Islamabad, February 27, 2026 – Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, on Friday approved the revised features of the “Mera Ghar Mera Aashiana (MGMA)” – Mortgage Financing for Low-Cost Housing Scheme, while chairing a meeting of the Economic Coordination Committee (ECC) of the Cabinet. The committee also sanctioned major infrastructural and development-related grants to support housing, agriculture, and energy sectors.
According to an official press release, the ECC reviewed a summary submitted by the Ministry of Housing and Works, seeking approval of revised parameters for the MGMA scheme, which aims to expand access to affordable housing finance across Pakistan.
Enhanced Features to Broaden Housing Access
The committee was informed that the scheme has received an encouraging public response since its launch, with more than 10,594 loan applications already submitted and disbursements currently underway.
After detailed deliberations, the ECC approved several key enhancements, including:
• Increase in loan limit up to Rs10 million
• Expansion of eligible housing size parameters
• Introduction of a uniform 5% end-user pricing rate
• Scaling of housing finance targets over a four-year period
• Continuation of implementation through the State Bank of Pakistan (SBP) mechanism
• Adjustment of previously disbursed loans to the revised 5% rate to ensure uniformity
The committee emphasized that subsidy payments would be linked strictly to actual loan disbursements and accommodated within annual fiscal allocations. The revised framework is designed to promote affordable home ownership, stimulate construction activity, create employment opportunities, and ensure sustainable growth through a balanced risk-sharing and mark-up subsidy model.
Grants Approved for Agriculture and Rail Connectivity Projects
In addition to housing reforms, the ECC approved several Technical Supplementary Grants (TSGs) to support key development projects.
The committee cleared a Rs7.289 million TSG for the Ministry of Interior & Narcotics Control for the ICT component of the project titled “National Program for Enhancing Command Areas in Barani Areas of Pakistan.” The initiative aims to boost agricultural productivity in rain-fed regions through improved infrastructure and resource management.
Furthermore, the ECC sanctioned a Rs6.61 billion TSG for the Thar Coal Rail Connectivity Project, as proposed by the Railways Division. The project is expected to facilitate the transportation of indigenous coal to power plants and industrial units, strengthening national energy security and reducing dependence on imported fuels.
High-Level Participation
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 authorities.
The approvals reflect the government’s continued focus on affordable housing, agricultural development, and energy sector reform to drive inclusive and sustainable economic growth.