four years. The scheme now accommodates housing units up to 10 marlas (272 sq ft) or flats up to 1500 sq ft, with a fixed end-user pricing of 5%.

The ECC also approved the year-wise estimate for subsidy payments linked to the disbursement of 50,000 housing units until June 30, 2026. Officials indicated that the scheme, initially approved in July 2025 and ratified by the federal cabinet, has seen considerable public interest. The State Bank of Pakistan has been notified of the updated features, and banks have already received over 10,594 applications totaling Rs32.288 billion, with 344 loans amounting to Rs810 million already disbursed.

Prime Minister Shehbaz Sharif has directed that the scheme’s loan and portfolio sizes should align with the initial approval. The Ministry of Housing and Works submitted a summary detailing the revised features, emphasizing the scheme’s positive public response. The ECC’s approval encompasses expanded eligible housing size parameters, the uniform 5% end-user pricing, scaled housing finance targets for the next four years, continued implementation via the State Bank of Pakistan, and the adjustment of previously disbursed loans to the new 5% rate for consistency.

The committee underscored that subsidy payments will be directly tied to actual disbursements and will be managed within annual fiscal budgets. This revised framework aims to broaden access to affordable housing finance, stimulate the construction sector, create jobs, and promote sustainable homeownership through a balanced risk-sharing and mark-up subsidy model.

In separate decisions, the ECC also approved a technical supplementary grant of Rs7.289 million for the ICT component of the ‘National Programme for Enhancing Command Areas in Barani Areas of Pakistan,’ intended to boost agricultural productivity in rain-fed regions. Additionally, a grant of Rs6.61 billion was approved for the Thar coal rail connectivity project to facilitate the transport of indigenous coal, supporting energy security and reducing dependence on imported fuels.