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DECEMBER 2007

 

 

ISSUES:

 

 

 

 

 

Housing imperatives for Karachi

 

By Arif Hasan

 

HOUSING is without doubt the most important issue facing the vast majority of people living in Karachi. The failure to resolve it is creating stress, uncertainty and homelessness for the poorer and lower-middle-class sections of society and increasing the rich-poor divide.


Since independence, a large housing demand-supply gap has always existed in Karachi. Previously this gap was accommodated in katchi abadis.


However, this is becoming difficult as land that could previously be used for katchi abadis is now required for meeting the demands of global capital and the emerging middle class. Due to this, prices of land in katchi abadis have become unaffordable, even for the better-off among the poor. As a result, entire families have now started living on the streets and in public spaces.Surveys suggest that the majority of these are those who have been evicted from their previous homes due to rising rent and land use changes or due to the break-up of extended families, often because of disputes related to ownership or to a lack of space. Once, Karachi housing-related professionals were very proud that unlike other mega cities of South Asia, people did not sleep in the streets in their city. This is no longer the case.


The demand for strategically located land by commercial interests, often promoted by profit-seeking mega projects, is also evicting people from existing katchi abadis. Since 1997, more than 50,000 Karachi households have had their homes bulldozed. More than half these evictions have taken place in the last four years. In addition, since then 1,777 huts have been burnt, rendering more than 12,000 homeless. Nineteen minor children, four young girls and six adults were burnt alive in these incidents. Plazas have been constructed on some of these locations. About 50 per cent of the evictees have been offered a plot of land in a relocation site. Urban Resource Centre surveys of the relocation sites, which are 20 to 25 kilometres away from the city centre, show that relocation has impoverished the affectees. This is because their travel costs have increased by more than 100 per cent, their women can no longer work, their children’s education has been disrupted, utilities are not available unlike previously, and the long hours of travelling to and from work increase stress and disrupts family and social life.


News items indicate that the state intends to demolish katchi abadis in key locations and build eight-storey flats and commercial centres in their place. The affected katchi abadi residents are to be allotted an apartment in these new developments. This proposal is an open invitation to corruption and will not serve the interests of the residents. It has failed in the case of the Lines Area Project in Karachi and has never been successful in other countries except where there are strong governments.


Fish vendors, hawkers, motor mechanics and small commercial enterprises cannot operate from high-rise apartments. Therefore, the upgradation of katchi abadis is the only viable solution. However, under the present rules only abadis that were formed before March 23, 1985 are eligible for regularisation. This means that about half of the katchi abadi population is vulnerable to eviction. In the interests of justice, equity and pragmatism, it is necessary to extend this cut-off date to June 30, 2007. The Punjab government has wisely extended it to December 31, 2006. The major objection of the anti-katchi abadi-regularisation lobby is that they are ‘eyesores’. However, experience from other Third World countries shows that they can be made extremely attractive with very little investment. This writer has offered to be an honorary advisor for a pilot project of this sort for two katchi abadis.


Surveys for the Karachi Strategic Development Plan 2020, a comparison of the 1981 and 1998 census and other official documents show that housing conditions in Karachi have deteriorated. For example, in 1978 the katchi abadi population was 55 per cent of the total population of Karachi. In 1980 it was 43 per cent. This decline was due to the social housing policies of the Bhutto government in the ’70s.


In 1998 the katchi abadi population was 50 per cent of the Karachi population (700,152 households) and in 2006 it was 61 per cent (1,200,000 households). ADB figures indicate that 50.5 per cent of Karachi residents live below the poverty line. For katchi abadis this figure is 89 per cent of which 54 per cent are chronic poor. This is a major increase from previous surveys.


In addition, in the 1980 housing census houses with separate latrines were 74 per cent, separate kitchens 65 per cent and separate bathrooms 69 per cent. In the 1998 census, these figures have fallen to 47, 48 and 34 per cent respectively.


