ISLAMABAD: In a major positive development, the federal government will on Friday (today) approve the financing of 50,000 housing units. To this effect, an amount of Rs100 billion will be disbursed in the ongoing financial year. The Ministry of Housing and Works will place a summary before the ECC that meets today, seeking approval.
As per the summary, the government will enable first-time house and flat owners to avail themselves of housing finance up to 20 years at the subsidised fixed rate for the first 10 years and market rate for the next 10 years. However, there will be 10 percent risk coverage of the outstanding portfolios of financial institutions under the scheme on first loss basis.
The maximum loan under Tier 1 will be up to Rs2 million and above Rs2 million or up to Rs3.5 million under Tier-II. The maximum loan tenure will be for 20 years with subsidy for the first 10 years. However, the bank pricing will be for one year KIBOR plus 3 percent. However, there will be no processing cost and no prepayment penalty.
The size of the housing unit will be up to 5 marla or flat of up to 1360 sq. ft area. The participating financial institutions will be all commercial banks, Islamic banks, MFBs and HBFCL.
Plan to facilitate iron and steel industry: Meanwhile, the government has prepared a plan to facilitate the iron and steel industry that has been facing tariff distortions with high energy costs, resulting in underutilized production capacity and rising imports.
The ECC will look into it in its meeting today and may approve the plan.
The ECC of the Cabinet earlier directed the Ministry of Commerce to conduct an overall analysis of steel sector along with the impact of the regulatory duties on steel and present a report before the ECC by 31st March, 2025.
It suggested a balanced tariff structure, efficiency-driven cost reductions, and targeted policy measures are essential to ensure Pakistan’s steel industry remains competitive and contributes to national economic development.
Meanwhile, an edible oil scam has surfaced on the heels of a sugar scam, as the edible oil prices have dwindled by 24 percent in the international market since December 2024, but its prices in Pakistan remain up by 4.5 percent, showing how unscrupulous elements are swindling the masses.
The consumers are paying unjustified profit of Rs150 per liter to the swindlers and to this effect, the Ministry of Industries and Production has prepared a summary for the ECC that is meeting today.