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Circular No. 14 of 2022 – Government Mark-up Subsidy Scheme for Housing Finance – Inclusion of Housing Finance Companies (HFCs) as Executing Agencies

Housing Finance Companies (HFCs) are authorized to participate as Executing Agencies in the Government Mark-up Subsidy Scheme for Housing Finance, subject to meeting specific eligibility criteria including a minimum equity requirement of Rs. 50 million, increasing to Rs. 100 million within one year. HFCs must maintain adequate staff, board-approved policies, and management information systems, and are required to appoint independent Chartered Accountants to verify loan authenticity and subsidy claims. The circular mandates that HFCs suspend further financing if non-performing loans reach 15% of the GMSS portfolio and imposes penalties for incorrect claims or failure to reimburse invalid amounts.

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# SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN
## SPECIALIZED COMPANIES DIVISION
### POLICY, REGULATION AND DEVELOPMENT DEPARTMENT

**No. SC/NBFC-1-196/Circular/2022/ 48**  
**Circular No. 14 of 2022**  
**December 26, 2022**

---

**Subject: Government Mark-up Subsidy Scheme for Housing Finance – Inclusion of Housing Finance Companies (HFCs) as Executing Agencies**

In pursuance of the approval by the Economic Coordination Committee and ratification by the Federal Cabinet on January 11, 2022, to, inter alia, include the Housing Finance Companies (HFCs) as Executing Agencies (EAs) in Government Mark-up Subsidy Scheme (GMSS) for housing finance and State Bank of Pakistan letter no. IH&SMEFD.IHFD/MPMG/2022-02611 dated March 08, 2022, the Securities and Exchange Commission of Pakistan (“Commission”), in exercise of powers conferred under sub-section (3) of section 282B of the Companies Ordinance, 1984 (XLVII of 1984) read with clause (e) of regulation 28 of the Non-Banking Finance Companies and Notified Entities Regulations, 2008 (the “NBFC Regulations”), and in continuation of the circular no. 5 of 2022 dated March 15, 2022 hereby prescribes the following requirements for the HFCs to participate as EAs in GMSS.

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## A. Eligibility Criteria and Assessment of Financial Soundness of HFCs

1. For participation in GMSS as EA, an HFC is required to meet the following criteria:

   a) The HFC has a valid license from the Commission to undertake Housing Finance Services and is compliant with the prevailing regulatory requirements;

   b) The HFC meets and maintains minimum equity requirement (MER) of Rs. 50 million as required in the NBFC Regulations. However, within a period of one year from the date of participation as EA in the GMSS, the participating HFC shall be required to meet and maintain the increased MER of Rs. 100 million;

   c) In addition to meeting requirements of the NBFC Regulatory Framework including Fit and Proper Criteria, at least one director or the Chief Executive of the HFC must have minimum of five years of experience at a senior management level in the areas of lending, risk management, consumer, corporate, or housing finance in a bank or a financial institution;

   d) The HFC has employed adequate staff with proper education, knowledge and experience in the areas of lending, microfinance, consumer or housing finance to ensure sound underwriting and management of housing loans under the GMSS;

   e) The HFC has in place the following policies and documents approved by its Board or relevant committees of the Board with respect to housing finance:

       i. Product manuals;  
       ii. Strategic plan;  
       iii. Risk management framework;  
       iv. Information disclosure policy;  
       v. Mechanism to monitor asset-liability mismatch;  
       vi. Credit Policy;  
       vii. Grievance Redressal Policy;  
       viii. AML/CFT Policy;  
       ix. Internal Audit Framework; and  
       x. Recovery Policy;

---

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Tel: 051-9207091-4, Fax. No. 051-9100473

SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN
SPECIALIZED COMPANIES DIVISION
POLICY, REGULATION AND DEVELOPMENT DEPARTMENT

f) The HFC has implemented adequate management information system capable of effectively providing necessary reports including delinquency reports, calculation of installments and markup etc. required for effective management of housing finance portfolio.

2. The HFC, which intend to participate as EA under GMSS and fulfils the above criteria, shall submit an undertaking to the SECP that it complies with the eligibility criteria and shall ensure compliance with the terms and conditions prescribed under this circular.

3. If the HFC fails to comply with the above eligibility criteria at any time as EA under GMSS; it shall immediately report the same to the Commission and cease to disburse fresh loans under GMSS.

B. Regulatory Monitoring Requirements and Conditions Applicable to HFCs for GMSS

1. HFCs shall comply with all the requirements, terms and conditions of the GMSS, as may be imposed for the participating EAs, including, inter alia, eligibility requirements of the applicants/borrowers and housing units under the GMSS as prescribed by the State Bank of Pakistan (SBP).

2. If the non-performing loans (NPLs) of an HFC under the GMSS, reach a level of 15% of its GMSS gross loan portfolio, the HFC shall suspend any further financing under the scheme. Upon reaching a stage, where 100% provisioning is required against the aforesaid NPLs, in terms of NBFC Regulations, the HFC shall immediately inform the Commission and processing of claims of the HFCs shall be suspended.

3. The HFC with approval of Commission, shall appoint independent firms of Chartered Accountants (the “Appointed Firms”) from the Category ‘A’ of the SBP Panel of Auditors maintained under section 35(1) of Banking Companies Ordinance, 1962. The Appointed Firm shall be responsible to:
   i. examine and verify the loans sanctioned by the HFCs under the GMSS for checking authenticity and compliance with the requirements; and
   ii. scrutinize and authenticate the subsidy claims of EAs to ascertain that calculations of EAs subsidy claim are correct and applicable KIBOR has been used by the EAs.

4. The cost for appointment of the firms shall be borne by the respective HFCs and services of the firms shall not be terminated except with prior approval of the Commission. It shall be binding upon the participating HFCs to allow the Appointed Firms full access to their premises and relevant records necessary for independent verification of all loans and claims under the GMSS.

5. Statutory auditor of the HFC shall also conduct audit of loans disbursed and subsidy claimed under the GMSS on a sample basis and separately disclose a relevant conclusion in auditor’s report to members on the financial statements of the HFC.

NIC Building, 63 Jinnah Avenue, Blue Area, Islamabad.
Tel: 051-9207091-4, Fax. No. 051-9100473

SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN
SPECIALIZED COMPANIES DIVISION
POLICY, REGULATION AND DEVELOPMENT DEPARTMENT

6. Supervision Division of the SECP during regular inspection of the HFCs may conduct inspection of their housing finance portfolio on sampling basis using its own sampling techniques. SECP may randomly select credit files and review them from the perspective of eligibility of borrowers under the GMSS, status of loan (regular or NPL) and GOP subsidy claim.

7. If at any point in time, any claim of an HFC is found to be incorrect or without valid basis, during inspections or otherwise, the HFC shall, upon direction of the SBP/SECP, immediately reimburse the claim amount to the SBP. Additionally, in such cases, the HFC shall be liable to pay a penalty in terms of Section 282J of the Companies Ordinance, 1984 to the SECP. This shall be without prejudice to any action, proceedings or penalties under the applicable laws and regulatory framework.

8. In case of failure of HFC to pay the penalty imposed on it or comply with the direction to reimburse the amount of invalid or incorrect claims, as envisaged under clause 7 above, the SBP shall recover the amount of incorrect or invalid claim and on SECP’s request deduct the imposed penalty while processing the request of HFC for quarterly subsidy payment claim.

