Pakistan is a rapidly urbanizing country. The proportion of its urban population was 15 percent at the time of independence. Now about 40 percent of the population of Pakistan lives in urban areas. The population of most urban areas doubles in 20 years’ time. Housing provision for the urban poor is still an uphill task for the Planners of the 21st Century. The main difficulties are the low level of affordability of the poor for planned and decent housing and the lack of a culture of planned development in the country. As a result, the informal sector builds unauthorized, sub-standard, and environmentally hazardous housing usually called slums or squatter settlements locally known as Katchi Abadis. Various solutions were tried to resolve the issue of low-income housing in Pakistan such as sites and services schemes, slum clearance, and shifting of squatters to the new resettlement areas, where the ëcore-housesí were built and provided on an installment basis. All of these efforts have failed to resolve the gigantic issue of housing the urban poor who comprise three fourth of the total urban population. However, there have been some good practices also initiated in Pakistan. For example, Orangi Pilot Project (OPP) was initiated in Karachi to improve the living conditions in one of the largest Katci Abadis of Karachi. Similarly, in 1987, the Khuda-Ki-Basti (KKB) project was initiated by the Hyderabad Development Authority (HDA), Hyderabad, Pakistan.