Government is all set to revive housing finance companies'

The government is all set to revive housing finance companies (HFCs) within the next 12 to 14 months, according to Kamran Shehzad, Deputy Governor, State Bank of Pakistan (SBP).

These companies were de-activated in 2003-04.

Speaking at a seminar on the 'Role of Construction and its Allied Industries in Economy', organised by the Association of Builders and Developers (Abad)of Pakistan at Abad House here, avoiding to disclose the line of action in this regard, he said.

"The limit of paid up capital and other modalities are going to be finalised soon, and the central bank would ensure that the HFCs are operational once again." He said: "Since the establishment of Housing Advisory Council some 10 years back, the SBP has been working in close co-operation with the construction industry because of its vital role in the revival of economy." He expressed optimism over the country's economic situation, saying that although the inflation rate has declined to 10 percent, from 25 percent, more efforts have to be made to restrict the inflation rate to single digit.

He termed the law and order situation and inflated oil prices as big challenges for the country, saying that the government had drafted its budget when oil prices stood at $75 per barrel and now it has reached the peak and currently roaming at $105 per barrel in international markets.

"In spite of these detriments, the country will register 4 percent growth in the ongoing fiscal year as we are expecting to achieve $30 billion mark on account of remittances in this year," he said.

Shehzad further said the SBP has established separate department for consumer financing and the rules in this regard and mortgage guidelines would also be drafted soon.

He also suggested to Abad to make efforts for technology-based construction industry besides promoting corporate culture in this sector.

Earlier, Mohsin Sheikhani, Chairman of Abad, urged the authorities to facilitate builders to develop low-cost housing societies, saying that there is a need of over 10 million houses in the country and the same is increasing by 0.2 million per annum.

He said the builders are facing immense financial problems, which put the projects in uncertain state, and added that the authorities should facilitate commercial banks to start housing finance for construction industry.

Zaigham Mahmood Rizvi, advisor, infrastructure & housing finance, SBP, said the fiscal authority should provide cost subsidy to revive the industry as the construction sector is far behind others South Asian countries.

He suggested to the builders' association to establish its research department to spread awareness and make its members updated about the latest developments across the globe.

The seminar was accompanied with an exhibition where several stalls of allied industry were placed at Abad House