ISLAMABAD, June 15: The government has decided to stop booking of vehicles by dealers and manufacturers on 100 per cent advance payment and to extend house building loans to people of rural areas from next year. The decisions were taken at a recent meeting of the federal cabinet. Since the two measures have no budgetary impact, these would be announced soon separately after putting in place required procedures, a senior finance ministry official told Dawn.

The cabinet has directed the ministry of industries and production to streamline the process of booking and delivery of locally made cars.

The ministry was also directed to put in place, in consultation with stakeholders, an alternative and viable option ‘like introducing a ballot scheme for booking of cars on 10 per cent advance keeping in view the production capacity of each manufacturer,’ instead of the current practice of 100 per cent advance payment.

The cabinet was informed that manufacturers were booking new cars on 100 per cent advance payment but even then they took up to one year for delivery. This was resulting in blockade of public capital which could otherwise be used for investments in other sectors.

The cabinet directed the commerce ministry to ‘make conditionalities in the forthcoming trade policy for import of vehicles by overseas Pakistanis’.

The cabinet asked the finance ministry to direct the House Building Finance Corporation (HBFC) to start extending loans to rural areas for construction, extension and renovation of houses. Currently, the HBFC facility is available only in urban centres.

The cabinet directed the provincial governments to ensure maximum supply of wheat to mills for full capacity utilization to smoothen flour supplies throughout the country. The provinces were also directed to ensure that wheat was sold only to mills.