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Ministry seeks Rs. 1.5 billion grant for disbursement of loans under PM’s low-cost housing scheme

Islamabad: According to a recent piece of news, the Ministry of Housing & Works has asked the federal cabinet’s Economic Coordination Committee (ECC) to approve an Rs. 1,500 million technical supplementary grant (TSG) for the disbursement of interest-free loans to borrowers under the Prime Minister’s Low Cost Housing Scheme.

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According to reports, the ECC conference, which is due to take place next week, will decide on the distribution of funds to the housing and works ministry for the current fiscal year (FY21).

The Finance Division contributed Rs. 5,000 million to the low-cost housing system in FY20. The government had signed a service agreement with Akhuwat Islamic Microfinance (AIM) through its approved representative to lend this amount to the country’s poor and deserving families. However, owing to Covid-19, only Rs. 3,000 million was eligible to be disbursed to creditors, with the remaining Rs. 2,000 million unavailable.

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Sources said the Ministry of Housing & Works had requested the Finance Division to provide the surrendered amount of Rs. 2,000 million and immediately allocate Rs. 1,500 billion for FY21 so that the same could be released to AIM as per service agreement for disbursement of interest-free loans.

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