The Senate on Wednesday passed ''The Banks (Nationalisation) (Amendment) Bill, 2004'' to further amend the Banks Nationalisation Act 1974 on the plea that the State Bank of Pakistan (SBP) classify House Building Finance Corporation (HBFC) as a non-banking institution.
The statement and objects of the bill further say that the provisions of the Banks Nationalisation Act may not be applied to HBFC and the corporatisation of the institution is also under way, hence the federal government will have to notify HBFC as a non-bank finance company under clause (b) of section 282 of Companies Ordinance, 1984.
It further adds that the name of HBFC is required to be deleted From Banks Nationalisation Act 1974 (XIX) of 1974. Till the corporatisation is enforced, the HBFC Act 1952 shall continue to be applicable, the bill added. After completion of HBFC corporatisation, it shall be registered under Companies Ordinance, 1984 and the HBFC Act 1952 will be repealed and it will attain the status non-bank finance company.
The bill achieved above said objects and was passed by Senate, saying that section 11A of the Banks Nationalisation Act, 1974, pertaining to management of bank applies to financial institutions such as National Development Finance Corporation, Investment Corporation of Pakistan, National Investment Unit Trust, Housing Building Finance Corporation, Small Business Finance Corporation, Regional Development Finance Corporation, First Women Bank Limited and such other financial institutions, as the federal government may, by notification in the official gazette, specify.