PSM production capacity reaches 48 percent, claims government: National Assembly body discusses HBFC matters

The government claimed on Tuesday that Pakistan Steel Mills (PSM) production capacity had reached 48 percent due to bailout package given to it on the approval of the Economic Co-ordination Committee (ECC) of the Cabinet. This was stated by Secretary Privatisation Commission Ahmed Nawaz Sukhera during the meeting of National Assembly's Standing Committee on Finance which was held under the chairmanship of MNA Omer Ayub.
He maintained that bailout package for the revival of PSM was proposed to the ECC by Privatisation Commission. "The committee members wanted to know the process adopted by the government for selection of public sector entity for privatisation as people have raised question on transaction of profit-making organisations." "Peoples are questioning even ruling party's members that why the government has decided to sell profit-making entities instead of loss-making units," MNA Qaisar Sheikh stated.
Secretary Privatisation said that Cabinet Committee on Privatisation decided about the mode of privatisation as well as which entity was to be privatised in the first go. The committee's meeting convened to get briefing on House Building Finance Corporation (HBFC) and to discuss the matters regarding to know the public opinion on the ongoing privatisation process of national institution. It was informed that the government had appointed Pervez Saeed as new managing director of HBFC with the purpose of turning around the entity.
The Secretary Finance said the government was in the process of establishing Mortgage Refinancing Facility Company (MRFC) to meet the financing requirements of borrowers for houses construction. He added that HBFC had not been priority for the government but now with the appointment of MD, the required measures were being taken to fix the liquidity problems.
Finance Ministry has already approved conversion of liabilities of HBFC as well as Zarai Taraqiati Bank Limited (ZTBL) into liquidity and now the case is under process with the State Bank of Pakistan. HBFC MD Pervez Saeed said there was a shortfall of eight million housing units in Pakistan but the mortgage portfolio had been very low, adding that total mortgage portfolio was Rs 53 billion out of which Rs 12 billion was share of HBFC.