ISLAMABAD Aug 30: The House Building Finance Corporation (HBFC), which has resumed its loaning operations recently after a two-year gap under a remodelled Islamic policy, is facing the prospects of downsizing.

Sources said the move was on the cards even though the corporation was understaffed.

No new recruitment has been allowed despite the corporation being run short of 400-plus staff than the authorized strength.

The overall performance of the HBFC, when compared with other public sector DFIs, has been satisfactory. Its chairman has recently announced a Rs2 billion loaning package.

The advancing procedures of the corporation, which were last simplified in 1989, are further being reshaped to facilitate the clients.

According to official sources, who chose not to be identified, against the authorized strength of over 1600, the corporation is being run by only 1,200 staff countrywide.

Some contractual employees recruited by the previous political government are still there.

The district-wise recovery targets of the HBFC have been up to the mark as the district Islamabad alone had achieved Rs4 million recovery during the current year, the sources said.

The ministry of finance is believed to have agreed with the IMF to cut the size of HBFC establishment at least by 200 employees, to restructure it.

The sources said the corporation chief, Mr S. Usman Ali, has so far resisted the move on the plea that the corporation is left with the bare minimum staff.

If this strength was further reduced, it would negatively affect the corporation’s performance.

The HBFC is the only public-sector DFI which has put its business on Islamic economic lines, by successfully introducing profit and loss sharing scheme of “Mudariba and Musharika”. Its clientele has been on the rise for quite some time, the sources said.

An amount of Rs250 million has been recovered out of the Rs1,250 million loaned to Pakistan Housing Authority during the Nawaz Sharif government. The remaining amount is also expected to be retrieved in due course.