ECC raises housing loan limit to Rs10m at 5% markup

February 28, 2026 (MLN): The Economic Coordination Committee (ECC) approved major revisions to the government’s Mera Ghar Mera Aashiana (MGMA) low-cost housing finance scheme, raising the maximum loan limit to Rs10m and introducing a uniform 5% end-user pricing structure.

The move is aimed at expanding access to affordable mortgage financing and stimulating construction activity.

The decision was taken at a meeting of the ECC held at the Finance Division and chaired by Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb, according to the press release.

The revised framework also expands eligible housing size parameters, sets scaled housing finance targets over a four-year horizon, and adjusts already disbursed loans to the new 5% rate to ensure uniformity across beneficiaries.

The committee was informed that since its launch, the MGMA scheme has received more than 10,594 loan applications, with disbursements currently underway.

The increase in the loan ceiling to Rs10m is expected to broaden participation in the low-cost housing segment, while the uniform 5% pricing mechanism standardizes borrowing costs for end users.

Implementation of the mortgage financing scheme will continue through the State Bank of Pakistan (SBP) mechanism, with subsidy payments aligned to actual loan disbursements and accommodated within annual fiscal allocations.

The revised model incorporates a balanced risk-sharing and mark-up subsidy structure to support sustainable home ownership.

The ECC noted that the changes are intended to expand affordable housing finance, support construction sector growth, generate employment, and promote home ownership in a fiscally managed manner.

The construction and housing sectors are considered key drivers of economic activity, with linkages to cement, steel, and allied industries.

In a separate decision, the ECC approved a Technical Supplementary Grant (TSG) of Rs7.289m for the ICT component of the “National Program for Enhancing Command Areas in Barani Areas of Pakistan,” following a summary submitted by the Ministry of Interior & Narcotics Control.

The allocation is aimed at strengthening agricultural productivity in rain-fed regions.

The committee also granted approval for a Rs6.61bn Technical Supplementary Grant for the Thar Coal Rail Connectivity Project, as requested by the Railways Division, to provide budgetary cover.

The project is designed to facilitate transportation of indigenous coal to power plants and industrial users, supporting energy security and reducing reliance on imported fuels.

The meeting was attended by Federal Minister for Investment Qaiser Ahmed Sheikh, who joined virtually, along with federal secretaries and senior officials from relevant ministries, divisions, and regulatory bodies.

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