Govt to Approve Rs. 100 Billion for 50,000 Low-Cost Homes This Fiscal Year
The federal government is set to approve Rs. 100 billion in financing today (Friday) for the construction of 50,000 housing units across the country during the current fiscal year. The initiative, led by the Ministry of Housing and Works, is being formally submitted to the Economic Coordination Committee (ECC) for final approval.
🏡 Key Features of the Housing Finance Scheme
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🎯 Target Audience: First-time homeowners
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🕰️ Tenure: Up to 20 years
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📉 Interest Rate:
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Fixed rate for the first 10 years
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Market rate for the remaining 10 years
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🏦 Bank Incentive: Banks will receive 10% first-loss risk coverage on outstanding housing portfolios
🧮 Loan Tiers and Pricing Structure
The housing finance plan is divided into two categories:
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Tier-I: Loans up to Rs. 2 million
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Tier-II: Loans above Rs. 2 million and up to Rs. 3.5 million
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Pricing: 1-Year KIBOR + 3%
📐 Eligible Units:
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Houses up to 5 marla
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Flats up to 1,360 sq. ft.
All commercial banks, Islamic banks, microfinance institutions, and the House Building Finance Corporation Limited (HBFCL) will participate in this scheme.
🔍 ECC to Review Edible Oil Pricing Discrepancy
In addition to housing finance, the ECC will also review a summary submitted by the Ministry of Industries regarding an edible oil pricing issue. Despite a 24% drop in global prices since December 2024, local prices have increased by 4.5%, resulting in unjustified margins of Rs. 150 per litre for profiteers.
The Ministry of Commerce has been instructed to present a detailed sector analysis and duty impact report on the matter.