C. Markup Subsidy Payment Mechanism

1. Housing loan pricing, procedure for loan disbursement and availing markup subsidy, calculation of equal monthly installments (calculated on the principle of 365 days in a year) for borrower and calculation of markup subsidy shall be in accordance with SBP IH&SMFED Circular Letter No. 03 of 2021 (Payment Mechanism of Markup Subsidy for Housing Finance & Annexure-A Markup Subsidy Calculation). (enclosed as Annexure-A).

2. Payment of subsidy to HFCs will be made through SBP’s operational arm viz. Development Finance Support Department (DFSD), SBP BSC, Head Office, Karachi.

3. HFCs shall prepare and submit claims on quarterly basis to the Commission for onward submission to DFSD, SBP BSC, Head Office, Karachi for providing government markup subsidy to the HFCs on outstanding principal amount of their performing housing finance portfolio up to expiry of each individual loan.

In case of a loan becoming non-performing, no markup subsidy will be paid after being classified as ‘Loss (where installment, mark-up, interest, profit or principal is overdue by two year or more from the due date)’. HFCs included in GMSS as EAs shall adhere to the classification and provisioning criteria under Schedule – X of NBFC Regulations except above determinant set for “loss”.

The HFC’s claims shall contain particulars of each individual loan along with calculations of subsidy based on relevant KIBOR used as published on SBP website for the GMSS subsidy calculation.

NIC Building, 63 Jinnah Avenue, Blue Area, Islamabad.
Tel: 051-9207091-4, Fax. No. 051-9100473

SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN
SPECIALIZED COMPANIES DIVISION
POLICY, REGULATION AND DEVELOPMENT DEPARTMENT

HFCs shall assign unique number to each loan i.e. “HFC Name—Loan Number” (ABC-12345678). The markup subsidy claim should be duly vetted by internal audit department of the HFC and verified by Appointed Firms.

The duly verified claim along with a certificate from HFC relating to eligibility of borrowers for the subject scheme and correctness of the subsidy amount shall be submitted to the Commission within 7 working days after the end of respective quarter for onward submission to DFSD, SBP BSC, Head Office, Karachi within 8 working days, for payment of subsidy. The claims shall be submitted to the Commission as per the format attached as **Annexure B along with Subsidy Claim Form - Markup Subsidy for Housing Finance**.

4. DFSD, SBP BSC, Head Office, Karachi may scrutinize subsidy claim of HFCs within 15 working days after receipt of complete information from HFCs through the Commission. DFSD may ascertain that calculations of HFCs subsidy claim are correct and applicable KIBOR has been used by the HFCs. Thereafter, DFSD, SBP BSC, Head Office, Karachi shall submit scrutinized subsidy claims’ position of EAs of relevant quarter to Ministry of Finance (MOF) to issue credit advice and to Accounts Department, SBP BSC. Subsequent to receiving payment instructions from MOF to release funds, Accounts Department, SBP BSC will advise SBP BSC Karachi Office, to credit respective HFC’s bank accounts as mentioned on **Annexure-B** (referred above in clause 3), from Government account ‘Non-Food Account 1’ within 7 working days of receipt of payment instructions from MOF.

Akif Saeed
Chairman/Commissioner (SCD)

**Distribution:**
1. Chief Executive Officers, Housing Finance Companies;
2. Ministry of Finance – Internal Finance Wing;
3. The Deputy Governor, State Bank of Pakistan;
4. CEO Naya Pakistan Housing & Development Authority; and
5. Development Finance Support Department of State Bank of Pakistan.

NIC Building, 63 Jinnah Avenue, Blue Area, Islamabad.
Tel: 051-9207091-4, Fax. No. 051-9100473

State Bank of Pakistan
12/23/22, 10:37 AM

State Bank of Pakistan
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Circulars/Notifications / Infrastructure, Housing & SME Finance Department

IH&SMEFD Circular Letter No. 03 of 2021
April 19, 2021

The Presidents/Chief Executives
All Banks/Microfinance Banks/DFIs
Dear Sir(s)/Madam(s)

**Markup Subsidy for Housing Finance**

1. Please refer to IH&SMEFD Circular No. 11 dated October 12, 2020 on the captioned subject and subsequent revision vide Circular No. 03 dated March 25, 2021.
2. In this regard, mechanism for payment of markup subsidy for housing finance has been developed and is attached for the banks/DFIs working as Executing Agencies (EAs) for the subject facility. EAs are advised to submit their claims to Development Finance Support Department (DFSD), SBP BSC, Karachi as per instructions contained in the attached payment mechanism within 15 working days from the end of each Quarter. However, EAs shall submit their claim within 15 working days for the quarter ending December 2020 and March 2021 from the date of issuance of this circular.
3. Other instructions on the subject shall remain unchanged. Please ensure meticulous compliance of the instructions.

Encl:
i. Payment Mechanism of Markup Subsidy for Housing Finance
ii. Annexure A - Markup Subsidy Calculation
iii. Annexure B - 1: Cover Letter for Banks/DFIs
iv. Annexure B - 2: Cover Letter for MFBs
v. Annexure 1 - Subsidy Claim Form

Yours sincerely,
(Dr. Mian Farooq Haq)
Director

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Annexure-A

Government Markup Subsidy Scheme (G-MSS) for Housing Finance

Markup Subsidy Payment Mechanism (MSPM)

Government of Pakistan has Markup Subsidy Scheme to provide concessional housing finance thereby promoting home ownership. State Bank of Pakistan has issued necessary instructions to all commercial banks, microfinance banks and HBFCI (Executing Agencies (EAs)) through IH&SMFED Circular No. 03 dated March 25, 2021 and revised instructions thereof issued from time to time. All loans disbursed under the subject scheme shall be reported to SBP under housing finance.

Under the Scheme, loans are segregated into four tiers: i. Tier 0 (T0) - (a) House up to 125 sq yds (5 Marla) and (b) flat/apartment with maximum covered area of 1,250 sq ft. ii. Tier 1 (T1) - (a) House up to 125 sq yds (5 Marla) with maximum covered area of 850 sq ft and (b) Flat/apartment with maximum covered area of 850 sq ft. iii. Tier 2 (T2) - (a) House up to 125 sq yds (5 Marla) and (b) flat/apartment with maximum covered area of 1,250 sq ft. iv. Tier 3 (T3) - (a) House up to 250 sq yds (10 Marla) and (b) flat/apartment with maximum covered area of 2,000 sq ft.

Pricing for Housing Loans

Loan TiersCustomer PricingBank Pricing
Tier 05% for first 5 years & 7% for next 5 years1 Year KIBOR + 700 BPS
Tier 13% for first 5 years & 5% for next 5 years1 Year KIBOR + 250 BPS
Tier 25% for first 5 years & 7% for next 5 years1 Year KIBOR + 400 BPS (Spread may vary)
Tier 37% for first 5 years & 9% for next 5 years
For loan tenors exceeding 10 years, market rate i.e. bank pricing will be applicable for the period exceeding 10 years.

