Pakistan National Housing Policy, 2001
Realizing the fact that Housing is not only a social need but a productive sector of the economy, The Govt. directed the Ministry of Housing and works to formulate a viable and effective Housing Policy.
A Housing Advisory Board of nearly 40 members, half of them from private sector was constituted.
It includes all stakeholders i.e. Builders, Constructors, Development agencies, Bankers, Town Planners, Provincial Governments, HBFC, and SBP.
After a number of meetings and deliberations, the NHP 2001 was principally approved by the President during a presentation made by MoH&W on 22nd June 2001.
Major Housing Problems and Issues
> According to the 1998 Census:
> The total number of Housing Units throughout the country was 19.3 million.
> Rural Housing 67.7%
> Urban Housing 32.3%
> Out of total Housing Stock 39% stock comprised of Kuchha Houses
> 40% Semi-Pukka Houses and;
> 21% Pukka Houses
The annual estimated requirement was 570,000 Housing Units
Annual estimated Production was 300,000 Housing Units
Recurring Backlog was 270,000 Housing Units
> Shortage of Finance
> Inflationary trends in the economy; cost of building material.
> Lack of adaptation of innovative technology and materials.
Key Objectives and Aims of the Policy
> Facilitate availability of suitable and affordable lands.
> Provision of safeguards against malpractices, inefficiencies, institutional weaknesses, and mafia assaults.
> Introduction of schemes i.e. mortgage finance, Saving and loan schemes, induction of insurance, microfinance loans, etc.
> Provision of incentives through tax rationalization, reduction in property tax, simplification of procedure, and enforcement of effective foreclosure laws.
> Incentives for the private sector to encourage their full participation in National Building Initiatives.
Identification and Provision of Lands:
The Provincial, metropolitan, and local authorities shall identify state lands for housing developments in urban and rural areas of their respective jurisdictions.
Land Acquisition laws shall suitably be amended to make unified and transparent systems and to minimize litigations.
Land Information System shall be developed using modern technology. It was decided to complete this task within 3 years by provincial Govt. and other agencies.
Registration system shall be rationalized into a formal and social registered contract.
Land Disposal system shall be modified to bring uniformity, transparency and market orientation.
In Master plans/structural plans, plots earmarked for low-income housing shall be cross-subsidized and disposed of at affordable rates.
Housing Finance
> Financial institutions shall be encouraged to give mortgage loans on market rates.
> Commercial banks shall be motivated for housing loans.
> Financial Institutions shall be encouraged to float long-term bonds at market rate.
> Institutions maintaining insurance funds, provident funds, and EOBI funds shall be encouraged to invest in the housing sector.
> Restructure HBFC to make it a viable commercial concern and enhance annual disbursement from Rs. 1.2 bn to Rs. 7.00bn
> HBFC shall introduce bridge financing and bulk financing through escrow accounts.
> Foreclosure laws shall be introduced to ensure effective recovery.
> Property tax shall be reduced/rationalized.
Construction Services Sector
> Housing and construction companies shall be charged via a presumptive Tax Regime.
> Banks and DFIs shall extend credit facilities for the modernization and replacement of machinery used for the housing construction industry.
> Stamp duties and registration fees shall be adequately reduced.
> Duties and taxes on major construction materials shall be rationalized and reduced to make construction more affordable.
> All Govt. departments and organizations shall be directed to engage local consultants and construction companies.
Kachi Abadis, Squatter Settlements & Slums
The Kachi Abadis which are hazardous by virtue of being close to Railway tracks, under High tension power lines, Riverbeds, etc. needed to be relocated at appropriate places.
Formation of new Kachi Abadis shall not be allowed and shall be discouraged by exercising strict development controls in urban areas.
Resettlement plans shall be prepared by the concerned land-owning agencies.
Building regulations, Building by-laws, and planning standards shall be revised to permit incremental development and lowering of planning standards to make it cost effective for low-income groups.
Provincial Govt. shall develop packages in which the prime state land within the urban center, occupied by Kachi Abadis shall be offered to private developers for commercial use provided they arrange and finance for relocation of Kachi Abadis, Squatters settlements.