presently Governance in Pakistan is promoting housing sector and offering incentives to construction sector. this effort will definitely help the researchers

1. In the Name of Allah, the Most Beneficent,
The Most Merciful

2. By
Tauqeer Ahmed
IRS
2

3.  Introduction
 Demographic Perspective
◦ Urbanization
 Housing in Pakistan-Key Facts
◦ National Housing Policy 2001
 Challenges
 Present Govt Measures
◦ Low cost housing scheme
 Conclusion
 Recommendations
3

4.  Housing is third basic human need
 Adequate Shelter for All-UN declaration for Human
Rights recognized.
 Housing- a productive sector of economy.
 Poorest sections of population in Pakistan live in
slums resulting in multiple socio-economic
problems
 Affordability is the real challenge.
4National Housing Policy 2001

5.  Housing is an economic activity, rather than a
social approach
 Housing measures lacked master planning
 Housing P&D lacks situation analysis.
 Public sector slumber gave way to housing mafia
 Lack of involvement of stakeholders especially
community; a disjointed approach
5

6.  The demand-Supply gap has resulted into serious
social repercussions
◦ Turned more than half of urban land into
squatter settlements
◦ Eating away the agricultural land of the country
◦ Threatened national food security
◦ Caused huge budgetary deficits
6

7. 7
Mohammad Ali Trimzi Reseach
Paper

8.  Pakistan has one of the highest population growth
rates in the world.
 Urbanization
◦ Approx. population is 180 million with 1/3rd
living in urban areas.
◦ The figure will rise to 50% by 2025
 The urban population growth rate is 4.8 % per
annum.
◦ 42 % lives in metropolis
◦ Half of which is concentrated in Karachi.
8National Housing Authority

9. 9www.google.com

10.  Housing is a process.
 The important ingredients include
 land,
 infrastructure,
 building materials
 technology and
 means of access.
 community infrastructure
10

11.  The housing sector is engine of growth in GDP as it
mobilizes more than 40 allied industries. Like
◦ Cement
◦ Iron& Steel
◦ Furniture
◦ Sanitary items
◦ Brick Kilns
◦ Goods Transport
◦ Service industry-labor, engineering, marketing,
interior designing and architecture
11

12. 12
Total no. of units 19,211,738
Persons per unit 6.80
Persons per room 3.3
Semi Pucca housing units
%
40
Pucca Houses% 21
Kutcha Houses% 39
Owned housing units% 81.19
Houses in urban areas 32.3%
Houses in rural areas 67.7%
Federal Bureau of statistics

13.  Current construction rate is 0.410 m only.
 Gross Housing Demand
 8 million
Current Housing Shortage per annum
 0.680 million
 3 lac people migrate to Karachi annually
◦ Thus overcrowding the metropolitan
13ministry of housing & works

14.  Result is squatter settlements called katchi
abadis/slums
◦ Total squatter settlements-539
◦ 49 % of the city population lives in these
settlements
◦ 33 % of population has no access to potable water
and sanitation.
 Encroachments on urban spaces on state
land result in socio economic ills.
14
Mohammad Ali Tirmizi Research
Paper

15. 15world urban forum

16.  Rapid population growth
 Overcrowding of urban places
 Shortage of supply of houses
 Aging housing stock
 Lack of financial resources
 Availability of land
 Improving Rural housing structure to check the
urbanization trend
16

17. Replicating successful PPP models(local and
international)
 Pro poor housing- a change in mindset-
from luxury to need
 Lack of affordable housing is negatively
affecting community's overall health.
 Demand explosion in the next decade.
 Huge sized govt houses on prime lands
17

18.  Credit is the lifeblood of the housing
industry.
 Pakistan’s formal financial sector caters to
less than 2% of all housing transactions.
 The mortgage-to-(GDP) ratio is abysmally
low (0.6%).
 By 2012-13, gross housing finance of all
finance institutions (FDIs) was Rs52.2 billion
as opposed to Rs57.1 billion a year ago.
 Weak foreclosure laws
18The Express Tribune

