Government Cuts Housing Costs and Increases Subsidies

Government facilitates the low-income category of the society by reducing financing costs for housing and increasing the debt repayment period.

KARACHI: Government facilitates the low-income category of the society by reducing financing costs for housing and increasing the debt repayment period. Now, it will be more convenient for the deserving groups of society to finance their future homes with enhanced subsidies.

The central bank stated that the government has wholly altered pricing under the tier-1 low-cost housing scheme, which is used to finance projects for NAPHDA (Naya Pakistan Housing and Development Authority). Consequently, the markup rate was reduced to 2% for the initial 5 year period of the loan, 4% for the 6th-10th year, and 5% from the 11th to 15th year. Moreover, under tier-1 of the scheme, people would be able to acquire Rs 3 million. 

Furthermore, the subsidies provided by the government have doubled in amount under the low-cost housing scheme. The leniency in housing financing has led to an increased number of people willing to purchase a house.

Strict regulations have also been eased to acquire loans. Now, people who do not work in formal sectors can apply for loans by submitting their monthly utility bills.

As a result, it is seen that the federal government is aiming to work on related projects in other areas of Pakistan as well; Punjab, Khyber Pakhtunkhwa, Balochistan, and Islamabad Capital Territory. 

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