ECC approves criteria, payment mechanism for houses' construction under NAPHDA

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet Wednesday approved the stipulated eligibility criteria and payment mechanism for cost subsidy against 100,000 housing units to be constructed under 'Naya Pakistan Housing and Development Authority' (NAPHDA) in phase-I by the end of this year.

The ECC meeting was chaired by Federal Minister for Finance and Revenue, Dr. Abdul Hafeez Shaikh, according to press statement issued by the Finance Ministry.

The revised eligibility criteria for selection of applicants, modalities for payment of cost subsidy and mechanism for release of funds with reference to the special incentive package for Housing and Construction sector, announced by the Prime Minister in July 2020, was presented by the Chairman NAPHDA.

The Committee urged NAPHDA to facilitate access to housing finance at affordable rates for expanding housing ownership in accordance with the vision of the Prime Minister, enabling low-to-middle income groups to avail low-cost housing facility according to their affordability.

The committee also approved another NAPHDA summary, seeking permission to enter into negotiated procurement agreements for construction of low-cost housing through public-private partnerships (PPPs).

It also approved a summary by NAPHDA about revision in key parameters of Mark up Subsidy Scheme for housing finance, as recommended by the State Bank of Pakistan, to ensure maximum participation for access to quality housing at an affordable price by fulfilling a relatively relaxed eligibility criteria.

The committee deferred the summary presented by the Ministry of Industries and Production regarding Late Payment Surcharge (LPS) for operations of SNGPL based Fertilizer Plants between September, 2018 to November, 2019.

The summary was deferred with a direction that LPS should be calculated on the actual cost incurred and a revised proposal be placed before the Committee for consideration.

On summary presented by the Ministry of Energy (Power Division) regarding decision of the Authority for Fuel Charge Adjustment (FCA), the committee directed the Secretaries of the Finance and Power Divisions to deliberate further and present an updated proposal before the next ECC.

Power Division submitted another proposal regarding payment of outstanding dues and settlement of tariff issues with the Azad Jammu & Kashmir Government.

After detailed evaluation, a sub-committee was constituted under the Chairmanship of the Adviser to the PM for Institutional Reforms Dr. Ishrat Hussain including SAPM on Energy, Secretary Finance, Secretary Power and representatives from the Ministry of Water Resources, WAPDA, NEPRA and the Government of AJK.

The ECC also considered and approved a summary by the Ministry of Energy (Power Division) regarding GOP sovereign guarantee against financing facility of PKR 15,250 million from local banks for evacuation of Power from 2x660 MW Thar Coal Based Project (SSRL/SECL).

The ECC approved to import 300,000 MT of wheat. It was updated by the Secretary, Ministry of National Food Security and Research about the import of 300,000 MT of wheat through Trading Corporation of Pakistan (TCP) in compliance with the earlier decision of the ECC dated 20-01-2021.

The committee also approved Technical Supplementary Grants including Rs 61 million to the Ministry of Railways for the completion of project titled “Feasibility study for new rail link between Peshawar to Jalalabad through Loi Shalman valley” and Rs. 29.38 million for the National Heritage and Culture Division for the Quaid-e-Azam Academy, Karachi.

It also approved Rs 413.77 million to the Ministry of Housing and Works for renewal of lease of Garden West (Pakistan Quarters), Karachi and Rs 233.443 million to Public Procurement Regulatory Authority (PPRA) for E-Procurement System.

Among others, the meeting was attended by Federal Minister for Interior Sheikh Rasheed Ahmad, Federal Minister for Privatization Muhammad Mian Soomro, Federal Minister for Energy Omar Ayub Khan, Federal Minister for Industries and Production Hammad Azhar, Adviser to the PM on Commerce Abdul Razak Dawood, Adviser to the PM for Institutional Reforms and Austerity Dr. Ishrat Hussain, SAPM on Revenue Dr. Waqar Masood, SAPM on Power Tabish Gauhar, Governor State Bank of Pakistan Reza Baqir, Secretary Finance, Secretary Power Division, Secretary Ministry of National Food Security and Research, Additional Secretary Ministry of Industries and Production, Chairman Naya Pakistan Housing & Development Authority, Chairman BOI and other senior officials participated in the meeting.