Islamabad News: The Federal Government will approve an investment of 100 billion for 50000 new homes during this fiscal year. The Minister of Housing and Works presents the summary to the Economic Coordination Committee (ECC) for formal approval today.
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This scheme benefits first-time homeowners with subsidised housing finance for up to 20 years. The rate is fixed for the first 10 years, while the rate for the next 10 years is variable, based on the market rate. According to reports, banks will receive 10 percent first-loss risk coverage on outstanding portfolios.
Govt to Approve Rs. 100 Billion Plan for 50000 New Homes
For Tier I, the loan limit is up to Rs. 2 million, and for Tier II, it’s up to Rs. 3.5 million. The pricing will be based on one-year KIBOR plus 3%. Up to five marla houses or flats of up to 1,360 square feet are eligible. Commercial banks, Islamic banks, microfinance banks and HBFCL will participate.
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Pakistan is currently facing a severe housing shortage, estimated to be in the millions. In addition to providing low- and middle-income households with much-needed homes, the approval of this Rs. 100 billion plan is expected to boost the economy in the construction and related sectors significantly.
A comprehensive sector analysis and duty impact report has to be submitted by the Ministry of Commerce.
The ECC will discuss an edible oil pricing scam. Global edible oil prices have dropped 24 percent since December 2024, but local prices have risen 4.5 percent, allowing profiteers to extract unjustified margins of Rs. 150 per litre. The Ministry of Industries has submitted the matter to the ECC for review.
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