Professional Documents
Culture Documents
Introduction
Shelter is one of the basic necessities of life and occupies the biggest portion of any human
settlement. Housing ownership promotes social cohesion and citizens participation in other
development activities. In view of ever-increasing demand for housing and a huge backlog,
some innovative methods need to be employed to make a major breakthrough in this area.
The National Housing Policy 2001 is well articulated but its implementation has not been at
the desired levels. Except for some positive measures for housing financing by the State
Bank, not much progress has been made on other recommendations.
Due to the strong linkage of the housing sector to the economy, the income
multiplier is generally very high, and the private and informal sector can play a vital role in
national development. Housing construction also generates direct employment including:
(i) absorbing rural labor and providing opportunity for seasonal employment for farm
workers, (ii) enhancing participation of women workers, and (iii) activating small-scale and
mostly self-employed industries including building construction materials, equipment,
fittings and fixtures. Affordable housing for low-income groups also contributes to poverty
alleviation, income redistribution and promotes individual productivity and household
savings.
In 1998, there were 19.3 million households in Pakistan, with average household size
at 6.6 persons and occupancy at 3.3 persons per room. The overall housing stock comprised
39 per cent Kucha houses mostly without proper water supply, 40 per cent semi-Pucca
houses mostly without planned sanitation or sewerage system, and 21 per cent Pucca
houses. As against the current incremental demand for housing estimated at 570,000 units
annually, only about 300,000 units are being built annually, mostly in urban areas.
Accordingly, the housing backlog, estimated at 4.3 million units in 1998, has increased to
around 6 million units in 2005. The majority of rural housing is Kacha, with minimal water
supply and sanitation or drainage services. About half the urban population is living in
slums and Katchi Abadis, with inadequate housing and living conditions. The share of
housing in the public sector programmes has progressively decreased from 10.9 per cent in
the 1960s to 5.9 per cent in 1990s, with limited institutional finance continuing to be a major
constraint in housing production and maintenance of old dilapidated housing stock. In
addition, more than 80 per cent of the total population cannot afford the financing terms
provided by the House Building Finance Corporation and other housing finance
institutions. Resultantly, the construction of low-income housing has been much slower
than the incremental needs.
13.2.
Issues
The following are the major issues in the housing sector:
i)
ii)
administration with inadequate legal and regulatory systems, and high cost
of property transactions.
13.3.
iii)
iv)
v)
vi)
Limited supply of housing finance, with weak mortgage collateral, does not
encourage institutional credit based housing development.
vii)
viii)
ix)
Most of the Local Governments lack required skills to effectively manage the
urban growth, provide basic utility service and maintain the infrastructure,
especially in low-income areas/Katchi Abadis.
x)
Housing Strategy
In addition to the backlog of 6 million housing units, the incremental housing need
during the MTDF will be 3 million housing units. Increasing the house construction from
300,000 units in 2005 to 800,000 units by 2010 will only cater to the incremental needs during
2005-10. A much larger mass housing construction will be required if the housing backlog is
to be reduced during the MTDF. Accordingly, the strategy will be to undertake mass
housing programme with enhanced supply of institutional finance and long term fixed rate
financing options; increase availability of developed land; enhance proportion of small-size
plots for low income groups; undertake high rise condominium development, where
appropriate, to utilize land more effectively; build capacity for land administration;
discourage speculation in land; improve house construction technology including
standardization of components for mass production; regularize notified Katchi Abadis
complemented by policies to restrain the emergence of new Katchi Abadis; increase
community participation in housing and service delivery; provide sufficient and affordable
credit for rural housing to meet the needs of shelterless poor: invest in human capital to
improve the quality of construction; and put in place legal and regulatory framework to
facilitate the development of housing both in urban and rural areas.
The MTDF housing programmes would be developed as per the recommendations
of National Housing Policy, by the Ministry of Housing and Works in consultation with the
Provincial Governments and would be sustainable, both financially and environmentally,
with replicable models. The Government would assume the role of a facilitator for the
implementing of housing programmes rather than being the developer. Land Banks would
be established at the federal and provincial levels, and innovative techniques developed to
effectively involve the private sector. Consideration would be given to discontinuation of
auction policy for disposal of residential plots/ sites to arrest land speculation, and also to
capture a share of rising land values resulting from speculation to meet the housing needs of
low-income groups. Low-Income Housing Funds would be established at the provincial
level, and opportunities capitalized from the effective implementation of proposed Spatial
Planning Systems for development of rural and urban areas in the country. Salient features
of the housing strategy are outlined below.
13.4.
The efficiency of urban land market needs to be improved. Weaknesses in the land
titling and information systems include institutional fragmentation between numerous
record keeping entities at different levels; inconsistencies between different types of records;
the lack of transparency, cumbersome and unsecured manual processes, and difficult
reconstitution of chains of land titles; the heterogeneity of rules and procedures between
agencies within the same urban areas; and widespread avoidance of formal property
registration. The strategy would include: (i) appropriate and affordable land use, building
standards and regulations; (ii) improving procedures for land transfers (including cadastral
mapping, titling, and computerized registration); (iii) measures to stop land being held
vacant for speculative purposes; and (iv) improving information to public on land-market
indicators. Comprehensive land information systems would be developed using modern
technology including computerization, remote sensing techniques, GIS mapping, satellite
imageries, and aerial mosaics, to record correct and up-to-date information regarding the
inventory and land classification, settlement patterns, land values and the extent of land
available in all urban and rural areas for future planning and development.
