By Muhammad Soban

ISLAMABAD, July 27 : The State Bank of Pakistan (SBP) has said it is restructuring the Mera Pakistan Mera Ghar housing programme in light of the grave economic conditions, and the scheme will soon be available for low-income people.

Dr Murtaza Syed, deputy governor of the SBP, disclosed during a recent podcast that the central bank is working on restructuring the scheme to resume it soon. Sima Kamil, deputy governor of the SBP, said that the scheme is designed for low-income people, who could not afford conventional house financing. The government will provide house financing on very low interest rates and at easy instalments. 

However, due to the tough economic decisions necessitated by the International Monetary Fund for resumption of its loan programme, the government has decided to stop financing under this subsidied housing scheme, and has asked the SBP to redesign it.

“Currently, the SBP is working on redesigning this scheme and soon it will be available for low-income people, who want to build their own houses,” Sima Kamil added.

She said Finance Minister Miftah Ismail had assured that the people, who had so far applied for the housing loan, would get the credit on the previous terms. The SBP would soon permit commercial banks to start releasing the loans under the scheme. According to the finance minister, the government would continue providing loans under the scheme to all those whose loan applications had been approved, and who had made an advance payment. The government would also ask banks to lower their interest rates.

A revised version of the scheme will soon be rolled out, Miftah Ismail said, adding the government is reshaping it to make it more accessible. The central bank had earlier instructed banks to put disbursements under the Mera Pakistan Mera Ghar scheme on hold until August 31, 2022, stating that the government was considering a review/revision of the features of the scheme in light of recent developments in the macroeconomic scenario.