KARACHI, March 26: The figures of the house loans given by the banks during the year 2003 remains a mystery and puzzle as bankers - from the central and commercial banks - offered conflicting answers.

These house loan figures were mentioned by no less a person than the Governor of State Bank of Pakistan Dr Ishrat Husain in his keynote address to 53rd annual general meeting of Institute Bankers of Pakistan on February 21.

The address, published in a small booklet form gives a figure of Rs1.9 billion outstanding house loans in December 2002. This increased to Rs2.1 billion by March 2003 and to Rs3.85 billion by June 2003 when the budget for the current fiscal year was announced.

Construction industry promotion was one of the main themes on which the 2003-04 budget focussed on. Fiscal measures were taken to promote construction industry and steps were spelt out to encourage builders and developers go a big way in housing construction.

As many as 14 banks and financial institutions came out with housing loan products which were launched with much fanfare and media glare. No wonder then the SBP governor in his speech gave a figure of Rs8 billion outstanding loan by September 2003, a jump of more than 100 per cent in just three months.

But by December 2003 this amount of outstanding loan has come down to Rs4.3 billion an abrupt fall of more than 80 per cent in just three months period. House loans are offered for a period of more than five years and it is beyond comprehension of anyone as to how a big amount of Rs3.7 billion was withdrawn or adjusted within three months time.

On enquiry, one of the top dogs of the central bank appreciated the question and said that he had asked his staff to furnish accurate data and information. Another officer in the central bank attributed this figure to the data collected by the off site regulators of the State Bank. He acknowledged the discrepancy and said that off site inspectors of the central bank mixed up the figures of the statements given by the banks.

Being one of the on-site inspectors he claimed to be having correct information and data. But did not share the data with this correspondent. Senior executives including a top person of the two big banks said that house loans are being offered after due scrutiny and ensuring all safeguards. They too believe that total house loans cannot show a jump of Rs4.15 billion in just three months after the presentation of 2003-04 budget.

Whatever the amount, the banks have offered as house loans, the construction industry has not made any headway as was expected after the budget. Cement prices jumped up enormously after getting 25 per cent relief in excise duty by the government in the current fiscal year.

Simultaneously, the prices of steel another vital ingredient of construction industry went up. The government remained as helpless in checking cement and steel prices as it was found in other commodities.

As many as 14 banks and financial institutions are said to have offered attractive housing loan products but are found to be caught up in a rigmarole. Banks are now engaged in an endless debate with the developers and builders with no possible outcome in near future.

Banks want the builders and developers to get themselves rated by the recognized rating agencies. Mostly builders and developers operate as one-man unit or at the best are private partnerships. Hardly half a dozen can be called private construction companies with some resemblance of corporate structure.

The Association of Builders and Developers (ABAD) is engaged in an endless debate on this issue with the State Bank of Pakistan's special housing finance committee that meets once a month.

The provincial governments have not done enough homework to regularize the title and registration process of the property and hence the banks are reluctant to offer loans.

In the current fiscal year's budget, the government employees were given concessions to go for house building. With 3.2 million employees in the federal and provincial governments the builders and developers see tremendous investment prospects even if five to 10 per cent of government employees get house loans.

Those who qualify for house loans from banks are with an assured cash flow either from their jobs or their business and have requisite documents and titles of the land. "You cannot generate employment by serving this microscopic minority," a leader of ABAD said.