The housing industry has the potential to act as an engine of growth for industrial development in the country as it has linkages with around 40 other industries. It needs special attention of the government in terms of concessions in taxes and duties on the import of construction machinery. The importance of the industry can be judged by the fact that 3.6 million individuals are added to its population every year, making Pakistan as the sixth largest populated country in the world. Housing is the principal need of every individual, besides food and other necessities of life. Though the housing industry is thriving in the country and has become one of the most lucrative businesses in recent years, it is the sector which can ensure sustainable economic growth with growing population at a fast rate and is likely to become the largest Muslim country in the world by 2050 crossing Indonesia. The country faces shortage of housing facilities, especially in low-income groups.
According to statistics, the country is facing a massive shortage of around nine million units and a large chunk of population belongs to economically disadvantaged members of the lower middle classes. On another note, the process of urbanisation has been started at a fast rate. Cities’ population is swelling, resulting in the mushroom growth of slums and low grade settlements in major metropolitan areas. The federal and the provincial governments have introduced various housing finance schemes which also include construction of housing for low income families. The State Bank of Pakistan has advised banks to promote housing finance as the provision of affordable housing and mortgage finances are paramount to cope with growing cities. The government is taking various steps to come up with affordable solutions and SBP is actively involved in supporting the housing sector.
If the government is sincere in economic growth, it has to take urgent steps to resolve the housing problems as the fast process of urbanisation could create serious housing challenges for the coming generations. There are 10 large cities in Pakistan, including Karachi and Lahore, which constitute 62 percent of the total urban population. The city population is growing at the rate of 30 percent.The World Bank estimates that the gap between supply and demand is increasing by more than 300,000 housing units per year whereas the country is already facing a backlog of around ten million housing units. The solution to housing problems can make Pakistan a better place to live.
