State Bank of Pakistan in its recent circular, on 25th July 2022, has issued the guidelines for the disbursement of loans for registered applicants of the Mera Pakistan Mera Ghar (MPMG) Scheme: which was suspended in June 2022 by the Government of Pakistan. In context, the Govt of Pakistan and SBP, in October 2020 stated the scheme to improve the availability of adequate and affordable housing in the country by ensuring the provision of financing for the housing and construction sector. For further details of the scheme, you may visit our blog on detailed features of the Mera Pakistan Mera Ghar Scheme. Earlier on June 30, 2022, SBP had instructed banks to put disbursements on hold under the Mera Pakistan Mera Ghar (MPMG), stating that “The government was considering a review/revision of the features of the scheme in light of recent developments in the macroeconomic scenario.”

After the temporary suspension of the scheme, SBP had to face a lot of queries regarding those applications who had paid their advance, had completed other formalities and only the disbursement process had been on hold. Earlier than this notification, in a tweet, Finance Minister Miftah Ismail said he held a meeting with the State Bank of Pakistan (SBP) wherein it was decided that the housing loan scheme would continue for all those whose loan applications had been approved and who had paid the advance/token money. It is pertinent to note that out of the government’s promise to provide 5 million houses under the banner of the Naya Pakistan Housing Program, only 21,980 low-cost houses have so far been completed while 52,439 are under construction and 95,084 are in their planning phase

According to the circular of SBP, financial disbursement on the same markup to the following three categories of applications has been approved.
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 SBP has solicited data from banks on July 7, 2022.
B. 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 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 SBP has solicited data from banks on July 7, 2022.
C. Peri-urban/NAPHDA project(s) cases where down payment has been received from customers. This refers to Benchmark 5 against which SBP has solicited data from banks on July 7, 2022.
Lastly, fresh applications for the MPMG scheme will not be entertained for the time being. Only the above three categories will be considered for financial disbursement.