Land is required for any type and level of housing. The high income group
constituting only 20 per cent of total population is being serviced by the private and public
sectors. It is the balance 80 per cent that is being severely hurt by the soaring land prices at
varying degrees. Accordingly, the following strategy is proposed:
i)
Land Banks would be established at the federal and provincial levels. The
Banks will allocate lands for various housing projects/ new towns with focus
on low-income housing.
ii)
All suitable federal and provincial state lands would be transferred to the
proposed Land Banks.
iii)
iv)
Funds for purchase of lands would be obtained from the proposed LowIncome Housing Fund or loans from commercial banks. In case of loans, the
mark-up may be picked up by the Provincial Governments, at least in the
initial stages.
v)
13.5.
vi)
vii)
Housing Development
There is a whole range of housing catering to the various income groups. As the land
is a limited resource, it has to be used optimally to conserve it for the future and for other
uses like industry and agriculture. Accordingly, the large plot sizes would be discouraged
and the ratio of smaller plots shall be increased substantially to cater to the needs of the lowincome groups and to strictly control the formation of Katchi Abadis.
General Housing
i)
ii)
iii)
Low-income Housing
i)
25 per cent of the Non-utilization Fee for vacant plots after a specified
period. Non-utilization Fee to be substantially increased in view of the
rapid increase in the prices of the urban plots.
Allocations/grants
Governments.
Private donations.
from
Federal
and
the
concerned
Provincial
ii)
In all the Government and private housing schemes, the ratio of small plots
would be increased (not less than 50 per cent). Small size plots would be
cross-subsidized from the sale proceeds of larger plots and commercial areas.
iii)
ii)
iii)
Katchi Abadis
i)
ii)
iii)
For Katchi Abadis on private lands, the role of the Government would be to
facilitate dialogue between the owners and the residents.
iv)
Sindh model of Katchi Abadis regularization with the land title tied to
payment of dues (land and development cost) should be considered for
adoption by other provinces.
v)
vi)
vii)
viii)
ix)
Rural Housing
13.6.
i)
ii)
The programme of the Punjab Government under Jinnah Abadis Act to grant
5 Marla plots for housing for rural shelterless to be expanded with initiation
of similar programmes by the other Provinces.
iii)
iv)
v)
vi)
vii)
viii)
Housing Finance
13.7.
Private Sector
Increased attention would be given to the private sector involvement in the delivery
of housing services and land development. For this purpose, appropriate incentive systems
and legal and regulatory frameworks would be developed. A priority will be to make
market entry easier through better security of tenure, access to land and credit, and
regulations to allow mixed use of land, and affordable planning and building standards.
Given the massive investment required in housing infrastructure, a greater focus is needed
on the creation of cost-effective and efficient public-private partnerships that include
mechanisms for attracting private capital for infrastructure provision.
13.8.
Institutional Strengthening
Provision of Housing for All requires strong and cost effective institutions, acting
as facilitators rather than developers, capable of using modern technology, methods and
techniques efficiently. Accordingly, emphasis would be placed on strengthening housing
sector institutions and related research organizations including construction technology, to
establish replicable and sustainable models for mass housing.
Housing is mainly in the provincial domain. It is envisaged that the Provincial
Governments will play the lead role in enabling the sustained delivery of Housing for All.
This includes developing appropriate mechanisms and institutional frameworks, and
setting up provincial housing delivery goals and performance parameters in support of the
national housing delivery goals. Housing is also a local community affair where end users
are both the contributors and stakeholders for all types of housing activities. Accordingly,
the role of the local governments would be important in enabling, promoting and
facilitating the provision of housing to all segments of the population within their respective
jurisdictions.
It is envisaged that the Federal Government would provide the overall coordinating
and monitoring mechanism through the Ministry of Housing and Works. Provincial
Governments will initiate all necessary legislative, regulatory, and institutional
strengthening measures, both at the Provincial and local government level, for the effective
implementation of the National Housing Policy and to achieve the MTDF targets in the
respective provinces.
13.9.
ii)
Introduction of building materials already developed such as compressed mudbrick (Adobe) and ferro-cement roofing system in rural low-rise housing.
iii)
Item
Total
2
3
4
5
6
7
Allocation
Federal Provincial
12
10
5
2
1.5
-
3.5
2
2
30
0.5
9
1.5
21
With the comprehensive strategy adopted for MTDF covering land, housing, finance,
institutional strengthening, and research and development, and by enhancing private sector
participation, with Government in a facilitatory role, the stage has been set for meeting the
objective of Housing for All. Accordingly, a sharp increase is envisaged in housing
construction to meet the incremental needs and to commence the process of reduction of the
huge backlog.