Problems of urban and rural housing in Pakistan is defining fantastically and population of Pakistan increases rapidly with the rate of 3 percent per year4.4, percent in the urban and 2.6 percent in the rural areas which indicates that 270,000 houses  for urban and 250,000 for rural should be needed. It is true that  slum dwellers is growing up in Pakistan’s urban areas rapidly. Due to failure of government policies in making land available to the urban poor has led to the creation of squatter colonies or katchi abadis. Currently 27 percent of Pakistan’s total urban population and 38 percent of Karachi’s population lives in such abadis. Most common land in the rural areas has been occupied and plot development can only be carried out on private land.

The failure of government policies in making land available to the urban poor has led to the creation of squatter colonies or katchi abadis. At present, 27 percent of Pakistan’s total urban population and 38 percent of Karachi’s population lives in such abadis. The growth rate of katchi abadis is much higher than of government planned areas. For instance, between 1970 and 1985 Karachi’s total growth rate was 4.5 percent per annum as opposed to 7.5 percent for the katchi abadis. In 1970, 23 percent of Karachi’s 3.4 million population lived in katchi abadis. In 1985 this figure had increased to 38 percent of a population of 6.5 million. The regularization of existing and the prevention of the development of new katchi abadis is therefore the most important aspect of housing in Pakistan, requiring immediate attention. Government failure to cater to the needs of the lower-income groups has led to the creation of an informal sector which acquires land through illegal or extra-legal means. This land is sold to the poor without cumbersome procedures, at a price they can afford, and possession is given immediately. The informal sector provides credit and technical assistance for house building and the residents lobby with state agencies for services and acquire them over the years, often in defiance of state regulations. Thus, katchi abadis continue to grow.