During a meeting of the Economic Coordination Committee (ECC) of the Cabinet it was decided that the
subsidy approved for housing sector will only be applicable on new constructions and already
constructed structures will be excluded from the subsidy.
The subsidies decided for Naya Pakistan Housing & Development Authority (NAPHDA) are as follows: (i)
financing plan/model of mortgage finance for loan tenor up to 20 years; (ii) plan for markup subsidy for
ten years @ five percent for first five years and seven percent for next five years for housing units
measuring up to five Marla and @ seven percent for the first five years and nine percent for the next
five years for housing units measuring 10 Marla; (iii) on expiry of 10-year subsidy period, the
beneficiaries will be required to pay markup at the prevailing market rates; and (iv)approval of allocation
of Rs23.621 billion for the loan tenor of 10 years with a supplementary grant of Rs4.667 billion on
account of markup payment during the current financial year.
During the meeting it was discussed whether the subsidy should be utilized only for new constructions
or it could include existing/already constructed structures as well? After deliberations, the house
reached the consensus that the subsidy was meant only for new constructions.
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