Affordable Housing Delivery for Low-Income Urban Households in Pakistan: Housing Finance, Land Access and Informal Settlements
Abstract
The study examined the delivery of affordable housing for low-income urban households in Pakistan, focusing on housing finance, government housing programmes, institutional barriers, access to land and the treatment of informal settlements. The study adopted a qualitative literature-based methodology, drawing on peer-reviewed articles, institutional reports and policy publications. The analysis was anchored in the self-help housing theory of Turner and augmented by the enabling markets approach and the residual income approach to housing affordability. Findings reveal that Pakistan faces a housing shortage of about 10 million units, that the mortgage market remains below one percent of gross domestic product, and that the Naya Pakistan Housing Programme expanded lending but was interrupted in 2022. Institutional fragmentation, limited access to well-located land and relocation-based policies further restrict access to adequate housing. The study recommends stable long-term housing finance, release of public land near employment centres and in-situ upgrading of katchi abadis.
Keywords: Affordable housing, low-income households, housing finance, informal settlements, katchi abadis, Pakistan
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