HBFC’s privatization to be finalized by end of FY22

January 14, 2022: The privatization of House Building Finance Corporation (HBFC) will be finalized by the June of this year, Ministry of Privatization informed the Senate Standing Committee on Privatization in a meeting held under the Chairmanship of Senator Shammim Afridi here at Parliament House on Thursday, a press release said yesterday.

Discussing the Privatization programme of HBFC, the ministry informed the committee that HBFC was corporatized in 2007 and the Government of Pakistan and State Bank of Pakistan holds 9.69pc and 90pc shares respectively in this corporation. The major function of HBFC was to provide home loan facilities to lower and middle-class sections of the country, they added. As of June 2021, the net assets of HBFC are 20 billion rupees. Senator Aon Abbas inquired the ministry what causes the delay in the privatization of this corporation. Minister for Privatization informed the committee that the ministry is dependent on the Finance Ministry and State Bank of Pakistan for privatization of corporation and this is why privatization of HBFC has been delayed so far. However, the privatization of HBFC will be finalized by the June of this year, the ministry informed.

During the meeting, the committee was briefed by Ministry on the undergoing privatization programme of the Heavy Electrical Complex (HEC). The ministry explained that HEC was established in 1991 and its major function was to manufacture transformers. The HEC is owned by the ministry of industries and production, they added. However, currently, the HEC only carries repairing work and cannot manufacture new transformers due to lack of capital, they further added. The committee was informed about the main reasons behind the privatization of HEC. The ministry also informed that the bidding of HEC will be finalized till 19th January 2022. The chairman committee directed the ministry to invite senators to the bidding ceremony of HEC.

While discussing the Privatization Programme of First Women Bank, the Ministry informed the committee that First Women Bank was established in 1989 and 83pc of its shares are held by the Government of Pakistan and 2pc by the National Bank of Pakistan (NBP). The main focus of this bank was to meet the special needs of women. In 1996, speculation of transaction in foreign trade cost 31 crore rupees loss to the Bank, the ministry informed. The bank has a total of 42 branches in the country and a paid-up capital of Rs.4.1 billion as un-audited financials 2020, they added. The ministry also informed the committee that the Ministry of Finance has given the deadline till December 2022 for the privatization of the bank. The Chairman Committee was of opinion that hurdles in the privatization of corporations must be removed so that the country can get rid of these loss-making corporations.

The meeting was attended by Senator Rana Mahmood Ul Hassan, Senator Syed Muhammad Sabir Shah, Senator Anwar Lal Dean, Senator Molvi Faiz Muhammad, and Senator Aon Abbas and Minister for Privatization Mian Mohammed Soomro and other officials of the ministry as well.

Press Release

 

 

Posted on: 2022-01-14T12:21:32+05:00

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