Pakistan’s unprecedented flooding has forced nearly 500,000 people to leave their homes and seek refuge in relief camps. Floods have eroded the infrastructure, i.e., dams, houses, buildings, etc. In times of havoc, disaster management authorities (NDMA &PDMA) have depicted that millions of housing units are needs to be reconstructed in rural and urban areas.
Different foundations, banking sectors, and trusts are donating to finance the rehabilitation process. However, Thardeep Microfinance Foundation (TMF) has funded 1,400 low-cost housing units over 10 to 12 years in the recent floods that hit the country. Furthermore, Banks have announced a contribution of Rs50 million to the Prime Minister’s Flood Relief Fund.
It is forecasted that the process of rehabilitation and reconstruction activities will be completed within two to three months once the standing rainwater recedes. In Pakistan, the winter season will be started in a few months and displaced people need appropriate shelter to protect their families from the cold. Due to this reason, the government has decided to build low-cost houses. However, the construction cost of a low-budget housing unit has spiked to Rs 500,000-750,000, which was merely Rs 60,000 post-2010 floods. If 2 million units are constructed at the rate of 500,000 per unit, the total reconstruction cost will be Rs1 trillion. Reconstruction of houses will stimulate the economy, help construction and allied industries to improve their growth and provide job opportunities to many daily wagers.
Flood has affected the rural population adversely as compared to the urban population. The government needs to pace the rehabilitation process to provide proper shelter to all affected populations as soon as possible. The government needs to revamp the National Housing Policy as it is not upgraded since 2001. The corporation between the private sector and government will provide a solution to reduce the negative impact of the housing crisis. The government should provide loans at low-interest rates to the people not covered in a low-cost housing scheme to build their houses. Nonetheless, foreign investors can be vital in building low-cost housing. To attract more investor government, need to improve regulations for doing business.
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