SBP Pauses Mera Pakistan Mera Ghar Scheme Disbursement
The State Bank of Pakistan (SBP) has paused the disbursements for Mera Pakistan Mera Ghar Scheme (MPMG). This Scheme was introduced for the low-income class of Pakistan to buy a home or land with loan assistance.
A total of 5 million houses were planned by the previous government out of 95,084 are now in the planning phase as well. So far, the construction work has been completed on 21,980 houses and 52,439 houses are still under construction.
The disbursement payment has been paused for two government schemes, namely Mera Pakistan Mera Ghar Scheme and Prime Minister’s Kamyab Jawan Youth Entrepreneurship Scheme. The payments will be seized till the 31st of August 2022 for MPMG Scheme and till 15th July 2022 for Prime Minister’s Kamyab Jawan Youth Entrepreneurship Scheme.
Naya Pakistan Housing and Development Authority will not be issued funds for the scheme as the new budget does not allocate any funds for this project. The budget has only allocated PKR 500 million for the MPMG scheme which will be insufficient to meet the demand for construction.
The government still has to meet the subsidy requirement for the scheme for the remaining interest rate. The PKR 500 million budget allocations will hardly suffice for subsidy on 16,000 to 17,000 houses under construction.
The government has been bearing the cost of subsidy which was to be provided for the construction at a 13% interest rate. The banks have previously exceeded their limit for disbursements for MPMG Scheme and the State Bank of Pakistan was obliged to put a halt on this project.
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