Karachi: Official estimates show that Pakistan faces a shortage of 10 million housing units and this increases each year, with the funds required to remove the shortage standing at USD 180 billion, according to a news report. USD 180 billion forms about half the size of Pakistan’s economy.
Patron and former Chairman of the Association of Builders and Developers (ABAD) Mohsin Shiekhani stated that even the most economical of respectable residential units will cost about PKR 2.1 million. He also stressed that there is a need for low-income housing because of its multiple benefits including improvement of law and order.
Explaining the figure of PKR 2.1 million, Shiekhani said that PKR 400,000 was needed for land and development; PKR 1500 per sq. ft. will be spent on construction of 120 sq. yd. plots, and finally, PKR 200,000 will be spent on government fees and management costs.
Pakistan Mortgage Refinance Company (PMRC) Managing Director and CEO NK Rupan said on the occasion that property development needs to be regulated, since that will help encourage low-income housing. He mentioned Malaysia in the context which regularised its industry in 1960.
According to a research report, 68% of Pakistan’s total population, which earns a maximum of PKR 30,000 per month, can buy property in only 1% of all the housing developments each year. 56% of the housing units each year are affordable for only 12% of Pakistan’s population earning above PKR 100,000 per month.
