HBFC to support PM’s housing scheme

[Lahore_Real_Estate]

By Syed Irfan Raza
Monday, 22 Mar, 2010

Minister for Housing and Works Rehmatullah Kakar. The housing ministry is now relying on local companies to execute the PM’s Housing Scheme due to the disappointing response by foreign investors. - File photo

ISLAMABAD: The government has sought financial help from the House Building Finance Corporation (HBFC) to make the Prime Minister’s Housing Scheme a successful endeavour.

“The HBFC will initially give housing loans for three schemes, including one in Islamabad and one in Lahore,” the ministry’s spokesperson told Dawn on Sunday.

Minister for Housing and Works Rehmatullah Kakar, HBFC Chairman Azhar A. Jaffery and Managing Director Khalid Aftab agreed at a meeting that the corporation would provide loans for the ministry’s schemes.

“HBFC’s financial assistance in housing projects will help speed up construction and complete the projects at the earliest,” the minister said.

He said the government was facilitating local and foreign investors and construction companies to participate in the prime minister’s Housing for All Programme under which one million housing units would be built at an affordable cost across the country.

The scheme launched in 2008 to build the houses mainly through foreign assistance and joint ventures could not fetch the required investments despite signing of over three dozen memorandums of understanding (MoUs).

According to an official, none of the foreign companies which had signed the MoUs is wiling to invest in Pakistan.

In view of the disappointing response by foreign firms, the housing ministry is relying on local companies, but is unable to meet the target of building one million housing units.

HBFC officials briefed the minister on various aspects of financial assistance to be provided to the low-income group and federal government employees for acquiring and building housing units.

They said the corporation was already offering loans at affordable mark-up and easy instalments to government employees and other people in collaboration with the National Bank.

The officials said a survey of the housing projects would be conducted to make an estimate of the financial help required.