The Karachi Strategic Development Plan 2020 survey shows that 34.4 per cent of households earn less than Rs5,000 and 41.4 per cent earn between Rs5,000 and Rs10,000 per month. It is estimated that these households spend 75 per cent of their earnings on food items and 18 per cent on utility bills. This means that the current housing market cannot possibly be accessed by over 75 per cent of Karachi households.


Given the above conditions, a massive social housing programme is required for Karachi. An essential ingredient of this plan has to be strategically located land on or near the main corridors of movement or near major work centres. Such land is available but hoarded for speculation. To bring it into the land market, a heavy non-utilisation fee of at least 10 per cent per year of its value is required. This will also make land prices more realistic.


In addition to the extension of the cut-off date, the imposition of the non-utilisation fee and the adoption of upgrading of katchi abadis rather than redevelopment, a few more ingredients for social housing are required. One, between now and such a time as we can close the demand-supply gap, informal settlements will be required. Plans should be developed for the creation of settlements on the Khuda Ki Basti model for a five-year period.


Given the changing sociology of Karachi, the major demand in the next decade is going to be for low- and lower-middle-income built units rather than plots. These can be provided on the basis of recovery of their costs at Rs10,000 to Rs20,000 down payment and a monthly payment of Rs1,500 to Rs3,000 for over a 15-year period. If the price exceeds this, it should be subsidised from other sources.


However, the major problem for making such housing initiatives successful is related to accurate targeting and making speculation difficult. Models for both of these can be developed with the help of katchi abadi CBOs. Initial research also shows that with changes in bylaws and through innovative layouts, development costs can be halved of what they are today. However, none of this is possible without political will and the creation of effective institutions.

(By Arif Hasan, Daily Dawn, 11/12/2007)

 

 

 

Housing deficit

 

Pakistan's housing deficit, currently 6.19 million, is increasing annually by 270,000 housing units, according to official sources, while private developers maintain that the country's housing deficit is seven million units and it is increasing by 350,000 housing units per year.

 

Pakistan requires about 0.5 million new houses every year to cater to the needs of its citizens, but only 150,000 houses are constructed in the country during a year's time, with the exception of last year when 350,000 housing units were established with an investment of Rs 150 billion plus the cost of land for their construction. If the pace of galloping deficit is not contained, knowledgeable circles maintain, then the shortage will rise to a million houses in the not too distant future, badly affecting the life of the common citizens, both socially and economically. In 1998, the officials state, the housing backlog stood at 4.30 million units. Since then, it has increased to 6.19 million. Factors like high population growth rate, inadequate attention towards construction of new houses, migration from rural to urban areas and break up of the traditional joint family system have largely contributed to the acute shortage of houses in the country.

 

The ever-widening housing deficit has resulted in mushroom growth of squatter colonies and slum localities, particularly in main urban centres and metropolitan towns where many families are constrained to live in one-room shanty lodges. Generally, slum-dwellers face many obstacles, which deny them a permanent and decent shelter with a minimum of basic amenities -- water, sanitation, electricity, gas, drainage, and, above all, decent health care and educational facilities. As such, the slum-dwellers are forced to live in sub-human conditions in overcrowded localities. According to a conservative estimate, more than 20 per cent of Pakistan's urban population lives in slum areas that are devoid of basic civic amenities. Some past governments tried to bridge the widening gap between the demand and supply of houses in the country. For instance, in 1985, the Junejo government announced a policy aimed at catering to the housing needs of the citizens, particularly the middle- and lower-income groups. Salient features of Junejo's four-year plan included: 1) free distribution of 2.2 million seven marla plots among the homeless in rural areas; 2) free distribution of three marla plots among the homeless in urban areas; 3) allotment of three marla plots to the homeless in urban areas at nominal rates; 4) construction of one million houses for the homeless people in the country, including at least 20,000 rural and 15,000 urban houses in each province; 5) development of townships at all district headquarters; 6) allotment of 10,000 small plots, ranging from 90 square yards to 140 square yards, to the low-paid government employees in Islamabad; and 7) development and regularisation of pre-March 23, 1985, katchi abadis and handing over proprietary rights to their legitimate owners.

