SBP pauses disbursements under Mera Pakistan Mera Ghar low-cost housing scheme

Data shows 21,980 low cost houses completed, 52,439 under construction and 95,084 in planning phase out of 5 million houses planned by PTI

The State Bank of Pakistan (SBP) instructed banks to put on hold further disbursements under Mera Pakistan Mera Ghar (MPMG) scheme till August 31, 2022, and to also pause fresh disbursements under the Prime Minister’s Kamyab Jawan Youth Entrepreneurship Scheme till July 15, 2022.

A promise was made by the previous Pakistan Tehreek-e-Insaf government to provide five million houses under the banner of Naya Pakistan Housing Program. According to data, only 21,980 low-cost houses have so far been completed while 52,439 are under construction and 95,084 are in their planning phase. The flagship programme was aimed at ensuring availability of adequate housing in Pakistan as well as improving economic activities in the construction sector. 

The SBP says that the reason for halting both schemes is the same: “Government of Pakistan is considering to review/revise features of the subject scheme in light of recent developments in the macroeconomic scenario.”

The circular further clarified that in cases where partial disbursements have already been made till June 30, 2022; financial institutions may release the remaining disbursements under MPMG.

Permanent break on Mera Pakistan Mera Ghar?

As per sources at Naya Pakistan Housing & Development Authority (NAPHDA) – a dedicated organisation established in January 2020 through an Act of Parliament to work on the scheme – the disbursement of subsidy under the house financing scheme has already been stopped by banks as the budget 2022-23 has not allocated any fund for it. 

The data released by the SBP shows that as of 31 May 2022, PKR 473 billion had been requested, PKR 212 billion had been approved, and PKR 85 billion had been disbursed under MPMG. The outstanding credit for housing and construction stood at PKR 415 billion for the month ending May 2022.

The budget 2022-23 earmarks only PKR 500 million for NAPHDA, which is hardly enough to cater to the subsidy demand of a mere 16,000 to 17,000 under-construction housing units for one year.

“The disbursement has already been stopped soon after the budget 2022-23,” said an official on condition of anonymity, adding that the issue with this programme was also related to the rising volume of subsidy after a huge jump in interest rates.

As per the programme, the government was supposed to meet the remaining interest rate of what it had announced as subsidy under the low-cost housing scheme. 

According to the programme, the borrowers were to be charged a financing rate of 3% for the first five years and 5% for the next five years. Under the present interest rate of 13% the government was to bear the remaining interest financing as subsidy. KIBOR + up to 250 bps was decided on for the remaining financing tenor.

Meanwhile, an official at the ministry of finance claimed that “it was realised when banks started demanding funds under the scheme that they have crossed the disbursement limit set for the outgoing fiscal year,” he said.

“Apart from the huge claims of banks, there was a complete lack of coordination among the concerned departments including SBP, banks and ministry of finance, which ultimately resulted in the mess,” he added.  According to the official, the issue is now being reviewed at various forums.

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Ghulam Abbas
The writer is a member of the staff at the Islamabad Bureau. He can be reached at [email protected]

145 COMMENTS

    • Wo log kaha jayen Jin logon ne agreement Kiya ho sare Farmalty pori ki ho UN ka case Approved ho gaya ho Awam to pareshan ho gaye h Awam ne pese kharch kiye ho mehngaye k door m kese Mehnat ki Hoge wo kiya Karen😔😔😔

      • Aoa. I also have the same issue. I have deposited token money of 5 lac and construction by the builder/seller is underway. My whatsApp No. is 0334 4488170. Please add me. We can do some combined effort in this regard. Dr. Muhammad Akbar Shahid

  1. All the required documents are submitted to the bank, the agreement has been made and token money paid. Who will bear these expenses???

      • Aoa. I also have the same issue. I have deposited token money of 5 lac and construction by the builder/seller is underway. My whatsApp No. is 0334 4488170. Please add me. We can do some combined effort in this regard. Dr. Muhammad Akbar Shahid

  2. Legal and evaluation charges have been paid to bank, 10% agreement has been signed, wo will bear these losses. At least they must have to complete approved cases.

