Housing finance targets

This refers to the news report ‘Banks to face fines on falling sort of housing finance targets’ (July 7). This is an attack on the freedom of trade. In a free economy, the state can’t tell banks how to carry out their business. These financial institutions have to safeguard the interests of their shareholders and depositors while granting loans to various clients. Undue pressure on banks indicates that effective demand for loans for home construction does not exist. Also, the loan approved under such circumstances will not serve the original purpose. It will be an unfortunate waste of resources since the beneficiaries of the scheme will be people who can afford bank loans, pay instalments and live in fancy houses. In short, the elite and upper middle class will be the beneficiaries of the low-cost housing scheme. One fails to understand why the government is adamant to waste the already scarce resources when this money can be used more productively in the industrial, agriculture, health and education sectors.

Abdul Majeed

Islamabad