The government has decreased the mark-up rates on the subsidized housing scheme Mera Pakistan Mera Ghar by one percent on different terms.
The reduction is made for the housing projects categorized as Tier 1, which will be developed by Naya Pakistan Housing Development Authority (NPHDA).
In view of the feedback received from various stakeholders, the Government of Pakistan (GOP) has decided to revise pricing (mark-up rates and subsidy payment period) under Tier 1 of the captioned scheme which is used to finance housing units in NAPHDA projects, according to the State Bank of Pakistan.
Under the revision, the mark-up or profit rate for the period of 5 years of repayment has been reduced to 2 percent from 3 percent. The mark-up or profit rate for the next 5 years has been reduced to 3 percent from 4 percent. The rates for the next 1 year will remain the same, that is, KIBOR plus 2.50 percent.
Customers could book houses up to 125 square yards (5 Marla) with a maximum covered area of 850 square feet. Alternatively, they could book a flat/apartment with a maximum covered area of 850 square feet.
The maximum price of the housing unit was set at Rs. 3.5 million whereas the owner should contribute to Rs. 270,000 as the down payment to get the possession of the housing unit.
The reduction of rates might attract customers to book their housing units in the projects of NPHDA but these projects are very limited to cater to a wide population.
On the other hand, the cost of construction has gone up tremendously in the last couple of years which jacked up the prices of housing units across the country.
So far, over 2 million applications have been received by NPHDA for these schemes. The authority has acquired lands on locations mainly in urban, semi-urban, and rural locations in Punjab.
The government has claimed to have built 20 thousand housing units under NPHDA schemes and nearly 45,000 under constructions housing units however development foundations had a major role with authority acting as a supervisor body.
Source: Pro Pakistani