Procedure for loans disbursements and availing markup subsidy:

EAs shall evaluate financing applications of customers as per parameters of Markup Subsidy Scheme for Housing Finance approved by the Federal Cabinet and circulated by the State Bank of Pakistan to all banks/DFIs vide IH&SMFED Circular No. 03 dated March 25, 2021 and revised from time to time. The financing facility for a borrower shall be sanctioned and disbursed by the EA after completion of documentation formalities. These financing shall be entitled for markup subsidy as prescribed above. No further evaluation on eligibility of borrowers would be conducted by the State Bank of Pakistan.

Calculation of Equally Monthly Installment (EMI) for Borrower

  1. For first five years EMI, amortization schedule would be prepared for full tenor of financing at markup rate i.e. 3%, 5% or 7% depending upon the financing tier.

Infrastructure, Housing & SME Finance Department, SBP Page 1

  1. EMI for next five years i.e. 6th year to 10th year would be on the basis of amortization schedule prepared at the applicable subsidized markup rate (i.e. 5%, 7% or 9% depending upon the financing tier) on outstanding principal for remaining financing tenor.
  2. After 10th year of financing, EMI would be calculated on the basis of amortization schedule at applicable markup rate.

Calculation of Markup Subsidy for Banks

  1. After calculating the EMI for end user, the EAs will calculate the difference to be paid by Government of Pakistan by applying the difference between 1-Year KIBOR + spread and end user markup rate on the outstanding principal.
  2. The banks will calculate the subsidy for the period of markup subsidy i.e. 10 years.

Example of calculations is attached as Annexure A.

Mechanism for Payment of Markup Subsidies:

Payment of subsidy to EAs will be made through SBP’s operational arm viz. Development Finance Support Department (DFSD), SBP BSC, Head Office, Karachi.

EAs shall prepare and submit claims on quarterly basis to DFSD for receiving government markup subsidy on outstanding principal amount of their performing housing finance portfolio up to expiry of each individual loan. In case of a loan becoming non-performing, no markup subsidy will be paid after being classified as ‘Loss’ as per SBP PRs for Housing Finance. The EAs claims shall contain particulars of each individual loan along with calculations of subsidy based on relevant 1-year KIBOR used. For the sake of simplicity, EAs shall assign unique number to each loan i.e. “Bank Name—Loan Number” (ABC-12345678). The markup subsidy claim should be duly vetted by internal audit department of the EA. The audited claim along with a certificate from EA relating to eligibility of borrowers for the subject scheme and correctness of the subsidy amount shall be submitted to DFSD within 15 working days after the end of respective quarter for payment of subsidy. The claims shall be submitted to DFSD as per the format attached as Annexure B (Annexure B-1 for Banks/DFIs and Annexure B-2 for MFBS).

DFSD, SBP BSC shall scrutinize subsidy claim of EAs within 15 working days after receipt of complete information from EAs. DFSD shall ascertain that calculations of EAs subsidy claim are correct and applicable KIBOR has been used by the EAs. Thereafter, DFSD shall submit scrutinized claims to Accounts Department, SBP BSC for release of funds, through Karachi Office, to respective EA account maintained with SBP BSC, Karachi from Government account ‘Non-Food Account 1’.

Banking Inspection Department of State Bank during regular inspection of the EAs shall conduct inspection of their housing finance portfolio on sampling basis using its own sampling techniques. SBP inspectors shall randomly select credit files and review them from the perspective of eligibility of borrowers under the Program, status of loan (regular or NPL) and GOP subsidy claim. The BID inspection report section on ‘Markup Subsidy on Housing Finance’ shall be used as an important input for reviewing the Scheme and assessing its effectiveness in fulfilling the Government objective of promoting home ownership in the country.

Infrastructure, Housing & SME Finance Department, SBP Page 2

# Instalment Calculation under Markup Subsidy Scheme for Housing Finance

## Assumptions for calculations

| Amount of Loan | PKR 3,000,000 |
|----------------|---------------|
| Tier of Scheme | T1            |
| Period (No. of Years) | 20          |
| Total Months | 240           |
| Subsidized Markup Rate during First 5 Years | 3.00% |
| Subsidized Markup Rate during next 5 Years | 5.00% |
| End User Mark-up Rate after 10 Years | 10.75% |

| One Year KIBOR as on April 2, 2021 | 8.25% |
|------------------------------------|-------|
| Bank Spread (assumed)              | 2.50% |
| Annual Bank Markup for Subsidy calculations | 10.75% |

## Equal Monthly Installment

| First 5 Years | PKR 16,638 |
|---------------|------------|
| Next 5 Years  | PKR 19,052 |
| Remaining 10 Years | PKR 24,490 |

