Pakistan faces a housing shortfall of 8 million

With population that exceeds 190 million, Pakistan is the 6^th most populous country of the world. According to independent studies, more than 300,000 infants are added to the total population each year. The average household size in the country is approximately 8, which is burdening the state’s economic structure at very basic level. The rising population is causing rapid urbanization, followed by noticeable development in the country’s infrastructure.

Many analysts find this growing population and thus urbanization a positive sign that indicates economic development. The other side of the picture is that about 8 million people in the country are homeless – A staggering 80 lac people in Pakistan are without shelter and another 600,000 are added to this figure annually . If the situation is not addressed on urgent basis, Pakistan will have more than 15 million people on roads by 2020.

Every passing day, the rising cost of building material, labour, cement and fuel drags the middle and lower middle class in Pakistan further away from having a home of their own. The private sector too faces tons of restrictions by the housing and construction laws as well as hefty taxes. Therefore, the idea of accommodating the needy seems quite farfetched.

Many people argue about the importance of reducing this gap of 8 million in the housing sector because those  who live in their own houses are in a better position to contribute economically, socially and politically to their society. Leaving this problem unaddressed would mean leaving an ever-growing number of people entangled in their accommodation issues and never getting a chance to play a part in country’s development.

To combat this major issue, the government of Pakistan should facilitate the private sector by controlling the cost of building material and issuing mortgage on minimum interest rate and flexible conditions. Provided the cooperation of concerned public sectors, the private construction sector has the potential to drive Pakistan real estate out of this grave crisis.