Housing shortfall in Pakistan reaching alarming levels

[Naveed Yaseen]

KARACHI: The country, at present, is facing a shortfall of more than 6 million housing units while loan disbursement from House Building Finance Corporation for the last one-year has almost ceased and lower- and middle-income group has totally been ignored.

The government, banks and DFIs should take concrete measures in order to address housing shortage in the country, chairman Association of Builders and Developers of Pakistan (ABAD), Farooq uz Zaman said Monday. He urged the government to implement comprehensive recommendations on housing in Pakistan, prepared by Housing Advisory Group under the auspices of State Bank of Pakistan. If these two groups of the society are not targeted, no housing finance plan would be able to deliver the desired results, he added.

He ensured the support of ABAD to banks and other financial institutions in preparation of mortgage system as housing finance is by all means the safest mode as the default ratio is less than 7 percent.

The World Bank and IFC have expressed their serious concern on housing shortage in Pakistan. International level of per room occupancy is 3.4 persons whereas in Pakistan it is 6.7 persons. He said regulations stated by commercial banks and financial organisations to buy and construct a house are virtually impossible for one to meet. He said in order to provide shelter to the people of low- and middle-income group the government should chalk out plan on concrete grounds. “Without adequate structural support provided to HBFC from the government the lower and middle-income groups would always invariably worry about housing,” he maintained.

He said the purpose of forming HBFC was to help these groups, so that they could easily claim ownership to their respective residences. He said there would be greater need for housing units for low income people during the next 5 years. He asked the government to take steps for improving the existing infrastructure and also provide new infrastructure for upcoming schemes in major cities of the country. staff report

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