## Rate Charged to Customer

| 0 | 3.0 |
|---|-----|
| 61 | 5.0 |
| 121 | 10.8 |

## Instalment Schedule

| Sr. No. | Month       | EMI       | Markup Rate | Mark-up Payment | Principal Payment | Outstanding Principal | Markup Subsidy Rate | Mark-up Subsidy |
|---------|-------------|-----------|-------------|------------------|-------------------|------------------------|---------------------|-----------------|
| 0       |             |           |             |                  |                   | 3,000,000.00           |                     |                 |
| 1       | 30-May-21   | 16,688.76 | 3.00%       | 7,500.00         | 9,188.76          | 2,990,811.24           | 7.75%               | 19,375.00       |
| 2       | 30-Jun-21   | 16,637.65 | 3.00%       | 7,477.03         | 9,160.62          | 2,981,650.62           | 7.75%               | 19,315.60       |
| 3       | 31-Jul-21   | 16,637.65 | 3.00%       | 7,454.13         | 9,183.52          | 2,972,467.10           | 7.75%               | 19,256.40       |
| 4       | 31-Aug-21   | 16,637.65 | 3.00%       | 7,431.17         | 9,206.48          | 2,963,260.63           | 7.75%               | 19,197.11       |
| 5       | 30-Sep-21   | 16,637.65 | 3.00%       | 7,408.15         | 9,229.49          | 2,954,031.13           | 7.75%               | 19,137.71       |
| 6       | 31-Oct-21   | 16,637.65 | 3.00%       | 7,385.08         | 9,252.57          | 2,944,778.56           | 7.75%               | 19,078.12       |
| 7       | 30-Nov-21   | 16,637.65 | 3.00%       | 7,361.95         | 9,275.70          | 2,935,502.87           | 7.75%               | 19,018.30       |
| 8       | 31-Dec-21   | 16,637.65 | 3.00%       | 7,338.76         | 9,298.89          | 2,926,203.98           | 7.75%               | 18,958.40       |
| 9       | 31-Jan-22   | 16,637.65 | 3.00%       | 7,315.51         | 9,322.14          | 2,916,881.84           | 7.75%               | 18,898.40       |
| 10      | 28-Feb-22   | 16,637.65 | 3.00%       | 7,292.20         | 9,345.44          | 2,907,536.40           | 7.75%               | 18,838.20       |
| 11      | 31-Mar-22   | 16,637.65 | 3.00%       | 7,268.84         | 9,368.80          | 2,898,167.60           | 7.75%               | 18,777.84       |
| 12      | 30-Apr-22   | 16,637.65 | 3.00%       | 7,245.42         | 9,392.23          | 2,888,775.37           | 7.75%               | 18,717.33       |
| 13      | 31-May-22   | 16,637.65 | 3.00%       | 7,221.94         | 9,415.71          | 2,879,359.67           | 7.75%               | 18,656.67       |
| 14      | 30-Jun-22   | 16,637.65 | 3.00%       | 7,198.40         | 9,439.25          | 2,869,920.42           | 7.75%               | 18,595.86       |
| 15      | 31-Jul-22   | 16,637.65 | 3.00%       | 7,174.80         | 9,462.84          | 2,860,457.57           | 7.75%               | 18,534.90       |
| 16      | 31-Aug-22   | 16,637.65 | 3.00%       | 7,151.14         | 9,486.50          | 2,850,971.07           | 7.75%               | 18,473.79       |
| 17      | 30-Sep-22   | 16,637.65 | 3.00%       | 7,127.43         | 9,510.22          | 2,841,460.86           | 7.75%               | 18,412.52       |
| 18      | 31-Oct-22   | 16,637.65 | 3.00%       | 7,103.65         | 9,533.99          | 2,831,926.86           | 7.75%               | 18,351.10       |
| 19      | 30-Nov-22   | 16,637.65 | 3.00%       | 7,079.82         | 9,557.83          | 2,822,369.04           | 7.75%               | 18,289.53       |
| 20      | 31-Dec-22   | 16,637.65 | 3.00%       | 7,055.92         | 9,581.72          | 2,812,787.31           | 7.75%               | 18,227.80       |
| 21      | 31-Jan-23   | 16,637.65 | 3.00%       | 7,031.97         | 9,605.68          | 2,803,181.64           | 7.75%               | 18,165.92       |
| 22      | 28-Feb-23   | 16,637.65 | 3.00%       | 7,007.95         | 9,629.69          | 2,793,551.94           | 7.75%               | 18,103.88       |
| 23      | 31-Mar-23   | 16,637.65 | 3.00%       | 6,983.88         | 9,653.77          | 2,783,898.18           | 7.75%               | 18,041.69       |
| 24      | 30-Apr-23   | 16,637.65 | 3.00%       | 6,959.75         | 9,677.90          | 2,774,220.28           | 7.75%               | 17,979.34       |
| 25      | 31-May-23   | 16,637.65 | 3.00%       | 6,935.55         | 9,702.09          | 2,764,518.19           | 7.75%               | 17,916.84       |
| 26      | 30-Jun-23   | 16,637.65 | 3.00%       | 6,911.30         | 9,726.35          | 2,754,791.84           | 7.75%               | 17,854.18       |
| 27      | 31-Jul-23   | 16,637.65 | 3.00%       | 6,886.98         | 9,750.67          | 2,745,041.17           | 7.75%               | 17,791.36       |
| 28      | 31-Aug-23   | 16,637.65 | 3.00%       | 6,862.60         | 9,775.04          | 2,735,266.13           | 7.75%               | 17,728.39       |
| 29      | 30-Sep-23   | 16,637.65 | 3.00%       | 6,838.17         | 9,799.48          | 2,725,466.65           | 7.75%               | 17,665.26       |
| 30      | 31-Oct-23   | 16,637.65 | 3.00%       | 6,813.67         | 9,823.98          | 2,715,642.67           | 7.75%               | 17,601.97       |
| 31      | 30-Nov-23   | 16,637.65 | 3.00%       | 6,789.11         | 9,848.54          | 2,705,794.13           | 7.75%               | 17,538.53       |
| 32      | 31-Dec-23   | 16,637.65 | 3.00%       | 6,764.49         | 9,873.16          | 2,695,920.97           | 7.75%               | 17,474.92       |
| 33      | 31-Jan-24   | 16,637.65 | 3.00%       | 6,739.80         | 9,897.84          | 2,686,023.13           | 7.75%               | 17,411.16       |
| 34      | 29-Feb-24   | 16,637.65 | 3.00%       | 6,715.06         | 9,922.59          | 2,676,100.54           | 7.75%               | 17,347.23       |
| 35      | 31-Mar-24   | 16,637.65 | 3.00%       | 6,690.25         | 9,947.39          | 2,666,153.15           | 7.75%               | 17,283.15       |
| 36      | 30-Apr-24   | 16,637.65 | 3.00%       | 6,665.38         | 9,972.26          | 2,656,180.89           | 7.75%               | 17,218.91       |
| 37      | 31-May-24   | 16,637.65 | 3.00%       | 6,640.45         | 9,997.19          | 2,646,183.69           | 7.75%               | 17,154.50       |
| 38      | 30-Jun-24   | 16,637.65 | 3.00%       | 6,615.46         | 10,022.19         | 2,636,161.51           | 7.75%               | 17,089.94       |
| 39      | 31-Jul-24   | 16,637.65 | 3.00%       | 6,590.40         | 10,047.24         | 2,626,114.26           | 7.75%               | 17,025.21       |
| 40      | 31-Aug-24   | 16,637.65 | 3.00%       | 6,565.29         | 10,072.36         | 2,616,041.91           | 7.75%               | 16,960.32       |
| 41      | 30-Sep-24   | 16,637.65 | 3.00%       | 6,540.10         | 10,097.54         | 2,605,944.36           | 7.75%               | 16,895.27       |
| 42      | 31-Oct-24   | 16,637.65 | 3.00%       | 6,514.86         | 10,122.78         | 2,595,821.58           | 7.75%               | 16,830.06       |
| 43      | 30-Nov-24   | 16,637.65 | 3.00%       | 6,489.55         | 10,148.09         | 2,585,673.49           | 7.75%               | 16,764.68       |
| 44      | 31-Dec-24   | 16,637.65 | 3.00%       | 6,464.18         | 10,173.46         | 2,575,500.03           | 7.75%               | 16,699.14       |
| 45      | 31-Jan-25   | 16,637.65 | 3.00%       | 6,438.75         | 10,198.90         | 2,565,301.13           | 7.75%               | 16,633.44       |
| 46      | 28-Feb-25   | 16,637.65 | 3.00%       | 6,413.25         | 10,224.39         | 2,555,076.74           | 7.75%               | 16,567.57       |
| 47      | 31-Mar-25   | 16,637.65 | 3.00%       | 6,387.69         | 10,249.95         | 2,544,826.79           | 7.75%               | 16,501.54       |
| 48      | 30-Apr-25   | 16,637.65 | 3.00%       | 6,362.07         | 10,275.58         | 2,534,551.21           | 7.75%               | 16,435.34       |
| 49      | 31-May-25   | 16,637.65 | 3.00%       | 6,336.38         | 10,301.27         | 2,524,249.94           | 7.75%               | 16,368.98       |
| 50      | 30-Jun-25   | 16,637.65 | 3.00%       | 6,310.62         | 10,327.02         | 2,513,922.92           | 7.75%               | 16,302.45       |
| 51      | 31-Jul-25   | 16,637.65 | 3.00%       | 6,284.81         | 10,352.84         | 2,503,570.08           | 7.75%               | 16,235.75       |
| 52      | 31-Aug-25   | 16,637.65 | 3.00%       | 6,258.93         | 10,378.72         | 2,493,191.36           | 7.75%               | 16,168.89       |

