PAKISTAN: LOW INCOME HOUSING EXPERIENCES

1. Introduction

Pakistan faces a significant low income housing challenge, particularly for its low-income population. Rapid urbanization, population growth, and limited financial resources have exacerbated the housing deficit. This presentation by Zaigham Mahmood Rizvi provides insights into the country’s housing landscape, existing initiatives, and lessons learned.​

2. Demographic and Urbanization Context

• Population Dynamics: As of the presentation’s date, Pakistan had a population of approximately 160 million, with two-thirds residing in rural areas and one-third in urban centers.​

• Urban Growth: Major metropolitan areas include Karachi, Lahore, Rawalpindi/Islamabad, Peshawar, Hyderabad, and Faisalabad. Karachi alone had a population of 15 million, growing at a rate of 7–8% annually.​

• Squatter Settlements: Nearly half of Karachi’s population lived in squatter settlements, numbering between 600–800. The city required approximately 100,000 new housing units annually to meet natural growth, address the backlog, and accommodate urbanization pressures.​

3. Housing Needs Assessment

• Target Populations:

  • 20% of the population were candidates for micro-housing solutions.

  • 40% were suitable for small-housing initiatives.​

• Economic Indicators: The minimum wage was Rs 6,000 (approximately $75) per month, limiting affordability for many households.​

• Urban Housing Backlog: An estimated deficit of 2.5 to 3 million units existed in urban areas.​

• Housing Density: Urban areas had a person-to-room density of 3.5, indicating overcrowding.​

4. Existing Low-Cost Housing Schemes

4.1 Public Sector Projects

• Korangi Town Project, Karachi: Aimed at providing affordable housing units.​

• Surjani Town, Karachi: Focused on accommodating low-income families.​

• Lyari Expressway Projects, Karachi: Included resettlement initiatives like Taiser Town, Baldia Town, and Hawksbay Town.​

4.2 Public-Private Partnership (PPP) Initiatives

• Al-Azam Apartments, Karachi: Developed through collaboration between public entities and private developers.​

• Maymar Apartments, Karachi: Another example of PPP in affordable housing.​

• Khuda Ki Basti (KKB): Implemented in Karachi, Hyderabad, and Lahore, KKB provided incremental housing solutions for low-income families.​Naphda

4.3 Pure Private Sector Initiatives

• Bahria Town (Awami Villas), Rawalpindi: Offered affordable housing units developed by a private entity.​

• Heritage Homes, Lahore: Focused on providing cost-effective housing solutions.​

5. Lessons Learned from Pakistan’s Experience

• Effectiveness of PPP Models: Low-Cost Housing Schemes (LCHS) developed through PPPs were better managed and more sustainable.​

• Role of Large-Scale Builders: Engagement of large builders and their associations proved crucial in scaling housing initiatives.​

• Infrastructure Planning: Integrating essential services and infrastructure at the planning stage was vital for the success of housing schemes.​

• Beneficiary Identification: Transparent processes for identifying and screening beneficiaries ensured that housing units reached the intended recipients.​

• Importance of Amenities: Access to transport, utilities, schools, and healthcare facilities significantly impacted the success of housing projects.​

• NGO Participation: Non-Governmental Organizations played a key role in implementing micro-housing schemes.​

• Ownership Policies: Linking title and ownership to the actual residents discouraged speculative practices.​

• Cross-Subsidy Models: Implementing cross-subsidy approaches helped in financing affordable housing units.​

6. Recommendations for Future Initiatives

• Regional Collaboration: Establishing a regional platform to share lessons, experiences, and technologies related to low-cost construction and materials.​

• Standardized PPP Models: Developing transparent and standardized PPP contracts to facilitate collaborations.​

• Data Collection: Gathering reliable data on populations requiring micro and low-income housing to inform policy and planning.​

• Workshops and Training: Organizing workshops for builders and developers to discuss best practices and innovations in affordable housing.​

• Beneficiary Guidelines: Creating clear guidelines for the selection and screening of beneficiaries to ensure equitable distribution of housing units.​

7. Conclusion

Addressing the low-income housing challenge in Pakistan requires a multifaceted approach involving public sector initiatives, private sector participation, and community engagement. By learning from past experiences and implementing the recommended strategies, Pakistan can make significant strides in providing affordable housing solutions to its low-income population.

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