ECC approves markup subsidy for housing finance under NPHDA July 22, 2020

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ECC approves markup subsidy for housing finance under NPHDA July 22, 2020

ISLAMABAD-Economic Coordination Committee has approved markup subsidy for housing finance under Naya Pakistan Housing and Development Authority.

The approval was granted at ECC meeting held in Islamabad on Wednesday with Finance Adviser Dr. Abdul Hafeez Sheikh in the chair.

Markup subsidy shall be provided for 10 years on bank financing in the light of special incentives announced by the Prime Minister for housing and construction sector to revive economic development amid Covid-19 pandemic. 

The markup rate on housing units measuring up to five marla will be five percent for first five years and seven percent for next five years. For housing units measuring 10 marla, end user markup rate will be seven percent for first five years and nine percent for next five years.

The subsidy will be given on units where the price of the housing unit does not exceed 3.5 million rupees for 3-5 marla and is not more than 6 million rupees in case of 10 marla house. Thirty-three billion rupees have been allocated for the loan tenure of 10 years with 4.77 billion rupees to be allocated in the current financial year for the payment of markup this year.

The committee also decided to allocate 150,000 metric tons of wheat to the Pakistan Army from PASSCO resources on payment basis for current fiscal year. 

ECC also approved the prices of tobacco recommended by the Price and Grade Revision Committee.