Annexure
Sr. No.MonthEMIMarkup RateMark-up PaymentPrincipal PaymentOustanding PrincipalMarkup Subsidy RateMark-up Subsidy
5330-Sep-2516,637.653.00%6,232.9810,404.672,482,786.707.75%16,101.86
5430-Oct-2516,637.653.00%6,206.9710,430.682,472,356.027.75%16,034.66
5530-Nov-2516,637.653.00%6,180.8910,456.762,461,899.267.75%15,967.30
5631-Dec-2516,637.653.00%6,154.7510,482.902,451,416.377.75%15,899.77
5731-Jan-2616,637.653.00%6,128.5410,509.102,440,907.267.75%15,832.06
5828-Feb-2616,637.653.00%6,102.2710,535.382,430,371.897.75%15,764.19
5931-Mar-2616,637.653.00%6,075.9310,561.722,419,810.177.75%15,696.15
6030-Apr-2616,637.653.00%6,049.5310,588.122,409,222.057.75%15,627.94
6131-May-2619,051.975.00%10,038.439,013.552,400,208.505.75%11,544.19
6230-Jun-2619,051.975.00%10,000.879,051.112,391,157.405.75%11,501.00
6331-Jul-2619,051.975.00%9,963.169,088.822,382,068.585.75%11,457.63
6431-Aug-2619,051.975.00%9,925.299,126.692,372,941.895.75%11,414.08
6530-Sep-2619,051.975.00%9,887.269,164.722,363,777.175.75%11,370.35
6631-Oct-2619,051.975.00%9,849.079,202.902,354,574.275.75%11,326.43
6730-Nov-2619,051.975.00%9,810.739,241.252,345,333.025.75%11,282.34
6831-Dec-2619,051.975.00%9,772.229,279.752,336,053.275.75%11,238.05
6931-Jan-2719,051.975.00%9,733.569,318.422,326,734.855.75%11,193.59
7028-Feb-2719,051.975.00%9,694.739,357.252,317,377.605.75%11,148.94
7131-Mar-2719,051.975.00%9,655.749,396.232,307,981.375.75%11,104.10
7230-Apr-2719,051.975.00%9,616.599,435.392,298,545.985.75%11,059.08
7331-May-2719,051.975.00%9,577.279,474.702,289,071.285.75%11,013.87
7430-Jun-2719,051.975.00%9,537.809,514.182,279,557.115.75%10,968.47
7531-Jul-2719,051.975.00%9,498.159,553.822,270,003.295.75%10,922.88
7631-Aug-2719,051.975.00%9,458.359,593.632,260,409.665.75%10,877.10
7730-Sep-2719,051.975.00%9,418.379,633.602,250,776.065.75%10,831.13
7831-Oct-2719,051.975.00%9,378.239,673.742,241,102.325.75%10,784.97
7930-Nov-2719,051.975.00%9,337.939,714.052,231,388.275.75%10,738.62
8031-Dec-2719,051.975.00%9,297.459,754.522,221,633.745.75%10,692.07
8131-Jan-2819,051.975.00%9,256.819,795.172,211,838.585.75%10,645.33
8229-Feb-2819,051.975.00%9,215.999,835.982,202,002.605.75%10,598.39
8331-Mar-2819,051.975.00%9,175.019,876.962,192,125.635.75%10,551.26
8430-Apr-2819,051.975.00%9,133.869,918.122,182,207.525.75%10,503.94
8531-May-2819,051.975.00%9,092.539,959.442,172,248.075.75%10,456.41
8630-Jun-2819,051.975.00%9,051.0310,000.942,162,247.135.75%10,408.69
8731-Jul-2819,051.975.00%9,009.3610,042.612,152,204.525.75%10,360.77
8831-Aug-2819,051.975.00%8,967.5210,084.462,142,120.075.75%10,312.65
8930-Sep-2819,051.975.00%8,925.5010,126.472,131,993.595.75%10,264.33
9031-Oct-2819,051.975.00%8,883.3110,168.672,121,824.925.75%10,215.80
9130-Nov-2819,051.975.00%8,840.9410,211.042,111,613.895.75%10,167.08
9231-Dec-2819,051.975.00%8,798.3910,253.582,101,360.305.75%10,118.15
9331-Jan-2919,051.975.00%8,755.6710,296.312,091,064.005.75%10,069.02
9428-Feb-2919,051.975.00%8,712.7710,339.212,080,724.795.75%10,019.68
9531-Mar-2919,051.975.00%8,669.6910,382.292,070,342.505.75%9,970.14
9630-Apr-2919,051.975.00%8,626.4310,425.552,059,916.955.75%9,920.39
9731-May-2919,051.975.00%8,582.9910,468.992,049,447.975.75%9,870.44
9830-Jun-2919,051.975.00%8,539.3710,512.612,038,935.365.75%9,820.27
9931-Jul-2919,051.975.00%8,495.5610,556.412,028,378.955.75%9,769.90
10031-Aug-2919,051.975.00%8,451.5810,600.402,017,778.555.75%9,719.32
10130-Sep-2919,051.975.00%8,407.4110,644.562,007,133.995.75%9,668.52
10231-Oct-2919,051.975.00%8,363.0610,688.921,996,445.075.75%9,617.52
10330-Nov-2919,051.975.00%8,318.5210,733.451,985,711.625.75%9,566.30
10431-Dec-2919,051.975.00%8,273.8010,778.181,974,933.445.75%9,514.87
10531-Jan-3019,051.975.00%8,228.8910,823.091,964,110.365.75%9,463.22
10628-Feb-3019,051.975.00%8,183.7910,868.181,953,242.185.75%9,411.36
10731-Mar-3019,051.975.00%8,138.5110,913.471,942,328.715.75%9,359.29
10830-Apr-3019,051.975.00%8,093.0410,958.941,931,369.775.75%9,306.99
10931-May-3019,051.975.00%8,047.3711,004.601,920,365.175.75%9,254.48
11030-Jun-3019,051.975.00%8,001.5211,050.451,909,314.725.75%9,201.75
11131-Jul-3019,051.975.00%7,955.4811,096.501,898,218.225.75%9,148.80
11231-Aug-3019,051.975.00%7,909.2411,142.731,887,075.495.75%9,095.63
11330-Sep-3019,051.975.00%7,862.8111,189.161,875,886.335.75%9,042.24
11431-Oct-3019,051.975.00%7,816.1911,235.781,864,650.555.75%8,988.62
11530-Nov-3019,051.975.00%7,769.3811,282.601,853,367.955.75%8,934.78
11631-Dec-3019,051.975.00%7,722.3711,329.611,842,038.355.75%8,880.72
11731-Jan-3119,051.975.00%7,675.1611,376.811,830,661.535.75%8,826.43
11828-Feb-3119,051.975.00%7,627.7611,424.221,819,237.315.75%8,771.92
11931-Mar-3119,051.975.00%7,580.1611,471.821,807,765.495.75%8,717.18
12030-Apr-3119,051.975.00%7,532.3611,519.621,796,245.885.75%8,662.21
12131-May-3124,489.7810.75%16,091.378,398.411,787,847.470.00%-
Sr. No.MonthEMIMarkup RateMark-up PaymentPrincipal PaymentOustanding PrincipalMarkup Subsidy RateMark-up Subsidy
12230-Jun-3124,489.7810.75%16,016.138,473.651,779,373.820.00%-
12331-Jul-3124,489.7810.75%15,940.228,549.561,770,824.260.00%-
12431-Aug-3124,489.7810.75%15,863.638,626.151,762,198.120.00%-
12530-Sep-3124,489.7810.75%15,786.368,703.421,753,494.700.00%-
12631-Oct-3124,489.7810.75%15,708.398,781.391,744,713.310.00%-
12730-Nov-3124,489.7810.75%15,629.728,860.061,735,853.250.00%-
12831-Dec-3124,489.7810.75%15,550.358,939.431,726,913.830.00%-
12931-Jan-3224,489.7810.75%15,470.279,019.511,717,894.320.00%-
13029-Feb-3224,489.7810.75%15,389.479,100.311,708,794.010.00%-
13131-Mar-3224,489.7810.75%15,307.959,181.831,699,612.170.00%-
13230-Apr-3224,489.7810.75%15,225.699,264.091,690,348.090.00%-
13331-May-3224,489.7810.75%15,142.709,347.081,681,001.010.00%-
13430-Jun-3224,489.7810.75%15,058.979,430.811,671,570.200.00%-
13531-Jul-3224,489.7810.75%14,974.489,515.301,662,054.900.00%-
13631-Aug-3224,489.7810.75%14,889.249,600.541,652,454.360.00%-
13730-Sep-3224,489.7810.75%14,803.249,686.541,642,767.820.00%-
13831-Oct-3224,489.7810.75%14,716.469,773.321,632,994.500.00%-
13930-Nov-3224,489.7810.75%14,628.919,860.871,623,133.630.00%-
14031-Dec-3224,489.7810.75%14,540.579,949.211,613,184.430.00%-
14131-Jan-3324,489.7810.75%14,451.4410,038.341,603,146.090.00%-
