Govt Resumes Mera Pakistan Mera Ghar Loan Disbursements

The Federal Government has announced to resume loan disbursements under the Mera Pakistan Mera Ghar Scheme (MPMG) to those applicants who have already been approved or made partial payments. However, the government has not approved resumption of new applications under the Mera Pakistan Mera Ghar Programme.

The announcement was made by the Ministry of Finance via Twitter. “Finance Division has today conveyed its permission to resume disbursements to already approved cases under Mera Pakistan Mera Ghar Scheme (MPMG).” the division wrote on Twitter. “Banks have also been asked to reduce their spread over KIBOR.” it added.

Furthermore, the State Bank of Pakistan (SBP) also issued a notification and explained the terms regarding the resumption of the Mera Pakistan Mera Ghar Scheme. According to the circular, the Federal Government has approved to make loan disbursements under the scheme if the cases are approved and meet any of the following conditions on or before June 30, 2022.

1. Approved cases (Purchase and/or Construction) pending for disbursement due to any legal formality. All pre-disbursement formalities have been done and 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 fee, etc)). This refers to Benchmark 1 against which SBP has solicited data from banks on July 7, 2022.
2. Approved cases where customers have entered into agreements, paid token money & obtained property documents from sellers or in case of construction loans, PTM / Fard for 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 SBP has solicited data from banks on July 7, 2022.
3. Peri-urban/NAPHDA project(s) cases where down payment has been received from customer. This refers to Benchmark 5 against which SBP has solicited data from banks on July 7, 2022.

Moreover, the Federal Government has also decided that spread of banks and DFIs on the disbursements against cases mentioned at (1) and (2) above and falling under Tiers 2 and 3 of Mera Pakistan Mera Ghar (MPMG) will be a maximum of 250 bps over and above KIBOR (instead of maximum allowed spread of 400 bps currently allowed).

The banks/DFIs/MFBs are also advised to ensure that markup subsidy claims in respect of disbursements against above allowed customers are invariably accompanied by certificates of their respective internal audit departments verifying meticulous compliance with above conditions and other features of MPMG. Furthermore, The State Bank of Pakistan (SBP) will also conduct inspection of these cases during regular/special inspection of the bank/DFI/MFB.

Meanwhile, the Federal Government is currently in the process of reviewing/revising the features of Mera Pakistan Mera Ghar Scheme (MPMG) and all other cases except those mentioned above will be considered and new applications will be opened when the revised features are announced by the Government.

It is pertinent to mention that the Federal Government had also instructed to halt disbursement of loans under the Prime Minister’s Kamyab Jawan Programme.

Read more: SBP Halts Kamyab Jawan Youth Entrepreneurship Program.

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