The committee directed the corporation to remove major concerns of the housing sector by improving its regulations and fee structure because its lending rate was high.Mr Jafferi told the committee that the corporation's non-performing loan (NPL) portfolio was large because it placed any payment delayed by 51 days on the NPL list.

He, however, said that 90 per cent of HBFC portfolio constituted loans of less than Rs500,000 and the cost of managing such small loans was high.

Members of the committee said that strict regulations, corruption, high interest rate and centralised process for approvals had been causing problems for ordinary citizens in securing HBFC loans.

The meeting was informed that the country was facing a shortfall of 8.2 million houses due to population growth, urbanisation and backlog.

The HBFC was directed to consult the stakeholders and ensure smooth lending on competitive rates, especially to the poor so that the government's agenda of providing shelter to the one million poor is accomplished.

The legislators also objected to the HBFC policy of keeping huge funds in banks, instead of lending to people for house building.

Mr Jafferi said the government should provide land free of cost to the HBFC with complete infrastructure to meet the pro-poor housing requirements.

The representative of the Association of Builders and Developers said the policies of HBFC were not industry friendly and urged the committee to suggest amendments to the credit criteria, terms and conditions issued by the corporation.

The committee observed that the HBFC needed to increase its efficiency by expanding its operations and introducing innovative products to provide solution to the housing problems of lower- and middle-class population.