14228-Feb-3324,489.7810.75%14,361.5210,128.261,593,017.830.00%-
14331-Mar-3324,489.7810.75%14,270.7810,218.991,582,798.830.00%-
14430-Apr-3324,489.7810.75%14,179.2410,310.541,572,488.300.00%-
14531-May-3324,489.7810.75%14,086.8710,402.901,562,085.390.00%-
14630-Jun-3324,489.7810.75%13,993.6810,496.101,551,589.290.00%-
14731-Jul-3324,489.7810.75%13,899.6510,590.131,540,999.170.00%-
14831-Aug-3324,489.7810.75%13,804.7810,685.001,530,314.170.00%-
14930-Sep-3324,489.7810.75%13,709.0610,780.711,519,533.460.00%-
15031-Oct-3324,489.7810.75%13,612.4910,877.291,508,656.170.00%-
15130-Nov-3324,489.7810.75%13,515.0410,974.731,497,681.430.00%-
15231-Dec-3324,489.7810.75%13,416.7311,073.051,486,608.380.00%-
15331-Jan-3424,489.7810.75%13,317.5311,172.251,475,436.140.00%-
15428-Feb-3424,489.7810.75%13,217.4511,272.331,464,163.800.00%-
15531-Mar-3424,489.7810.75%13,116.4711,373.311,452,790.490.00%-
15630-Apr-3424,489.7810.75%13,014.5811,475.201,441,315.300.00%-
15731-May-3424,489.7810.75%12,911.7811,578.001,429,737.300.00%-
15830-Jun-3424,489.7810.75%12,808.0611,681.721,418,055.580.00%-
15931-Jul-3424,489.7810.75%12,703.4111,786.361,406,269.220.00%-
16031-Aug-3424,489.7810.75%12,597.8311,891.951,394,377.270.00%-
16130-Sep-3424,489.7810.75%12,491.3011,998.481,382,378.780.00%-
16231-Oct-3424,489.7810.75%12,383.8112,105.971,370,272.820.00%-
16330-Nov-3424,489.7810.75%12,275.3612,214.421,358,058.400.00%-
16431-Dec-3424,489.7810.75%12,165.9412,323.841,345,734.560.00%-
16531-Jan-3524,489.7810.75%12,055.5412,434.241,333,300.320.00%-
16628-Feb-3524,489.7810.75%11,944.1512,545.631,320,754.690.00%-
16731-Mar-3524,489.7810.75%11,831.7612,658.021,308,096.670.00%-
16830-Apr-3524,489.7810.75%11,718.3712,771.411,295,325.250.00%-
16931-May-3524,489.7810.75%11,603.9612,885.821,282,439.430.00%-
17030-Jun-3524,489.7810.75%11,488.5213,001.261,269,438.170.00%-
17131-Jul-3524,489.7810.75%11,372.0513,117.731,256,320.440.00%-
17231-Aug-3524,489.7810.75%11,254.5413,235.241,243,085.200.00%-
17330-Sep-3524,489.7810.75%11,135.9713,353.811,229,731.390.00%-
17431-Oct-3524,489.7810.75%11,016.3413,473.441,216,257.960.00%-
17530-Nov-3524,489.7810.75%10,895.6413,594.141,202,663.820.00%-
17631-Dec-3524,489.7810.75%10,773.8613,715.921,188,947.910.00%-
17731-Jan-3624,489.7810.75%10,650.9913,838.791,175,109.120.00%-
17829-Feb-3624,489.7810.75%10,527.0213,962.761,161,146.360.00%-
17931-Mar-3624,489.7810.75%10,401.9414,087.841,147,058.520.00%-
18030-Apr-3624,489.7810.75%10,275.7314,214.051,132,844.470.00%-
18131-May-3624,489.7810.75%10,148.4014,341.381,118,503.090.00%-
18230-Jun-3624,489.7810.75%10,019.9214,469.861,104,033.230.00%-
18331-Jul-3624,489.7810.75%9,890.3014,599.481,089,433.750.00%-
18431-Aug-3624,489.7810.75%9,759.5114,730.271,074,703.480.00%-
18530-Sep-3624,489.7810.75%9,627.5514,862.231,059,841.250.00%-
18631-Oct-3624,489.7810.75%9,494.4114,995.371,044,845.890.00%-
18730-Nov-3624,489.7810.75%9,360.0815,129.701,029,716.190.00%-
18831-Dec-3624,489.7810.75%9,224.5415,265.241,014,450.950.00%-
18931-Jan-3724,489.7810.75%9,087.7915,401.99999,048.960.00%-
19028-Feb-3724,489.7810.75%8,949.8115,539.97983,508.990.00%-
Sr. No.MonthEMIMarkup RateMark-up PaymentPrincipal PaymentOustanding PrincipalMarkup Subsidy RateMark-up Subsidy
19131-Mar-3724,489.7810.75%8,810.6015,679.18967,829.810.00%-
19230-Apr-3724,489.7810.75%8,670.1415,819.64952,010.180.00%-
19331-May-3724,489.7810.75%8,528.4215,961.35936,048.820.00%-
19430-Jun-3724,489.7810.75%8,385.4416,104.34919,944.480.00%-
19531-Jul-3724,489.7810.75%8,241.1716,248.61903,695.870.00%-
19631-Aug-3724,489.7810.75%8,095.6116,394.17887,301.700.00%-
19730-Sep-3724,489.7810.75%7,948.7416,541.03870,760.660.00%-
19831-Oct-3724,489.7810.75%7,800.5616,689.21854,071.450.00%-
19930-Nov-3724,489.7810.75%7,651.0616,838.72837,232.730.00%-
20031-Dec-3724,489.7810.75%7,500.2116,989.57820,243.160.00%-
20131-Jan-3824,489.7810.75%7,348.0117,141.77803,101.390.00%-
20228-Feb-3824,489.7810.75%7,194.4517,295.33785,806.060.00%-
20331-Mar-3824,489.7810.75%7,039.5117,450.27768,355.790.00%-
20430-Apr-3824,489.7810.75%6,883.1917,606.59750,749.200.00%-
20531-May-3824,489.7810.75%6,725.4617,764.32732,984.880.00%-
20630-Jun-3824,489.7810.75%6,566.3217,923.46715,061.430.00%-
20731-Jul-3824,489.7810.75%6,405.7618,084.02696,977.410.00%-
20831-Aug-3824,489.7810.75%6,243.7618,246.02678,731.380.00%-
20930-Sep-3824,489.7810.75%6,080.3018,409.48660,321.910.00%-
21031-Oct-3824,489.7810.75%5,915.3818,574.40641,747.510.00%-
21130-Nov-3824,489.7810.75%5,748.9918,740.79623,006.720.00%-
21231-Dec-3824,489.7810.75%5,581.1018,908.68604,098.040.00%-
21331-Jan-3924,489.7810.75%5,411.7119,078.07585,019.980.00%-
21428-Feb-3924,489.7810.75%5,240.8019,248.98565,771.000.00%-
21531-Mar-3924,489.7810.75%5,068.3719,421.41546,349.590.00%-
21630-Apr-3924,489.7810.75%4,894.3819,595.40526,754.190.00%-
21731-May-3924,489.7810.75%4,718.8419,770.94506,983.250.00%-
21830-Jun-3924,489.7810.75%4,541.7219,948.05487,035.190.00%-
21931-Jul-3924,489.7810.75%4,363.0220,126.76466,908.440.00%-
22031-Aug-3924,489.7810.75%4,182.7220,307.06446,601.380.00%-
22130-Sep-3924,489.7810.75%4,000.8020,488.98426,112.410.00%-
22231-Oct-3924,489.7810.75%3,817.2620,672.52405,439.880.00%-
22330-Nov-3924,489.7810.75%3,632.0720,857.71384,582.170.00%-
22431-Dec-3924,489.7810.75%3,445.2221,044.56363,537.610.00%-
22531-Jan-4024,489.7810.75%3,256.6921,233.09342,304.520.00%-
22629-Feb-4024,489.7810.75%3,066.4821,423.30320,881.220.00%-
22731-Mar-4024,489.7810.75%2,874.5621,615.22299,266.000.00%-
22830-Apr-4024,489.7810.75%2,680.9221,808.85277,457.140.00%-
22931-May-4024,489.7810.75%2,485.5522,004.23255,452.920.00%-
23030-Jun-4024,489.7810.75%2,288.4322,201.35233,251.570.00%-
23131-Jul-4024,489.7810.75%2,089.5522,400.23210,851.340.00%-
23231-Aug-4024,489.7810.75%1,888.8822,600.90188,250.430.00%-
23330-Sep-4024,489.7810.75%1,686.4122,803.37165,447.070.00%-
23431-Oct-4024,489.7810.75%1,482.1323,007.65142,439.420.00%-
23530-Nov-4024,489.7810.75%1,276.0223,213.76119,225.660.00%-
23631-Dec-4024,489.7810.75%1,068.0623,421.7295,803.940.00%-
23731-Jan-4124,489.7810.75%858.2423,631.5472,172.400.00%-
23828-Feb-4124,489.7810.75%646.5423,843.2348,329.170.00%-
23931-Mar-4124,489.7810.75%432.9524,056.8324,272.340.00%-
24030-Apr-4124,489.7810.75%217.4424,272.34-0.00%-

