ECC approves markup subsidy for housing finance under NPHDA
Last updated on: 23 July,2020 10:21 am
For housing units measuring 10 marla, end user markup rate would be seven percent
ISLAMABAD (Dunya News) – The Economic Coordination Committee (ECC) of the Cabinet Wednesday approved markup subsidy for the Housing Finance proposed by Naya Pakistan Housing and Development Authority (NPHDA).
The prime minister on July 10 had announced special incentives for housing and construction sector to revive economic development amid Covid-19 pandemic.
The markup subsidy would be provided for 10 years on bank financing , according to press statement issued by the Finance Ministry here adding that accordingly, end user markup rate on housing units measuring up to five marla would be five percent for first five years and seven percent for next five years.
For housing units measuring 10 marla, end user markup rate would be seven percent for first five years and nine percent for next five years.
The subsidy would be given on units where the price of the housing unit does not exceed Rs.3.5 million for 3-5 Marla and is not more than Rs.6 million in case of 10 Marla House.
As many as Rs 33 billion were allocated for the loan tenor of 10 years with Rs.4.77 billion to be allocated in the current financial year for the payment of markup this year.
The ECC decided to allocate 150,000 metric tons of wheat to the Pakistan Army from PASSCO resources on payment basis for the year 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 and also directed that 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.
The committee also approved allocation of Rs. 41.8 million for Ministry of Information Technology and Telecommunication/ NITB for 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.
ECC also approved the Establishment of Balochistan Mineral Exploration Company Limited (BMEC) with the support of the Federal Government.