 

After the dismissal of the Junejo government, the establishment and the bureaucracy circumvented the housing policy, so as to accommodate the elite at the cost of middle and lower-middle classes of the society. As a result, the housing problem has continued to grow, both in size and dimension, over the years. Also, against a shortfall of 2.8 million houses in the mid-1980s, the country now faces a deficit of more than 6.19 million housing units.

 

Globally, the construction and housing industry accounts for 10-12 per cent of the gross domestic product (GDP) and seven per cent of employment. Recognising the gravity of housing situation, and the potential of housing and construction industry as productive sectors of economy, the outgoing government accorded priority to this sector -- albeit for a short period. Indeed, the housing industry has a great potential as one of the main drivers of economic growth. It can generate employment opportunities as well as engage at least 36 other supporting industries, thus creating demand for growth of economy on the one hand and alleviating poverty on the other hand. The outgoing government also formulated a national policy for accelerating housing activity, aimed at both employment generation and economic development. The policy was designed to facilitate provision of housing inputs like land, finance and building materials. On June 8, 2005, the concerned authorities informed the National Security Council that the housing sector envisages construction of over three million low-cost houses to partially meet the shortfall at an estimated investment of Rs 900 billion over the next five years. To give a boost to the housing sector, the government enhanced the house financing by banks to 10 per cent from the previous five per cent of net advances, while maximum loan limit was also increased to Rs 10 million from the previous Rs 5 million, debt-equity ratio from 70:30 to 80:20, and loan tenure from 15 years to 20 years. Taking cognizance of the galloping housing deficit, the outgoing government constituted an Advisory Board on Housing and Infrastructure. Chairing the board's meeting in Islamabad on November 23, 2007, which was attended by high officials and private construction companies, Board of Investment Secretary Mushtaq Malik said the aim was to address the issues faced by the private sector and forward recommendations to the concerned authorities. The outgoing government was contemplating to introduce a new enactment with a view to making the housing sector more vibrant, minimising shortfall of housing units, eliminating land mafia and streamlining the business of private housing societies. The move aimed at checking the manipulations of the land mafia and the unscrupulous elements amongst the property dealers by requiring the plot owners to build houses within the stipulated period. In case of failure, their plots could be cancelled or heavy fines could be imposed on them.

 

The proposed enactment also contemplated to make attorney letters, which owners of non-transferable plots issue to the buyers, unacceptable to the authorities, so as to discourage the plots business and bound the allottees to build houses. The proposed law also aimed at protecting the people from cheating by the land mafia by binding the housing societies, while publicising their projects, to declare the land they own, along with lay out plan of their housing schemes, and also surrender plots to the concerned development agencies for building roads, mosques, playgrounds, community centres, etc. Though the fate of that law is not yet known, however, its provisions pertaining to binding the housing societies to declare the land that they own, along with the lay out plan of their housing schemes and surrendering of plots to the development agencies for utilities, is now being implemented. But some unregistered developers still continue to cheat simple folks, who fail to observe legal requirements while booking properties. In view of the magnitude of the housing problem, it was encouraging that the government was seized with the problem and appears to be tackling it. However, the housing deficit is mammoth and it continues to swell. Therefore, it needs to be tackled assigning it the priority that it deserves with a view to meeting the housing needs of the citizens, in particular the vulnerable sections of the society.

(By Alauddin Masood, The News, 09/12/2007)

 

 

 

‘Influx of global capital is to benefit the rich’


The inflow of global capital into Karachi has ensured exploitation in the name of development and the recent spate in the number of luxury housing projects in the city is purely for the benefit of the rich at the cost of the poor. This was the general consensus of speakers at the inaugural session of the Eighth Akhtar Hameed Khan Development Forum held at the National Institute of Management (formerly Nipa) here on Saturday. Though economist Shahid Kardar was to deliver the keynote address on the topic of ‘Global Capital and Land’, he was unable to attend and instead Roland D’Souza, Naseer Memon and Zulfiqar Halepoto spoke.


“Why does global capital want to invest in Pakistan?” asked Mr D’Souza, who works with a local NGO, and said weak regulation in Pakistan was the reason. “Why don’t they invest in America or Japan?” he said, adding that the world as a whole was consuming far more than what it was producing, terming this overreach.