Annexure B

{HFC Letter Head}

Reference No. Date

The Executive Director,
Securities and Exchange Commission of Pakistan
NIC Building, 63 Jinnah Avenue, Blue Area, Islamabad

Subject: - Government's Markup Subsidy Scheme for Housing Finance (G-MSS) - Quarterly Services Subsidy Claim Due from the Government of Pakistan

Dear Sir,

In terms of instructions on G-MSS provided by State Bank of Pakistan vide IH&SMED Circular No. 03 dated March 25, 2021 and Securities and Exchange Commission of Pakistan Circular No. _______ dated _______; we forward herewith covering letter (along with soft copy) for G-MSS claims for the period Q2-FY2020-21 on prescribed format (attached as Annexure 1).

Amount in Rupees

Housing Finance Company NameQuarter IDTierNo of casesOutstanding Amount at the quarter endAmount of Subsidy Claim
ABCQ2 FY2020-210
Total

The Housing Finance Company (HFC) certifies that:

  1. Loans against which markup subsidy is claimed are eligible as per instructions of G-MSS and internal due diligence of all of the above-mentioned loans has been carried out at our end.
  2. State Bank of Pakistan (SBP) in collaboration with the Securities and Exchange Commission of Pakistan (SECP) will have the right to recover from HFCs, if it fails to carryout due diligence/ensure compliance of the instructions as detected/observed during inspections/sport checks at later stage by the SECP/third party auditor.
  3. Data submitted in covering letter matches with data submitted in soft data already sent to the Commission. If mismatch of soft copy and data in hardcopy is found at a later stage, SBP and SECP reserve the right to take appropriate action against the Housing Finance Company.
  4. All the above assertions are correct and have also been verified/audited.

Signature of Authorized Signatory
Name:
Designation: {Chief Executive Officer}
Contact:

Signature of Authorized Signatory
Name:
Designation: {Head of Internal Audit}
Contact:

Verified by the Engagement Partner of Appointed Firm in terms of SECP’s Circular XXXXX.

Signature of the Engagement Partner
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SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN
SPECIALIZED COMPANIES DIVISION
POLICY, REGULATION AND DEVELOPMENT DEPARTMENT

No. SC/NBFC-1-226/Circular/2022/                                      March 15, 2022

**Circular No. 5 of 2022**

**Subject: Inclusion of Housing Finance Companies (HFCs) in Government Markup Subsidy Scheme (GMSS) for Housing Finance**

In pursuance of the approval by the Economic Coordination Committee (ECC) and ratification by the Federal Cabinet on January 11, 2022, the State Bank of Pakistan (SBP) vide its letter No. IH&SMEDF.IHFD/MPMG/2022-02611 dated March 08, 2022 addressed to the Securities and Exchange Commission of Pakistan (the “Commission”) informed that it has included the Housing Finance Companies (HFCs) duly licensed by the Commission as Executing Agencies (EAs) under the Government Markup Subsidy Scheme (GMSS) for Housing Finance.

In view of the above, the Commission, in exercise of powers conferred under sub-section (3) of section 282B of the Companies Ordinance, 1984 (XLVII of 1984) read with regulations 28(e) of the Non-Banking Finance Companies and Notified Entities Regulations, 2008 is pleased to convey that HFCs duly licensed by the Commission are included as EAs under the GMSS for Housing Finance subject to the eligibility criteria, assessment of financial soundness of HFCs, regulatory monitoring requirements and markup subsidy payment mechanism as may be prescribed by the Commission.

