National Status of Peri-Urbanization in Pakistan discusses several key points: 1) Pakistan is rapidly urbanizing, with the urban population expected to reach 45.6% by 2030. However, the distinction between urban and rural is unclear as peri-urban areas on the edges of cities have urban characteristics but are not officially classified as urban. 2) Rapid urbanization is straining infrastructure and services and causing environmental issues like water contamination. It is also challenging administration as multiple agencies have overlapping responsibilities for urban management. 3) The document proposes recommendations in areas like land use, zoning regulations, physical and social infrastructure, and housing to help Pakistan better plan and manage its urbanization.

1. National Status of Peri-Urbanization in
Pakistan
Dr. Vaqar Ahmed
Sustainable Development Policy Institute 1

2. State of Urbanization
1981: 28 % (24 million) 1998: 32.5% (43.5 million) 2010: 36.3% (63.1 million)
2030: 45.6% (121 million)
How clear is the distinction between rural and urban?2

3. Distinction between Urban and Rural
• Definition Issues
– In the first three censuses (1951, 1961, 1972), settlements of
5,000 and above population which had urban characteristics could
be considered as urban
– At the time of 1981, 1998 censuses, definition of urban was
changed to mean only those human settlements which had
municipal governments
– As a result of this change, 1,483 settlements of over 5,000 were
not considered urban in the 1981 Census
3

4. Distinction between Urban and Rural
• Boundaries
– Administrative boundaries of most urban areas do not
include their peri-urban settlements
• Ribbons
– ribbons of development along highways, between major
centers and industrial satellite areas have developed
– These developments have urban characteristics but are
not classified as urban
4

5. Current Characteristics
• Urban areas contribute 78% of GDP
• The pattern of urbanization across provinces exhibits
large variation
• More than half of the total population of the country is
clustered in and around eight cities
• Expanding middle class comprising young generation
• Most smaller towns are located in the neighborhood of
the 1 million plus towns and along the national highway
• Over 63.7% of internal migrants move to urban areas
5

6. Repercussions
• Welfare issues (Ahmed et al. 2011)
– Housing deficit
– Service delivery issues (education & health)
– Infrastructure (transport & energy)
– Growth combined with under or unemployment
• Environmental issues (Planning Commission 2011)
– Water contamination
– Waste management & sanitation
– Various forms of pollution
6

7. Repercussions
• Administrative issues (Haider & Badami 2010)
– Checkered history of local government initiatives
– Poor state of municipal service delivery
– Multiple government agencies in municipal affairs
• Implication for attached towns
• Financing urban development (Planning Commission 2011)
– Reliance on provincial governments
– No attempts to mobilize own resources
– No attempts to mobilize private investment
– Legal framework needs up gradation 7

8. Urban Settlement and Domestic Commerce
Taskforce on Urban Management (2010)
– Downtown and city center development discouraged
– Zoning remains unfriendly:
• density
• high rise
• mixed use development
• commercial uses
– Commercial development is punitively taxed
– Rental market destroyed
– Urban development and domestic commerce – delinked
8

9. Overlap in Urban Management Responsibilities
– Ministry of Environment (devolved)
– Ministry of Housing & Works
– Ministry of Local Governments and Rural
Development (devolved)
– Planning Commission
– Ministry of Communications
Large chunks out of the jurisdiction of above authorities
9

10. Land Records
• Very difficult to obtain and verify land records
• Records maintained by public agencies not enough
proof of ownership
• Pakistani law also recognizes oral gifts as valid
transfers of property
• It also recognizes concept of “benami” ownership
10

11. Public Sector and Urban Policy
• Taskforce on Urban Management
• Framework for Economic Growth
• Provincial Medium-term Development Plans
11

12. Competitiveness and growth
• Promote cluster development [Sialkot, Gujranwala,
Hyderabad]
• Build local government capacity [public-private
interaction]
• Skill development opportunities in urban centers
• Manage energy demand
• Improve legal framework for domestic commerce 12

