I would request government to strengthen housing finance in the country and encourage construction activities.
ISLAMABAD: I don’t remember the last time the most important economic issue of housing finance was dealt with in a federal budget — a tradition of negligence broken by the budget this year. Finance Minister Ishaq Dar has, while demonstrating much prudence, specifically dealt with housing finance and the country’s prominent housing finance institution, the House Building Finance Company Limited (HBFC), in this budget. Housing is, indeed, a very big issue and one wishes that this sector of expenditures had been dealt with in more detail. So, the present government surely deserves big thanks!
I would like to request the prime minister, finance minister and other state officials to strengthen housing finance in the country and encourage construction activities. The PML-N government should fully activate the Ministry of Housing and Works to appropriately and proactively address all issues relating to housing. I would also suggest that, after properly authorising the ministry for doing the right job, the ministry might be renamed as Ministry of Housing and Urban Development.
To lend a boost to mortgage financing in the country and stimulate the economy, the finance minister should have also announced making lending in the housing sector a priority lending and should force banks and financial institutions to put a certain portion of their portfolio in this sector.
The HBFC, probably for the first time, caught the attention of the government, as is apparent in the budget of 2014-15. Without a vibrant and active housing finance body, the government cannot achieve any objectives in the housing sector. The HBFC, hence, must be made into a forceful organisation which is able to drive this sector in a competitive and responsible way.
Unfortunately, the person recently appointed as the managing director of the HBFC may not be competent enough to steer the department. He does not seem to be a banker, let alone an investment banker, and has not handled any long-term financing project in the past. The prime minister and finance minister should have perhaps, put more thought into this appointment.
Rizwan Ismail
Published in The Express Tribune, June 5th, 2014.
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