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       ？ Expresses concern over unjustified edible oil pricing despite global drop

       ？ Approves Rs72bn housing subsidy for 50,000 low-income families

       ISLAMABAD: The government raised serious concerns on Friday over 29 per cent illegitimate profiteering in the edible oil and ghee market and approved a subsidised housing scheme for 50,000 low-income families during the current fiscal year.

       Presiding over a meeting of the Economic Coordination Committee (ECC) of the Cabinet, Finance Minister Muhammad Aurangzeb was informed that international prices of edible oil and ghee had declined by 24pc in recent weeks, yet the local industry had failed to pass on the relief to consumers. In some cases, prices were increased by 4-5pc due to weak market oversight.

       Officials said the local industry routinely engaged in unfair practices due to a lack of regulation. While the Ministry of Industries and Production assured the ECC of adequate national stock levels, it acknowledged the limited pass-through of international price declines to the domestic market.

       The ECC directed strict monitoring to curb price distortions and potential cartelisation, urging the Ministry of Industries to coordinate with the Competition Commission of Pakistan, the National Price Monitoring Committee, and provincial governments.

       Subsidised housing scheme

       The ECC approved a markup subsidy and risk-sharing scheme to facilitate low-cost housing finance, with Prime Minister Shehbaz Sharif expected to formally launch the programme on Aug 14.

       Initially planned for 200,000 units, the scheme will now target 50,000 housing units — five-marla houses or 1,360 sq. ft flats — for first-time homeowners. Loans of up to Rs2 million will be offered at a subsidised 5pc fixed rate, and up to Rs3.5m at 8pc for the first 10 years, with market rates thereafter. The tenure will be up to 20 years, with no processing fees or prepayment penalties.

       The scheme includes a 90:10 loan-to-value ratio and a 10pc first-loss risk-sharing facility for participating institutions, including commercial, Islamic and microfinance banks, as well as the House Building Finance Corporation. It will be administered by the Pakistan Housing Authority Foundation (PHA-F).

       The total subsidy over 20 years is estimated at Rs72bn, with Rs3.93bn allocated for 2025–26. Disbursements are projected at Rs100bn in the first year. The budgetary requirement will peak at Rs7.12bn next year before tapering off to Rs2.26bn by FY36.

       The ECC also directed the Ministry of Housing & Works to develop a centralised database of the housing sector in coordination with federal and provincial bodies for better targeting and implementation. Three names have been proposed for the scheme: Apna Ghar-Roshan Mustaqbil, Mera Khwab-Mera Aashiyana, and Mera Ghar-Meri Jannat.

       Steel sector policy: The ECC endorsed a Ministry of Commerce report on boosting the competitiveness of the steel sector under the National Tariff Policy 2025–30, aimed at reducing production costs and promoting export-led growth.

       RLNG tariffs appeal: The ECC approved a summary for filing an appeal in the Supreme Court against the Lahore High Court’s decision to grant gas/RLNG tariff concessions to Ghani Glass Ltd. The committee noted that such concessions have been withdrawn from all sectors.

       Green taxonomy: Pakistan’s Green Taxonomy was approved to help financial institutions identify climate-aligned projects, enhance transparency in green investments, and mitigate climate-related financial risks.

       Skills bond guarantee: To promote skills development through outcome-based financing, the ECC approved a Rs1bn sovereign guarantee for the issuance of the Pakistan Skill Impact Bond (PSIB). The Ministry of Education was advised to explore public-private partnerships and reduce reliance on government guarantees.

       Radio-based service charges: The Ministry of IT’s proposal to revise charges for Radio-Based Services was approved, with directives for regular revisions every 3–5 years in line with economic and technological shifts.

       Ship-breaking industry status: The ECC formally declared ship-breaking and recycling as an industry. However, the Ministry of Maritime Affairs was asked to coordinate with the Power Division to assess the impact of shifting from commercial to industrial power tariffs.

       Published in Dawn, July 26th, 2025