Demand-Supply.

Byline: Urooj Aijaz

Affordable housing is a common concern of developing nations like Pakistan. Developing countries are the victims of housing shortage, which is in critical condition over the past decade. Every political party is come up with the slogan of 'Food, Clothes, and Housing' in their election manifesto, but this issue gains priority in present government as Prime Minister, made a campaign promise during the elections 2018 to build five million homes so, after winning the elections government announce Naya Pakistan Housing Project to address the affordable housing situation. As of 2021, this ambitious policy has made some progress to increase the supply and availability of affordable housing.

Naya Pakistan housing project based on a public-private partnership structure to target the demand side of the housing crisis, where government intends to increase consumer borrowing capacity by improving access to financing options in the form of long-term loans to ensure affordability of housing units while efforts are taken to boost housing supply through provision of parcels of federal and provincial governments land to developers, which reduce the cost of production for housing developers by diminishing land acquisition costs, government land provision is meant to incentivize more developers and contractors to build low-income housing infrastructure. Under this agreement, the price of land is ultimately recovered from the end consumer, as opposed to the developers who utilize their own funds for construction but benefit from the economies of scale that result from the utilization of standardized design. The government also promised to facilitate the provision of utilities such as gas, water, and electricity for developers and future homeowners alike. Additionally, the government aims to streamline processes by cutting down approval times on zoning and permitting requests. Collectively, the housing policy stands on three pillars:

1. Creation of demand for housing by improving access to loans for housing finance by increasing long-term loans.

2. Providing public land to builders for immediate construction to improve supply of houses.

3. Facilitating the housing schemes through timely approvals and provision of utilities.

The loan policy announced by Government of Pakistan coupled with the provision of land, is set to ensure that both demand and supply forces work together to ensure greater availability of housing at...