Karachi-There are unlimited opportunities for expansion of housing industry in Pakistan. "But to achieve this, financial institutions have to play an active role", said Hussain Lawai, CEO Arif Habib Bank in a meeting with members of Association of Builders And Developers during a visit to ABAD House Wednesday.

Comparing the loan culture of Pakistan, Europe & USA, Hussain Lawai said that 90% houses in Pakistan are free from any loan; whereas 75% houses in USA & Europe are mortgaged due to the fact that process to obtain loan is very simple and easy there. If all formalities are complete, the loan is sanctioned with in three days while due to strict rules and regulations, the recovery rate is quite high in these countries.

Commenting on economic situation here, Lawai said the worst is over and all indicators are pointing towards a revival and coming months would see substantial overall progress. He said that Arif Habib Bank has financed Real Estate Projects, and would be increasing its financing activities as the housing loans are most secure. Speaking on the occasion, Chairman ABAD Engr Farooq-uz-zaman pointed out that construction industry is providing employment to millions of skilled and unskilled labour and is playing its due role for economic betterment.

In a situation where the backlog of housing units has reached 7.7 million, which is increasing annually, it becomes pertinent to fill the gap between supply and demand, he said. He added that to achieve this goal the infrastructure has to be improved and financing facilities expanded to increase the construction of housing units. Under the current difficult circumstances, he said, the builders and developers are doing their best to fulfill their social responsibility.

ABAD Chairman emphasised that government should provide housing sector affordable financial assistance as it is the only sector which is functioning without loans. Vice Chairman ABAD, Muhammad Arif Siddiq said only a few banks are providing limited short-term financing for housing, otherwise the HBFC was the only institution which was providing long term finance. However, for the last one year, HBFC has stopped disbursement of loans. The banks should divert their attention on long-term financing, he stated.

Regional Chairman ABAD Saleem Kassim Patel said, in Pakistan the ratio of Mortgage Financing with GDP is less then 1%, whereas in China it was 15%, Malaysia 28% and in India it is 9%.The government has to take steps to increase this ratio to 5% in Pakistan so that housing and construction sector could fulfill its responsibility towards the development of the country. Among others ABAD's senior members Nusrat Mirza Chughtai, Asad Thanvi, Idrees Kodvai, Syed Shahid Khairi, Abdul Majeed Adhia, Asim Aleem and Zaheer Qadri also attend the meeting.