Final Project of Finance for Development course

1. Sustainable Development Goals
Submitted by: Muhammad Qasim Ashraf
Final Project: Development Finance Impact Project-Digital
Aircraft ( A case study of Pakistan)

2. Basic purpose

3. Core Issue: Sustainable Cities and Communities
• The eleventh and most important goal of 17 initiatives taken
in Un Summit 2015 is to make cities and human settlements
inclusive, safe, resilient and sustainable

4. Facts and Figures
• Half of humanity – 3.5 billion people – lives in cities today
• By 2030, almost 60 per cent of the world’s population will live in
urban areas
• 95 per cent of urban expansion in the next decades will take place
in developing world
• 828 million people live in slums today and the number keeps rising
• The world’s cities occupy just 3 per cent of the Earth’s land, but
account for 60-80 per cent of energy consumption and 75 per cent
of carbon emissions
• Rapid urbanization is exerting pressure on fresh water supplies,
sewage, the living environment, and public health
• But the high density of cities can bring efficiency gains and
technological innovation while reducing resource and energy
consumption

5. Sustainable Cities and Communities
Targets
Reduce
Environmental
hazards and
ensure waste
management
Inclusive and
Sustainable
Urbanization
Safe , inclusive
and accessible
public spaces
Protect world
cultural and
natural heritage
Accessible, Safe,
Affordable and
Sustainable
Transport
National and
Regional
development
planning
Reduce deaths by
disaster and
protect poor
Affordable, Safe
and Adequate
Housing

6. Pakistan’s Major problem
• In Pakistan, urbanization is rampant and it is expected that
half the population of Pakistan will be living in the cities by
2030.
• The major problem Pakistan is facing and will face in next
couple of decades is to provide adequate housing to the poor
living in cities.
• There is a backlog of about 7.6 Million houses in the country
with an incremental demand of about 0.25 million units per
year. Hence there is a desperate need to take measures
through which housing backlog could be removed and present
need can be fulfilled. Besides, these measures should be
financially feasible.

7. Reasons for Government, Private sector and Official Aid
Agencies to Contribute
Reasons
Recognized as basic
necessity under article
25(1) of Universal
Declaration of Human
Rights
Responsibility of the
State to provide
adequate , safe and
affordable housing
Private developers can
provide helping hand to
help out their fellow
poor citizens
Recognized under
Article 11(1) of the
International
Covenant on
Economic, Social and
Cultural Rights
Module 13(Section 5)

8. Obstacles in provision of Housing
• Land speculation and limited supply of developed land, especially is
urban areas, has made ownership right beyond affordability.
• High population growth rate of 3 as compared to economical
growth of 1.8 causes inflation.
• Government agencies reliance on traditional approaches to provide
housing has resulted in a failure to cope up with ever increasing
demand.
• Illegal subdivision of urban land by the private developers due to
which prices of plots are increased tremendously.

9. Obstacles in provision of Housing
• Limitations of house finance and weak mortgage collateral
discourages credit based housing development.
• Lack of transparency and misuse of house finance have
resulted in hesitation of financial institutions to award funds
for house construction.
• Rigid laws and building codes have limited the efficient use of
urban land and increased the cost of consumer.
• Lack of comprehensive policy at national, provincial and local
level to reduce the backlog of 9 million housing units and
cope up with 0.34 million demand each year.

10. Housing Provision Solutions
• Master, Structural, Regional and local development plans
should be implemented in their true sense.
• Effective institutional capacity building frame work should be
provided at grass root level to minimize general disparities
and imbalances, not only between urban and rural areas but
also between various income groups.
• Introduction of innovative approaches to collateral and
screening of eligible households for incremental housing
finance and home improvement credits with the affordability
limits of low income and moderate households would be
introduced.

11. Housing Provision Solutions
• High rise, Transit oriented development should encouraged
for provision of low income housing.
• Private developers should be made bound to sell 25 percent
of their of plots at a subsidize rate with easy installments to
the low income people.
• Government should provide subsidy to the private developers
to provide housing to the low income people.
• Building codes and by laws should be made flexible for low
income housing.
• Low interest loans should be provided to upgrade slums and
katchi Abadis.

12. References
• http://www.un.org/sustainabledevelopment/c
ities/
• https://sustainabledevelopment.un.org/?men
u=1300
• https://www1.umn.edu/humanrts/edumat/IH
RIP/circle/modules/module13.htm
• National Housing Policy 2001(Pakistan)