THE government has specifically dealt in the federal budget of 2014-2015 with housing finance and the country’s prominent housing finance institution – the House Building Finance Company Limited (HBFC).

Housing is a very big issue; hence in the budget speech the housing issue could have been dealt with in more detail and with greater elaboration. Even then, something in this year’s budget is surely better than nothing.

I would like to request the prime minister and the finance minister to consider a few other steps to strengthen housing finance and increasing the housing and construction activity in the country.

The government may consider fully activating the ministry of housing and works to appropriately and proactively address all the issues relating to housing.

I would also suggest that after properly authorising the ministry for doing the right jobs, the ministry might be renamed as ministry of housing and urban development.

To give an appropriate boost to mortgage financing and thereby stimulating the economy, the finance minister could have announced making lending in the housing sector a priority lending, and forcing banks and financial institutions to put a certain portion of their portfolio in this sector.

The HBFC, probably for the first time, got the right attention of the government in the budget of 2014-15. Without a vibrant and active HBFC, the government will not be able to achieve any objective in the housing sector. The HBFC must be made a forceful organisation which would be able to drive this sector.

M. Rizwan Ismail

Karachi

Published in Dawn, June 15th, 2014