Despite some hectic efforts by the government, economic indicators are showing downward trends.  Turbulent political situations, law and order instability, global supply shocks (oil, food and financial crises), and softening of external demands have adversely affected key macroeconomic fundamentals. In spite of the worsening macroeconomic environment in and around Pakistan, the banking system appears to be generally well-capitalized, profitable, and fully loaded. The scheme has show that without bringing about basic changes in the society’s power structure and changing unequal relationship between the government and the katchi Abadi dwellers, and even without any definite political program in favor of the poor, development authorities can successfully assume the role of the informal sub-dividers and follow their strategies at least partially.