ECC approves markup subsidy for Naya Pakistan Housing Authority
ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Wednesday approved markup subsidy for the housing finance proposed by the Naya Pakistan Housing and Development Authority (NPHDA).
The prime minister on July 10th had announced special incentives for the housing and construction sector to revive economic development amid the Covid-19 pandemic.
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“The markup subsidy will be provided for 10 years on bank financing,” said a statement issued by the finance ministry. “Accordingly, end-user markup rate on housing units measuring up to five marlas will be 5pc for the first five years and 7pc for the next five years.”
For housing units measuring 10 marlas, the end-user markup rate would be 7pc for the first five years and 9pc for the next five years.
The subsidy would be given on units where the price of the housing unit does not exceed Rs3.5 million for five marlas and is not more than Rs6 million in the case of a 10-marla house.
As many as Rs33 billion were allocated for the loan tenor of 10 years, with Rs4.77 billion to be allocated in the current financial year for the payment of markup this year.
Meanwhile, the ECC, chaired by Adviser to Prime Minister on Finance and Revenue Dr. Abdul Hafeez Shaikh, decided to allocate 150,000 metric tonnes of wheat to Pakistan Army from PASSCO resources on payment criteria set for 2020-2021.
The committee also approved the prices of tobacco recommended by the Price and Grade Revision Committee in pursuance of Section 8(1) of the PTB Ordinance 1968, directing the Ministry of National Food Security and Research (MNFSR ) to give a detailed presentation on the mechanism of determination of prices and also point out the gaps in the system.
Moreover, the committee approved an allocation of Rs41.8 million for the Ministry of Information Technology and Telecommunication/NITB for the deployment of systems, data analysis, modeling and mobile apps for NCOC stakeholders and government departments with the instructions that wherever possible the budget would be rationalized/ minimized with the consultation of Finance Division.
Lastly, the ECC approved the Establishment of Balochistan Mineral Exploration Company Limited (BMEC) with the support of the federal government.