Has low-cost housing taken precedence?

Byline: Khalil Ahmed

Low-cost housing is the dire need since the housing backlog is around 10 million units in Pakistan at the moment. Let alone the impoverished and the poor or the working class to be precise, even the lower-middle class cannot think of buying a house in the wake of high inflation coupled with rising unemployment. Those earning up to Rs80,000/- (eighty thousand rupees) per month find it hard to keep body and soul together. The construction cost has spiked particularly by virtue of skyrocketing prices of steel and cement at this juncture. Irrespective of downscale or upscale areas, house prices have soared leading to a hike in house rents to an unprecedented level, which have caused havoc for those who are tenants in particular.

The Naya Pakistan Housing Program (NPHP) is in a certain way a ray of hope for millions of poor Pakistanis. It is marvelous to know that the government will provide land and infrastructure facilities to builders and developers to ensure the success of the housing scheme. Moreover, the government has made headway in terms of a foreclosure law which was a primary impediment in this regard. There are certain glitches, which need to be coped with to ensure the success in essence.

The entire family income must be considered in this regard. If the monthly income of an entire family consisting of 6 members is less than Rs 100,000/- (one hundred thousand rupees), it is unlikely for such a family to pay hefty down payments and installments. How could they pay between Rs0.5m and Rs1m as down payment? House prices ranging from Rs4 million to Rs13million are beyond the affordability of millions of Pakistanis. Hundreds of thousands of households struggle to feed their families, let alone avail the facility of buying even a low cost house in this era of skyrocketing inflation.

There is no denying the fact that the concept of Naya Pakistan Housing Program (NPHP) is splendid in the given circumstances however the ground realities must be considered as well. Millions of impoverished Pakistanis only think of two meals a day since owing a house even in a shanty area is a luxury. The government also does not have fiscal space to offer free housing to the impoverished in particular. However, certain steps may work wonders such as no down payments and monthly installments corresponding to the monthly rent of a certain...