Naseer Memon, who is also associated with an NGO working for sustainable development, said the recent “deluge of dollars into Pakistan was a signal to many that something sinister was afoot in the name of development”.


Describing the waterfront projects in Karachi as ‘destruction, not development’, he said that a big part of global capital went into real estate. Human rights and ecology issues were being overlooked in the name of development, he said, adding that an impending ecological disaster was on the cards.


“Who is global capital for? A former minister has said that after the sea-front project is complete, the city will look like Dubai. So Dubai is our development model. This shows that global capital is serving the needs of the rich,” he said.


“If the land mafia are given the chance, they would even occupy the moon and Mercury,” he commented acerbically, adding that one of the reasons for the current flour crisis might be that the land meant for agriculture and the production of food crops was being gobbled up by “developers”.


He rejected the assumption that FDI – foreign direct investment –was beneficial at all and instead termed it exploitative. In 2001, $12.8 million were invested in the construction sector while in 2006 that figure jumped to $937 million.Mr Halepoto claimed that global capital enabled soft aggression, which allowed hegemony without the need to resort to violence or warfare. He regretted that all the manifestoes released recently by political parties were almost the same when it came to the issue of favouring the free market economy. Most of them ignored the issue of land reforms, and hence for voters, there was not much choice.

(Daily Dawn, 16/12/2007)

 

 

 

780 people killed, 30,000 injured in road accidents

 

Approximately 780 people died and over 30,000 were injured in road-traffic accidents (RTAs) in Karachi between September 2006 and August 2007. Around 65 percent of those injured were motorcyclists, while 20 percent of all RTA injuries involved pedestrians, according to the shocking figures disclosed by the results of a recent survey made as part of the Road-Traffic Injury Research Project (RTIRP).


The project is a joint venture by the Jinnah Post Graduate Medical Centre, the NED University of Engineering & Technology, and the Aga Khan University Hospital (AKUH). Five major hospitals had been selected for data-collection. These included the Aga Khan Hospital, JPMC, Liaquat National Hospital (LNH), the Civil Hospital Karachi (CHK) and the Abbasi Shaheed Hospital (ASH).


Results of the project were discussed Saturday by the Indus Motor Company (IMC) during a press conference at the Karachi Press Club. Speakers stressed on the need for safety helmets, as well as improvements in pedestrian facilities and road engineering.


According to the report, most RTAs occur on Sunday while noon is the time when the probability of accidents is the highest. Moreover, accidents occurring round 08:00 p.m. are found to be fatal. The study also revealed that 90 percent of all RTAs occur in the middle of the two intersections. This proves a lack of awareness among predestrians about the use of roads. It was also found that most accidents are the driver’s fault, while 14 percent of all RTAs in Karachi are the result of faults in the road. The latter number should, according to international safety standards, be under three percent.


The project further revealed that most people injured in RTAs in the city were transported to hospitals via private vehicles. This showed that while a large number of ambulances operate in Karachi, their network is not organized enough to be availed by the public.

“The highest road user group involved in road accidents was that of motorcycle riders and pedestrians, thus there is an urgent need to take measures to educate them and protect this particular user group. Our data shows that of the motorcycle riders who had expired, nearly 86 percent had serious head injuries and were without helmets, thus there is an urgent need to enforce helmet usage,” JPMC director, Dr Rasheed Jooma, said, adding however, that he admired the ongoing helmet drive of the traffic police. “Similarly if the injured is reported to be a driver in that case we found that 96 percent of them were not wearing (safety) seat belts,” Dr Joma said.


“In areas with high traffic density, pedestrians and riders are vulnerable. Pedestrian facilities are therefore extremely necessary,” the JPMC director said. “With such a large segment of the victims being young people, we appreciate IMC’s initiative in starting a School Road Safety Programme, which has already reached out to 20,000 students in over 100 schools.”


