The federal government has announced the resumption of disbursements under the Mera Pakistan Mera Ghar housing scheme that was put on hold by the State Bank of Pakistan for restructuring. A tweet from the Ministry of Finance reads; “Finance Division has today conveyed its permission to resume disbursements to already approved cases under Mera Pakistan Mera Ghar Scheme( MPMG). Banks have also been asked to reduce their spread over KIBOR.”
Finance Division has today conveyed its permission to resume disbursements to already approved cases under Mera Pakistan Mera Ghar Scheme( MPMG). Banks have also been asked to reduce their spread over KIBOR.#SBP #miftahismail
— Ministry of Finance (@FinMinistryPak) July 25, 2022
Disbursements to Resume Under Mera Pakistan Mera Ghar Housing Scheme
The finance minister, Miftah Ismail, posted a Twitter thread saying that the government has decided to resume the disbursements of the MPMG housing loan scheme for all those whose loan applications have been approved and who have paid advances. He further added; “We will also ask the banks to reduce the interest rate charged. We are still in the process of reshaping the scheme to make it cheaper and more widespread. This revised scheme will be rolled out soon.”
Conditions Set by SBP
According to a circular issued by SBP, the federal government decided to allow banks, DFIs and MFBs to disburse financing as per existing terms of MPMG in respect of cases approved and meeting any of the following conditions on or before June 30, 2022:
a) Approved cases (purchase and/or construction) pending for disbursement due to any legal formality. All pre-disbursement formalities have been done and the bank has communicated the same (Being in advance stages, these customers have completed almost all pre-disbursement formalities, paid token money, and incurred all incidental expenses (legal & processing fees, etc). This refers to Benchmark 1 against which the SBP has solicited data from banks on July 7, 2022.
b) Approved cases where customers have entered into agreements, paid token money, and obtained property documents from sellers, or in the case of construction loans, PTM/Fard for the loan has already been issued. (These cases are just short of ‘approved cases pending for disbursement’ (Benchmark 1), as in such cases, a few internal procedures of banks may still be required to be completed but the borrowers have incurred all major costs/expenses based on approvals from banks). This refers to Benchmark 2 against which the SBP has solicited data from banks on July 7, 2022.
c) Peri-urban/NAPHDA project(s) cases where a down payment has been received from customers. This refers to Benchmark 5 against which the SBP has solicited data from banks on July 7, 2022.
Furthermore, the federal government has decided that spread of banks and DFIs on the disbursements against cases mentioned at (a) and (b) above and falling under Tiers 2 and 3 of MPMG will be a maximum of 250 bps over and above Kibor (instead of maximum allowed spread of 400 bps currently allowed).
Read more: Government to Roll out Reshaped Mera Pakistan Mera Ghar Scheme Next Week