Pakistan faces acute housing shortage: Report

New Delhi, Aug 25 (IANS) With nearly 259 million people, Pakistan requires approximately 41.1 million housing units, based on the Pakistan Bureau of Statistics (PBS) 2023 Census average household size of 6.3 persons. But the ‘Seventh Digital Population and Housing Census’ records only 38.34 million existing housing units, resulting in a quantitative shortage of approximately 2.77 million homes, according to a new report.

However, the challenge extends beyond this numerical deficit. Of the existing housing stock, 32.5 per cent consists of ‘kacha’ or ‘semi-pakka’ structures. After accounting for these sub-standard dwellings, Pakistan’s stock of durable housing falls to approximately 25.9 million units, resulting in an estimated deficit of 15.23 million acceptable homes, according to an article in the Karachi-headquartered Business Recorder.

Rather than translating into widespread homelessness, this gap is largely absorbed through overcrowded housing, shared family residences, incremental self-construction and informal settlements (katchi abadis), illustrating that Pakistan’s housing challenge is not only about the number of homes available but also their quality, safety, sanitation and suitability for long-term habitation, the article points out.

Pakistan’s demographic profile reinforces this demand. More than 60 per cent of the population is below the age of 30, representing a large pipeline of future first-time homebuyers. Urbanisation, population growth and continued household formation are expected to sustain housing demand over the coming decades. Despite these structural drivers, formal mortgage finance remains one of the least developed segments of Pakistan’s financial sector.

The contrast becomes evident when viewed internationally. Outstanding mortgage finance in Pakistan accounts for only 0.25–0.30 per cent of gross domestic product (GDP), compared with approximately 5.1 per cent in the Philippines, 10–11 per cent in India, 12.2 per cent in Indonesia, and 30–40 per cent in Malaysia, the article states.

For an economy where housing contributes significantly to construction activity, employment, manufacturing and financial sector development, the relatively small mortgage market indicates that a substantial portion of housing demand continues to be met outside the formal housing finance system, the article added.

–IANS

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