Aamir Khan  
Commissioner (SCD)

**Distribution:**
1. Chief Executive Officers, Housing Finance Companies;
2. Ministry of Finance – Internal Finance Wing;
3. The Deputy Governor, State Bank of Pakistan;
4. Development Finance Support Department of State Bank of Pakistan;
5. Chairman Naya Pakistan Housing & Development Authority

NIC Building, 63 Jinnah Avenue, Blue Area, Islamabad.  
Tel: 051-9207091-4, Fax. No. 051-9100473

# REGULATIONS FOR THE CONTROL OF INSECTICIDES, FUNGICIDES AND OTHER PESTICIDES

## PART I—GENERAL PROVISIONS

### 1. Definitions

In these Regulations, unless the context otherwise requires:

- **"Act"** means the Insecticides, Fungicides and Other Pesticides Act, 1968 (No. 58 of 1968).
- **"Approved person"** means a person approved by the Director under section 10 of the Act.
- **"Certified product"** means a product which has been certified by the Director under section 13 of the Act.
- **"Director"** means the Director of Agriculture, or any other officer appointed by the Minister to exercise the powers and perform the functions of the Director under the Act.
- **"Label"** means the label affixed to a container of a pesticide, or any other label, tag, mark, or device used to identify the contents of the container.
- **"Pesticide"** means any substance or mixture of substances intended for preventing, destroying, repelling, or mitigating any pest.
- **"Pest"** means any insect, animal, plant, or microorganism which is harmful to man, animals, plants, or plant products.
- **"Registration"** means registration under section 12 of the Act.
- **"Registered product"** means a product which has been registered under section 12 of the Act.
- **"Retailer"** means a person who sells pesticides to the public.
- **"Wholesaler"** means a person who sells pesticides to retailers or other persons for resale.

### 2. Interpretation

(1) References in these Regulations to a section or subsection of the Act are references to that section or subsection as amended from time to time.

(2) References in these Regulations to a regulation are references to a regulation of these Regulations as amended from time to time.

(3) Words and expressions used in these Regulations and not defined therein shall have the same meanings as in the Act.

### 3. Application

These Regulations apply to all pesticides, whether imported or manufactured in the country, and whether used for agricultural, horticultural, or domestic purposes.

### 4. Powers of the Director

The Director may, by notice in writing, require any person to furnish information, documents, or samples relating to any pesticide, and may enter upon any premises for the purpose of inspecting, sampling, or seizing any pesticide.

### 5. Prohibition on Sale of Unregistered Pesticides

No person shall sell, offer for sale, or distribute any pesticide which is not registered under section 12 of the Act, unless the pesticide is exempted under section 12(2) of the Act.

### 6. Labeling Requirements

Every container of a pesticide shall bear a label which shall contain the following information:

- The name and address of the manufacturer or distributor.
- The common name of the pesticide.
- The active ingredients and their percentages.
- The registration number assigned by the Director.
- The date of manufacture and the expiry date.
- The recommended use and dosage.
- Precautionary statements and first aid measures.
- Any other information required by the Director.

### 7. Record Keeping

Every wholesaler and retailer shall keep records of all pesticides sold, including the name of the product, the quantity sold, the date of sale, and the name and address of the purchaser. These records shall be kept for a period of not less than three years.

### 8. Reporting of Adverse Effects

Any person who becomes aware of any adverse effect resulting from the use of a pesticide shall immediately report the incident to the Director.

### 9. Inspection and Sampling

The Director or any authorized officer may, at any time, enter upon any premises where pesticides are stored, sold, or used, and may inspect, sample, or seize any pesticide for the purpose of testing or analysis.

### 10. Penalties

Any person who contravenes any provision of these Regulations shall be liable on conviction to a fine not exceeding five thousand dollars or to imprisonment for a term not exceeding six months, or to both.

---

## PART II—REGISTRATION AND CERTIFICATION

### 11. Application for Registration

An application for registration of a pesticide shall be made in the prescribed form and shall include:

- A description of the pesticide.
- The proposed use and dosage.
- The results of any tests conducted on the pesticide.
- Any other information required by the Director.

### 12. Requirements for Registration

The Director may register a pesticide only if he is satisfied that:

- The pesticide is effective for its intended purpose.
- The pesticide is safe for use when applied according to the label instructions.
- The pesticide will not cause undue harm to the environment or non-target organisms.
- The pesticide complies with all labeling and packaging requirements.

### 13. Certification of Products

The Director may certify a pesticide as a "certified product" if he is satisfied that the product meets the standards for quality, purity, and efficacy established by the Director.

### 14. Renewal of Registration

The registration of a pesticide shall be valid for a period of five years and may be renewed upon application and payment of the prescribed fee.

### 15. Suspension or Revocation of Registration

The Director may suspend or revoke the registration of a pesticide if:

- The pesticide is found to be ineffective or unsafe.
- The manufacturer or distributor has failed to comply with any provision of the Act or these Regulations.
- The pesticide has been mislabeled or misrepresented.

---

## PART III—DISTRIBUTION AND SALE

### 16. Licensing of Wholesalers and Retailers

Every person who intends to sell pesticides shall obtain a license from the Director. The license shall specify the types of pesticides the licensee is authorized to sell.

### 17. Conditions of License

A license to sell pesticides may be subject to conditions imposed by the Director, including:

- Restrictions on the types or quantities of pesticides that may be sold.
- Requirements for training or certification of personnel.
- Obligations to maintain records and report sales.

### 18. Prohibition on Sale to Unauthorized Persons

No retailer shall sell any pesticide to a person who is not authorized to use the pesticide under the Act or these Regulations.

### 19. Sale of Restricted Pesticides

Restricted pesticides may only be sold to persons who have been trained and certified by the Director or an approved person.

### 20. Packaging and Storage

Pesticides shall be packaged and stored in a manner that prevents contamination, leakage, or accidental exposure. Containers shall be clearly labeled and sealed.

---

## PART IV—USE AND HANDLING

### 21. Safe Use of Pesticides

All pesticides shall be used in accordance with the label instructions and any additional guidance provided by the Director.

### 22. Personal Protective Equipment

Persons using pesticides shall wear appropriate personal protective equipment, including gloves, goggles, and respirators, as specified on the label.

### 23. Precautions for Application

Pesticides shall not be applied during adverse weather conditions (e.g., high winds, rain) unless specifically authorized by the label.

### 24. Disposal of Containers

Empty containers of pesticides shall be triple-rinsed and disposed of in accordance with the Director’s guidelines. Containers shall not be reused for other purposes.

### 25. Reporting of Accidents

Any accident or incident involving the use of a pesticide shall be reported immediately to the Director.

---

## PART V—INSPECTION AND ENFORCEMENT

### 26. Powers of Officers

Authorized officers may:

- Enter any premises where pesticides are stored, sold, or used.
- Inspect, sample, or seize any pesticide.
- Require any person to produce records or documents.
- Issue notices requiring corrective action.

### 27. Penalties for Non-Compliance

Any person who fails to comply with a notice issued under these Regulations shall be liable to a fine not exceeding two thousand dollars or to imprisonment for a term not exceeding three months, or to both.

### 28. Appeals

Any person aggrieved by a decision of the Director may appeal to the Minister within thirty days of the decision.

---

## PART VI—GENERAL

### 29. Amendment of Regulations

The Director may, with the approval of the Minister, amend these Regulations by notice in the Gazette.

### 30. Commencement

These Regulations shall come into operation on the date of their publication in the Gazette.

---

**Signed by the Director of Agriculture**

**Date: [Date of Publication]**

**Gazette No.: [Gazette Number]**
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