Over 33,000 RTAs were recorded in Karachi during the RTIRP. The research has identified 21 major black spots (high accident areas) in the city. Korangi Road, Mauripur Road, Hub River Road, National Highway, Landhi and Super Highway top this list. Around 59 percent of RTAs in these areas involve motor bikes, 8 percent involve buses or mini buses, and 11 percent involve cars. Among the road user group, the highest number of cases involved motorcycle riders (14,519 cases), followed by pedestrians (6,644 cases), with the third highest being pillion riders (6,180). Thirteen percent of RTA victims were younger than 15, nearly 20 percent were between 16-20 years old, and 22 percent were between the ages of 21 and 25. These statistics show that more than half of all road accident victims are less than 25 years old.


IMC CEO Parvez Ghias said that the RTIRP was not about individual or organizational targets, but what about what could be done collectively to improve road safety – first in Karachi and then throughout the country. He further said that IMC was working on a trauma health network in the city.


Former IG Sindh, Asad Jahangir, said that road engineering needs to be improved since there are many places where speed limits are not defined.


At the end of the conference several proposals for improving the situation were discussed. The main proposals include improvement in road engineering, betterment in pedestrian facilities, training drivers (especially people who drive HTVs), identifying bus stops, allocating proper places for hydrants, reducing the movement of dripping water tankers, and enforcing speed limits.


Dr Jooma also stressed on the need for improving the traffic police force, because the personnel are currently “underpaid, under-trained and overused.”

(The News, 16/12/2007)

 

 

Beach-front project

No environmental clearance yet

 

A Gulf-based firm is flouting the country’s laws as it has floated a project for the development of a commercial district on reclaimed land in the DHA’s Phase-VIII without acquiring the mandatory environmental clearances from the government, it has been learnt.


According to sources associated with the project, the developers have reclaimed about 108 acres of land along the Arabian Sea for establishing, among other facilities, residential and commercial apartments in phases.


“We have a master plan approved by the DHA for the project, which is the first of its kind in the city providing breathtaking sea views from every turn. All legalities, including environmental assessments, have been met and the project has been opened to the public today (Dec 9) for the reservation of residential apartments numbering over 4,000”, a source said in reply to queries.


However, senior government officials in the federal and provincial governments maintained that neither the firm in question nor the DHA had approached them so far or applied for the issuance of any NOCs in regard to the project.


Section 12 of the Pakistan Environmental Protection Act 1997 and the Pakistan Environmental Protection Agency (Pepa) review of the IEE/EIA Regulations 2000 requires that every new development project in Pakistan has to be preceded by an initial environmental examination (IEE) or environmental impact assessment (EIA) depending on the size and severity of impact anticipated at the commissioning of the project.


The IEE/EIA mandates the proponent to comply with the government regulations and minimise the negative impact on the environment as far as possible.

After receiving detailed reports prepared from the scientific, micro-environmental, macro-environmental, social and economic points of view, the environmental protection agency concerned holds public hearings and frames a set of environmental management plans and guidelines on mitigation measures for the proponent, if the government agency clears the project submitted to it.


‘Proceedings not necessary’


When contacted, Brig (retd) Javed Ashraf, the DHA’s Director Special Projects, said that the Defence Housing Authority had already got an environmental assessment done through reputed consultants in the case of the waterfront under its jurisdiction, and as such, he did not deem EIA proceedings necessary for the project in question featuring high and mid-rise towers for residential and commercial use.


DHA spokesperson Col (retd) Rafat Naqvi said that the project is being carried out on land given by the DHA and it was understood that it would remain environmentally viable at every stage in the future.


“We have also taken into confidence the stakeholders and acquired clearances for the beach-front activities with the objective that these will, in return, not only bring in some money needed for the authority’s existing infrastructure but would also add value to area”, he said.


However, Pepa’s Director Monitoring Zia-ul-Islam told this reporter that the project in question very much required scrutiny by the government agency before its launching.


‘Proceedings required’


“The EIA proceedings are required to be conducted by the environmental agencies of the government only and such power has not been delegated to any other organisation or land controlling authority in the country”, he said.