  3. Totally unfair. What Those people will do? who have offer letter and have made advance payments to sellers? While their property documents are in process for disbursement.

      • Aoa. I also have the same issue. I have deposited token money of 5 lac and construction by the builder/seller is underway. My whatsApp No. is 0334 4488170. Please add me. We can do some combined effort in this regard. Dr. Muhammad Akbar Shahid

  4. Kya Ganda decision hy ….
    Kya kabi es mulak mein awam k liey koi Acha mansooba mukamal b ho ga?
    Gandi politics kay lie ye koa ja rha hy
    Jin logon k case approved hain wo kya kery ab or kaha jaen…..?

  5. AOA please the define jin ka approved ho gaya hy Beany dy chuky hain please un ka sochy or un ko pay kar dain, please the calerify ????

  6. I have also completed my all documentation and done Biana with all agreements. I am in losses. kindly give house loan to approved cases .

    • Sir Mera Sara proses complete Hy mjhe LHR se Cal i apka 4 July ko disbursed ho jaega Mera to Biana b JAMA Hy hum ab Kia Karen plz btaen

  7. I have paid 650,000 to owner paid all the. bank fees and other documents charges on 4th of July bank gives me time for cheque now what ll happened this is huge lose, This Gando Govt. have no pain of Peoples.

  8. Sir disbursement stage pai jo causes ha un ka kya banah ga ..garib loogoo nah 50 hazar plus kharach kar k process mukamal kiya ha

  9. We will go in high court against about this sudden decision from govt..
    We paid biana for the land,,, we purchased under this scheme,, this decision dis appointed alot,, we can, t wait….. Any body want to writ in high court with me, we will achieve this… CAll 03007603302,, hum haar nai manay gay💪

    • Aoa. I also have the same issue. I have deposited token money of 5 lac and construction by the builder/seller is underway. My whatsApp No. is 0334 4488170. Please add me. We can do some combined effort in this regard. Dr. Muhammad Akbar Shahid

  10. SBP Notification must review otherwise thousands of poor people will move to High court against this circular
    Jinh logo ny Byana pay kr deya hai .. property transfer pr sara expense pay kr chuky hain , wo log kya kry ghain ?
    Salaried person ki sari zindagi ki jama ponji .. SBP kay bad notification ki nazar ho jaiay gi ?
    Kya High Court insaaf day ga in logo ko ?
    I also want to go on appeal High Court

  11. Dear All Effected Customers,
    share your contact Numbers then We all protest in front of the state bank of Pakistan otherwise they will not take seriously and they treat us as a slaves. i also paid half amount of plot value and got offer letter as well but just last moment they us shit who al ready done banya and got offer letter at least they release payments.

  12. Dear All Effected Customers,
    share your contact Numbers then We all protest in front of the state bank of Pakistan otherwise they will not take seriously and they treat us as a slaves. i also paid half amount of plot value and got offer letter as well but just last moment they us shit who al ready done banya and got offer letter at least they release payments.

  13. Processing fee, documents ka kharcha or agreement ki 10% payment kar chuka hu!!!!?????? State Bank new applications stop kar sakhti hy…. Puranay saray cases ko process karwai…… 03003003425

  14. SBP must take off this cruel decision and should disburse atleast approved cases whose biana has been paid to seller.

  15. Is Hakoomat se juray tmam logon ko ALLAH neesto naboot kray meri dil se Dua hai. Main ne loan utha k all documents complete keay ab bs payment milni baqi thi. Lekin is kutti hakoomat ne awan ka kabhi ni sochna

    • Aa.sir our case was just on disbursement please add my numbr
      03226844443
      Time is to short for effected persons.sell of agrements are going to expire.
      If any layer take step for us we r with him and also pay the charges
      Firstly make a whats ap group all effected persons ll b there and take step in high court

  16. I am Sajid Hussain , I have completed documents to Bank Al Habib Gulgast Multan, as per advise of bank staff , I have made agreement with seller and paid advance 10 lack , plz do something and save my loss.

