A byproduct of the capitalist economic system especially in the industrialized or developed economies is the widening of gap between the rich and poor. A small percentage is becoming increasingly richer, while larger numbers are falling below the poverty line. This widening of gap between the rich and marginalized has compelled political economists to redefine the concept of Welfare State (which initially comprised of tax collection and income redistribution); it is now more inclusive and encompasses the comparative wellbeing and standard of living of the existing population in terms of a basket of noncash benefits such as education, health, capacity building of unemployed youth and housing facilities. Most developing states are unable to escape the forces of globalization and thus have free market or capitalist economic systems, therefore the scale and importance of the demand for “housing” for the poor and marginalized is on the rise in these countries.

The urban population as percentage of total population in Pakistan is also increasing rapidly. According to 1998 census, 31.3% of the total population lived in urban areas whereas by 2010-2011 it had increased to 37% and will be more than 50% of the total population by the end of 2015 with an average growth rate of 2.97%3. Lahore is among the densely populated metropolitan cities of Pakistan. It is the second biggest city of Pakistan with population of around 8.63 million4 (Khaliq-Uz_Zaman & Arif A Baloch 2011) with an annual growth rate of 2.83%5 and also holds the status of provincial capital of Punjab with urban population of around 13% (1998 Census) of the total urban population of Pakistan6. Lahore has witnessed huge expansion in terms of housing infrastructure development. Lahore Development Authority (LDA) is the principal public body involved in the supply of residential plots in Lahore.

The Lahore Cantonment Board and Defense Housing Authority are also involved in housing and land development in the city.  the LDA has framed certain regulations under which it grants approval to housing projects of the private sector in two stages. It first grants technical approval to a private sector sponsored housing scheme when its layout plan is submitted and found up to the required standards. Final approval is granted when the services design of the scheme is submitted and found in conformity with LDA’s standards. Mr. Shahbaz Sharif, Chief Minister of Punjab announced the Ashiana Housing Project, ostensibly for the low income and marginalized groups of Lahore in the last quarter of 2010.