The Director-General of the Sindh Environment Protection Agency (Sepa), Abdul Malik Ghauri, said that the developers of the beach-front project, who, surely, must be aware of international standards and best environmental practices, should have met the EIA formality prior to inviting the public’s participation in the project.


He said that no EIA report has so far been received by Sepa from the proponents of the project, which was a violation of environmental laws.


An environmental expert and former deputy director of Sepa, Shahid Lutfi, said that there were a lot of things which needed to be considered before launching of any development project.


“At a time when the sea is already under threat of environmental degradation, conservationists have expressed concern over the state of the waste disposal system, energy base, drinking water supply and treatment and recycling of water and the overall physical, social and biological environment of projects, particularly when these are in the coastal areas or along the sea-front of cities”, he noted.


He was of the view that the project in question should have gone through the regulatory process and the EIA should have been conducted as per the laws of the country, which, in return, would help generate confidence in the public investors and other stakeholders.


“The project has been planned at a spectacular location and as such, its executers should make sure that the sea-front or sea water is not polluted at any stage”, the environmentalist pointed out.

(By Mukhtar Alam, Daily Dawn, 10/12/2007)

 

 

 

Empress Market

Shopkeepers asked to shift to temporary location by Dec 14

At least 629 shopkeepers of the Empress Market, Saddar, have been asked to voluntarily shift their shops to an alternative location provided to them by the city government by December 14, or risk getting vacated by the deadline set by the authorities concerned.


These shops are located at Shahabudin Market adjacent to the Empress Market, where vegetables, meat, birds and other miscellaneous items are being sold. The sources said that these shopkeepers would be provided alternative temporary shops free of cost located at Preedy Street near Saddar Dawakhana until a new market was constructed in the vicinity and soon the foundation stone laying ceremony of a new market would be performed by City Nazim Syed Mustafa Kamal, where these shopkeepers would be given permanent shops.


According to sources, in the first phase, 629 vegetable and meat shopkeepers would be shifted to the temporary location by December 15 and in thesecond phase the other 839 shopkeepers of the Empress Market would be shifted to the new market in a period of ten months.


The court had also ordered on November 29 that the shops be shifted to the alternative location by the stipulated time, the sources said. The new commercial plaza would have all modern facilities including a car parking lot for 2,000 vehicles with eight entrance gates of 20 feet each, besides having a plant for the disposal of garbage.


The source said that with the construction of the new market, and after the shifting of the 1,720 shops of the Empress Market there, the historical building would be preserved as heritage site by the city government.


Currently, the city government collects a sum of 12 million yearly from 1,720 shops of the Empress Market, which is located on two acres of land. According to the sources, the shifting could have been carried out earlier but the matter was taken to the court and litigation caused delay in process.


At present, encroachers have occupied pavements around the Empress Market, causing extreme hardships for pedestrians besides creating obstruction for traffic movement. The encroachers run their business allegedly with the collusion of police and fruit vendors have completely occupied the open space just opposite the Rainbow Center. Similarly private vehicles are parked all along the roads around the Empress Market which also causes a traffic mess.

(By Fasahat Mohiuddin, The News, 03/12/2007)

 

 

 

 

Status quo granted to residents of two Goths

 

A division bench of the Sindh High Court on Wednesday restricted the City District Government Karachi (CDGK) from demolishing the houses of the residents of Nagar Goth and Angara Goth, situated in Liaquatabad Town by granting status-quo to the petitioners. The petitioner Ghulam Mustafa and 50 others through their counsel Shaukat Ali Sheikh submitted that their houses have been marked with particular signs suggesting that they would be demolished. They submitted that their houses were leased and the authorities concerned had extended no notice regarding demolishing them. Making respondents CDGK, Director Removal of Encroachments and Government of Sindh, they prayed the court to stop the authorities concerned from demolishing their houses and if it would be the only option the price of their houses as according to the market value should be given to them.


The bench comprising Justice Yasmin Abbasey and Mehmood Alam Rizvi issued notices to the CDGK, Director Removal of Encroachments and Government of Sindh granting status-quo to the petitioners and adjourned the matter till Jan 29, 2007.

(The News, 13/12/2007)