19.  Positive Aspects
◦ Gap filler
◦ Economic Activity
 Economic multiplier
 Seasonal employment
 Individual Productivity
 Prompt Service delivery
 Diluting public sector monopoly
19

20.  Negative Aspects
 Speculation business
 Unrealistically expensive business
 Huge investments
 Largest Black money reservoir
 No consideration for low income groups
 Ill planned growth lacking urban
planning
20

21.  Mushroom growth of Housing Socities
 Bahria town
 DHA
 Illegal Housing Schemes-102 in Lahore
alone
 Undocumented sector resulting in tax
evasion
 Illegal subdivision of the
suburban(outlying part of city) land
21

22.  Implementation of National Housing Policy
2001
◦ capacity building of formal and informal sector.
◦ R&D to support housing activity for low income
groups.
◦ Resource Mobilization through Government
initiatives, mortgage loans(HBFCL)
◦ Incentives through tax rationalization,
◦ Reduction in property tax and registration
fee.
22National Housing Authority

23. o Indigenous and cost effective approaches-
low income group.
o Development of small and medium size
towns.
o Standardizing the contract procedures.
o Monitoring and regularization- Katchi
Abadis.
23National Housing Authority

24.  Announcement by the Prime Minister in Aug, 2013
 The government to launch low-cost housing
scheme by constructing 500,000 housing units in
five years period across the country
 1,000 clusters of 500 houses each will be
developed on a public-private partnership mode
 3-marla housing schemes on state-owned land
 50 million people will be benefited by Prime
Minister’s Housing Finance Scheme
24Pakistan Housing Authority

25.  Formulation of Working Groups
◦ Working group on Housing Finance and Fiscal
Incentives
◦ Working group on Land Identification, Allocation
and Notification
◦ Working Group on Private Sector Participation and
Innovative Models
◦ Working Group on Policy Planning, Building Codes,
by-laws and Implementation Mechanism.
25PHA

26.  Lead role by Pakistan Housing Authority
 A new company called Apna Ghar Limited
established
 2500 housing units divided among provinces
including federal 500 units each, to be built as a
pilot project
 Provinces to replicate
26PHA

27. Land acquisition underway for pilot projects
 I-16 sector in Islamabad
 Khucklak road Quetta
 Peshawar Charsada Road
 GT Road near Jhelum
 Private developers offered to include their
lands.
27PHA

28.  Fragmented Design Approach
 An extension of the previous govt plan
 Land availability & finance is the greatest hiccup
 Present scheme lacks cohesion with the Housing
Policy 2001
◦ Working groups inventing the wheel again
◦ Concept of PPP even present in the 2001 policy
 No plan to regulate the katchi abadis
 No plan to check the on going trend of destruction
of agri lands
28

29. Pakistan
 is having a shortage of 8 million houses.
A huge population is concentrated in slums.
Although the government has taken an initiative to
provide suitable shelter through low cost housing
schemes all over the country.
However,
 The challenges of
◦ land availability
◦ finance
◦ Inter governmental coordination- are much
compelling too
29

30.  Affordable housing needs public policy tools to
stabilize the demand side of the market
 Master Plans of new settlements for next
hundred years taking urban planners on board
 Concept of inclusionary zoning (catering the
needs of low income group)
 The lands of minorities and evacuee properties
can be used for this scheme
 Huge deposits in WWF, Benevolent fund and EOBI
deposits, can be utilized to overcome financial
constraints
30

31.  Encourage Public-private partnership for low-
income housing
 Encourage investment in low cost housing by
providing incentives-taxation, risk management
◦ Finances through Banks
◦ Zakat Fund can be utilized for housing needs of
the poorest section
31

32.  Changes in the law to allow Banks to hold
Consumer Housing Assets on their books
 Huge govt accommodations be converted into
multi storey apartments
 Introduction of New Construction Technologies
on Duty Free Import basis
 Support the private sector in master planning
instead of red tapeism and stringent bye-laws
32

33. 33