Islamabad: In an attempt to help low-income applicants of the Naya Pakistan Housing Programme (NPHP), the federal government has decided to extend the loan markup subsidy duration from 10 to 15 years, according to news reports. Following the new extension term, all projects developed by the Naya Pakistan Housing Development Authority (NPHDA) will be charged a 2% markup for the first 5 years, a 4% markup for the second, and a 5% markup for the remainder of the subsidy period.
According to reports, the cabinet division approved the summary following an evaluation of the current Government Markup Subsidy Scheme (G-MSS) by commercial banks and home financing organisations. According to the research, most applicants are ineligible for the existing 10-year term due to high debt-to-burden (DTB) ratios, particularly for Tier-1 NAPHDA projects. Furthermore, the Securities and Exchange Commission of Pakistan (SECP) has recommended that Housing Finance Companies (HFCs) be included in the scope of the G-MSS for all three tiers, on the same terms and conditions as commercial banks/FIs/HBFCs, in order to improve coverage and outreach of housing finance facilities.
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