13. Cities & Clusters
• Agglomeration
• Economies of Scale
• Spatial Comparative Advantages
PESHAWAR
ISLAMABAD
RAWALPINDI
SIALKOT
SARGODHA GUJRANWALA
LAHORE
FAISALABAD
QUETTA MULTAN
Clusters
BAHAWALPUR
Population size
SUKKUR
10M +
5M +
2M +
1M +
0.5M +
HYDERABAD
KARACHI
2011

14. Land Use
• Review unregulated conversion of peri-urban
agricultural/waste land in to housing for identifying the
environmental and social damage
• Expand land supply in urban areas through high density
and mixed use
• Smooth process for the conversion of agricultural/
government/ community lands to urban use
• Reserve state land with metropolitan areas for low-income
housing and deliver this land through market mechanisms
• Privatize state-owned land
• Politics of construction permits and capacity issue
14

15. Byelaws & Zoning Regulations
• Laws and regulations anti-street, anti-pedestrian,
anti-mixed land use, anti-high densities and anti-
public space
• Create a governing body to:
– Monitor standards among property developers
– Regulate property dealers
– Enforce professionally set standards
• Amend the zoning and building regulations and
match the market preferences at different locations
15

16. Byelaws & Zoning Regulations
• Make it mandatory for developers to provide facilities to the
city in return for the use of land (e.g. auditoriums, cultural
centers and related public spaces)
• Review byelaws, such as those levying commercialization
charges, as these have become severe constraint on
development of rental premises for residential and
commercial purposes
• Introduce certification for the property dealers in the formal
sector that ensures a minimum knowledge of property
law, property transference and the dynamics of property
markets
• Emphasize the importance of certification through the media
16
so that these practices infiltrate into the informal sector as

17. Physical Infrastructure – Brief Facts
• 40 per cent water is wasted through leakages/theft
in the water distribution networks
• Weak water treatment facilities
• Sewage is collected through open drains in most of
the cities and discharge into rivers, streams, lakes
and canals without treatment
• Only 5 per cent households have proper access to
municipal garbage collection systems
• Use of public transport discouraged
17

18. Physical Infrastructure – Proposals
• Discontinue building open drains for sewage disposal in
small towns.
• Divert sewerage for horticulture
• Install bulk water metering for specific purposes and
areas so that water theft and usage can be easily
monitored
• Explore private sector involvement in solid waste
management
• Support all road construction and street paving through
an effective, open and paved drainage system so that
road surfaces are not damaged 18

19. Social Infrastructure
• Develop and implement guidelines for an aesthetically pleasing,
energy efficient, socially responsive architecture, signage and
street furniture. Seek support of academia and professional
organizations in this regard
• Integrate heritage conservation into the overall cities/towns
planning and development process
• Allocate space for educational/academic pursuits and recreational
activities based on a study of demand
• Develop and strictly enforce laws to protect land earmarked for
these activities. 19

20. Housing & Real Estate
• Undertake land appraisal at the district level to act as the
baseline inventory of land situation
• Establish Housing Price Index (HPI) and Housing Access
Index (HAI)
• Develop a Housing Resource Centre in each district
• Re-vitalize HBFC by encouraging it to venture into new
avenues such as community mortgage programs
• Identify laws, byelaws, zoning regulations and procedures
that constrain the delivering of housing to low and lower-
middle-income groups
• Take steps to remove impediments in the free and secure
transfer of title 20

21. Transport
• Consider rapid transport options for lower cost and
the flexibility in selection and change of routes
• Replace rolling stock for bus and rail systems every
six to seven years as opposed to thirty years
• Consider floating of municipal bonds to raise funds
for the financing of transportation systems.
• Give priority/precedence to transport
projects/investments over road projects
• Subsidize public transport fares for the urban poor
21

22. Recent Pressures on Peri-Urban Areas
• Municipal jurisdiction
• Revenue and expenditure management
• Sectoral change: Crop sector degradation Vs.
Livestock retreat
22

23. Thank You
vaqar@sdpi.org
www.sdpi.org
23