Govt housing schemes fail to make dent in housing deficit

LAHORE: Housing shortage is an acute problem in Pakistan. The deficit is primarily concentrated in urban areas due to rapid urbanisation and rural to urban migration. Recent floods and natural disasters have also contributed to the housing deficit in rural regions.

The housing shortage in Pakistan is estimated to be in the range of 10 to 12 million units. Due to the migration to cities, the population density has increased and the demand for housing is greater in urban areas.

The housing shortage has resulted in various issues, including overcrowding, slums, informal settlements, and homelessness. Many people are forced to live in inadequate housing conditions without access to basic amenities such as clean water, sanitation, and electricity.

To address this housing deficit, different governments in Pakistan launched different initiatives like the Apna Ghar scheme and the Naya Pakistan Housing Program (NPHP). The aim was to provide affordable housing solutions to low-income households through partnerships with the private sector and financial institutions. The aim was to construct millions of housing units across the country. Both schemes failed to make a dent in the deficit and hardly added 50,000 new houses altogether.

In a resource-starved country like Pakistan, it will always be challenging for the government to provide full funds to address a housing deficit of 10-12 million. It needs transparent and proper planning. The government has millions of acres of state land in urban localities. It is highly expensive. Developers can be lured to construct 5 marla housing colonies on these prime locations with a choice to utilise 1/3rd of the land for their private housing scheme, provided they handover the 5-marla houses free of cost to the families selected through transparent ballot by the government.

The price of prime land would more than cover their expenses and provide them a lucrative location to build high rise housing projects for the affluent. Only a truly transparent government can collaborate with private sector entities to develop affordable housing projects. This approach can help mobilise additional resources and expertise, while sharing the financial burden.

Another alternative is for the government to allocate partial funds in the form of subsidies or grants to support low-income individuals and families in acquiring affordable housing. These subsidies can help reduce the cost burden and make housing more accessible.

The government can also establish or strengthen housing finance programmes, such as providing low-interest loans or guarantees, to facilitate access to housing for those in need. These programmes can encourage private financial institutions to extend credit for housing purposes.

Yet another way is that instead of building new housing from scratch, the government can focus on upgrading and rehabilitating existing slums and informal settlements. This approach can be more cost-effective and improve the living conditions for a significant number of people.

The government can introduce policy reforms and incentives to encourage private sector participation in the housing sector. This can include streamlining regulatory processes, providing tax incentives, and offering land subsidies for affordable housing projects.

It is important to note that addressing a housing deficit of such magnitude requires a long-term and comprehensive approach. It may involve a combination of strategies, collaboration with various stakeholders, and prioritisation of resources based on the most vulnerable populations’ needs.