ECC approves revised low-cost house financing facility

ISLAMABAD: The Economic Coordination Committee (ECC) of the cabinet on Wednesday approved revised low-cost home financing facility to expand its outreach and sovereign guarantee for Rs15 billion worth of loans for coal power transmission.

The decisions were taken during a meeting presided over by Minister for Finance and Revenue Hafeez Shaikh.

The meeting was briefed about revised eligibility criteria for selection of applicants, modalities for payment of cost subsidy and mechanism for release of funds with reference to the special incentive package for housing and construction sector announced in July last.

After due deliberation, the committee approved the stipulated eligibility criteria and payment mechanism for cost subsidy against 100,000 housing units to be constructed during phase-I by the end of the year.

The committee urged Naya Pakistan Housing and Development Authority (NAPHDA) to facilitate access to housing finance at affordable rates for expanding housing ownership and enabling low-to-middle income groups to avail low-cost housing facility according to their affordability.

The ECC approved another summary by the NAPHDA seeking permission to enter into negotiated procurement agreements for construction of low-cost housing through public-private partnerships.

The committee also approved a summary by NAPHDA about revision in key parameters of mark-up subsidy scheme for housing finance, as recommended by the State Bank of Pakistan, to ensure maximum participation for access to quality housing at an affordable price by fulfilling a relatively relaxed eligibility criteria.

The ECC further approved a summary by the ministry of energy (power division) regarding sovereign guarantee against financing facility of Rs15.2 billion from local banks for evacuation of power from two 1,320 MW Thar coal-based power plants

The committee was informed about the import of 300,000 tons of wheat through Trading Corporation of Pakistan (TCP) in compliance with the earlier decision of the ECC in January. Accordingly, TCP opened the ninth international tender.

The ministry of industries and production placed a summary before the committee regarding late payment surcharge (LPS) for operations of Sui Northern Gas Pipelines-based fertiliser plants between September 2018 and November 2019.

After seeking input from relevant stakeholders, the committee deferred the summary with a direction that LPS might be calculated on the actual cost incurred and a revised proposal be placed before the committee for consideration.

Power division tabled a summary regarding decision of the authority for fuel charge adjustment. After detailed discussion, the committee directed the secretaries of the finance and power divisions to deliberate further and present an updated proposal before the next ECC.

Power division submitted another proposal regarding payment of outstanding dues and settlement of tariff issues with Kashmir government. After detailed evaluation, a sub-committee was constituted.

The ECC further approved technical supplementary grants of Rs61 million to the ministry of railways for the completion of project titled

‘feasibility study for new rail link between Peshawar to Jalalabad through Loi Shalman valley’, Rs29.3 million to the National Heritage and Culture

Division for the Quaid-e-Azam Academy, Karachi, Rs413.7 million to the ministry of housing and works for renewal of lease of Garden West (Pakistan Quarters), Karachi, and Rs233.4 million to Public Procurement Regulatory Authority for e-procurement system.