  17. I am zaheer Hussain , I have completed documents to Bank Alfalfa lahoer, as per advise of bank staff , I have made agreement with seller and paid advance 25 lack , plz do something and save my loss.03034447366

  18. Bilkul strictly strike honi chaiay its our right
    Suddenly stopped ku kia s p policy may mention tha k scheme khtam krnay say 30 days phly inform kia jay ga
    Hamaray cell of agreemnt hochuky hy kafe high amount k sath yea sab doib jay ga

  19. Is issue ko resolve krnay main all banks k ceo lagay howay hain.1/2 din wait kr latay hain.
    Is k bad banking court main apple krni hay.aur media per is ko lana ho ga

    • Aoa. I also have the same issue. I have deposited token money of 5 lac and construction by the builder/seller is underway. My whatsApp No. is 0334 4488170 and I am from Multan. Please add me. We can do some combined effort in this regard. Dr. Muhammad Akbar Shahid

  20. Review process kb tk complete ho ga SBP ka bayana dya hua h time short reh gya kya krn ab hm… Kch to khyal kro gareeb awam ka sb kch cheen lya tha ab ghr ki chat bhi cheen li
    Kindly btain 03072412482

    • After eid hi koi news aye gi
      Jab statebank written notice send jey ga banks ku
      Aur intreset rate 14 kry dy ga i think

  21. What i do all documents of my plot in bank all process is completed mortgage and disbursement remaining all fee paid

    • What i do all documents of my plot in bank all process is completed mortgage and disbursement remaining all fee paid
      03017467607

  22. A o a bhiyo….
    Bahut ziada log is problem main hai is ka bahter solution ye hai k ye sb log Jin k case disbursement k qreeb the wo sb mil kr high court main case krain ya SBP k Samny strike krain….
    03002084950
    Hum bi lutty hoe Hain

  23. What i do all documents of my plot in bank all process is completed mortgage and disbursement remaining all fee paid
    03215034311

  24. Janab Advocate sb ap koi Kadam bharhain ham apka sath hain
    ya sub 1 din slelectkar lain ur Islamabad Finace minstry ka samna jama ho jain ya suprim court ya high court main case karain

  25. Aoa. I also have the same issue. I have deposited token money of 5 lac and construction by the builder/seller is underway. My whatsApp No. is 0334 4488170 and I am from Multan. Please add me. We can do some combined effort in this regard. Dr. Muhammad Akbar Shahid

  26. Aoa. I also have the same issue. I have deposited token money of 25 lac and construction by the builder/seller is underway. 30 June 2022 i was received Offer letter and Pay order was under process but due to state bank new notification i will loss a huge amount. My whatsApp No. is 03185648551 and I am from Islamabad. Please add me. We can do some combined effort in this regard. Ahmad

  27. Kindly share your no I will create a WhatsApp group for comments to resolve this matter. I am Saleem Shah Hashmi from o/o Auditor General of Pakistan Isb. I have paid adv money and other expenses amounting to Rs. 500,000.my case is almost approved. Now intend to create a WhatsApp group of all MPMG scheme. Kindly share your views and suggestions on my WhatsApp no 03345122937. Regards

  28. AOA, i have paid 1 million in sales agreement and also paid tokan money, legal fees, bank processing fees, etc My case is almost approved but due to notification of SBP, i have loss a huge amount. Please add me in Wats up group. My watsup number is 0346 9559824
    Thanks
    Farooq Ahmad

  29. I have pay the token money also plz add me for complaint my contract number is 03015011930 a d my WhatsApp number is 03127089945

  30. Many byana dia hua h cases approved hugya km sy km jo cases approved h or jin ka byana hua h wo tu clear krdy
    03228790637 kindly add this num whatsapp group

  31. I have also cleared all formalities and paid advance to owner. My case was at the approval stage. How I will bear such losses

  32. AOA
    me jis purany ghar me rehta tha us ko ukhara hy ab bay gar ho gaya 5 lac advnace salry refund kia wo b kisi se qaraz le ker ab asman door zameen sakht hy in mehellat me rehnay waloo k fesly to dekho case ready kerny me itna time or pesa laga hy wo kon day ga zulam ki intha hy

  33. Sir. Mari pre sentinel Hoi hy ab jb main CO partner ka dacoment jma ker wany Gia to khty 2month k baad rabta krn gy is ka kia bny ga plz rahnomai kri

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