Government should focus on expanding inner city markets, should not allow any development scheme to have plots of over 400 square meters, decrease fares in public transport to support the poor, encourage sub-national government financing, reduce commercialisation levy and local government be given financial autonomy. These are the few suggestions made by Planning Commission. The report has addressed certain issues like urban economy, transport, land reforms, etc, in detail and gave certain proposals to address these problems. Although the report was made some eight months ago, still there is no progress being made in this regard. Demographic trends show that the country’s population has been rapidly urbanising, with an average annual rate of urbanisation exceeding four per cent, since 1951. It is estimated that by the year 2030, Pakistan will be predominantly urban with 45.6 per cent of its population living in urban areas and about 12 cities housing more than one million people. The urban population recorded during the 1998 census was nearly 43 million and is currently estimated at 63.1 million. The tremendous challenge of absorbing such a massive number of people in urban areas and providing them with shelter, food, employment, healthcare, education, municipal services and recreation facilities is made more difficult given shortage of urban facilities and resources, skilled manpower and good governance. Despite the challenges, urban areas demonstrate immense economic potential to generate growth in the country. Economic activity in urban areas produces at least 78 per cent of the national wealth (GDP) of Pakistan and can be instrumental in enhancing prosperity and increasing per capita income.
State of Urbanisation
In 1981, about 24 million people were living in urban areas that represented 28 per cent of country’s total population. In the 1998 census, the urban population increased to 43.5 million, constituting 32.5 per cent of the total population (143 million). The total population of the country has now reached 173.5 million and the urban population 63.1 million, increasing the level of urbanisation to 36.3 per cent.
Urban Economy
Cities are growing fast and contributing to economic growth. For example, Karachi alone accounts for 60-70 per cent of the national revenue and 40 per cent of value-added in the manufacturing sector. Changing structure of the economy indicates that manufacturing and the services sector are driven force in urban economy. Informal sector also plays a major part in developing economies absorbing some 30 to 70 per cent of urban labor force, reflecting an inability of the modern formal sector to absorb the growing urban labour force. Sectors like construction, wholesale and retail trade, transport and communication and, even manufacturing, operate with high levels of informal employment.
Recommendation: There are substantial market potential and marketing opportunities in the inner-city areas. Market intelligence can help cities attract investment in often overlooked inner-city areas. The city cluster economic development process can be useful in accelerating economic growth in urban areas through infrastructure development, provision of financial inputs and creating better environmental conditions. The capacity building to improve local government management of urban areas is essential. The local governments should be given financial autonomy and should be encouraged to raise more revenues from local taxes.
Urban Poverty
A high unemployment rate, increase in prices and a deteriorating law and order situation in urban areas have increased the incidence of urban poverty.
Recommendation: Improve employment opportunities for the poor in key sectors through technical education and provide quality and affordable healthcare infrastructure to combat urban poverty. This can be done through the promotion of affordable insurance cover and through the establishment of public sector utilities subsidised by local government taxes.
Urban Land
Almost all cities in the country are faced with acute shortage of land which has resulted in extremely high land prices. Land at appropriate scale and price is not available for industrial and commercial enterprises or housing and infrastructure projects. The available land is also being used inefficiently due to extravagant nature of existing land use regulations and planning standards and prevalent informal processes. Inability of cities to meet the land and housing shortage has led to large scale encroachment on public and private land and the proliferation of ‘katchi abadis’.
Recommendation: Expand land supply in urban areas through renewal projects in the inner areas and promote densification in new development projects, reserve state land with metropolitan areas for low-income housing and deliver this land through market mechanisms and halt the use of the Land Acquisition Act 1894.
Building Bye-laws
Existing laws, byelaws, zoning regulations and policies impede an efficient and economical use of land. These laws and regulations are mostly anti-street, anti-pedestrian, anti-mixed land use, anti-high densities and anti-public space. They do not provide sufficient space for amenities such as schools, health facilities, parks and playgrounds.
Recommendation: Create a governing body to maintain and monitor standards and practices among property developers, regulate property dealers and agents and enforce professionally set standards. Amend the zoning and building regulations and match the market preferences at different locations and zones to support high density, high-rise and mixed land use patterns. Review byelaws, such as those levying commercialisation charges, as these have become severe constraint on development of rental premises for residential and commercial purposes. Introduce certification process for the property dealers in the formal sector that ensures a minimum knowledge of property law, property transference and the dynamics of property markets.
Physical Infrastructure
Physical infrastructure continues to be a serious problem in urban areas. Generally, it is poor in quality and its coverage limited and inequitable. Underground sources of water supply are fast depleting due to heavy withdrawal and surface water is threatened with municipal sewage and waste water discharges and pollution.
Recommendation: Divert sewage to treatment plants in large parks so that it can be used for horticulture purposes. Similarly, in small towns, divert sewage for use in agriculture to generate revenue from its sale. Discontinue building open drains for sewage disposal in small towns. Make all sewage flow through an underground system. Install bulk water metering for specific purposes and areas so that water theft and usage can be easily monitored. Initiate solar pumping for water supply to save on energy costs and cater to disposal failures during periods of load-shedding. Make pavement construction an integral part of all road construction within towns. Support all road construction and street paving through an effective, open and paved drainage system so that road surfaces are not damaged.
Social Infrastructure
Socio-cultural and entertainment activities in the cities tend to play a leading role in economic diversification, enhancing social integration and engaging the younger generation in healthier activities. Cities are losing multi-class social, cultural and entertainment activities and the infrastructure that support and promote them, such as art galleries, theatres, cinemas, exhibition halls, fair and festival grounds, parks and playing fields, public meeting places, city halls, tea and coffee houses, art schools and libraries: all are close to extinction except for the elite.
Recommendation: Develop and implement guidelines for an aesthetically pleasing, energy efficient, socially responsive architecture, signage and street furniture. Integrate heritage conservation into the overall cities/towns planning and development process. Allocate space for educational/academic, entertainment and recreational activities based on a study of demand. Develop in and around shrines, parks, transport and cargo terminals, sports facilities etc.
Housing and Real Estate
Urban areas are confronted with enormous housing deficit, estimated to be 2.7 to 3 million units. The supply side is extremely weak, meeting about one-third of the requirements. Public sector housing schemes are few and take very long to develop. Hence the deficit is aggravating. In the recent floods nearly half a million housing units have been affected in the urban areas making the housing situation worse.
Recommendation: Establish Housing Price Index (HPI) and Housing Access Index (HAI) with the assistance of Federal Bureau of Statistics. Subsidize government land within metropolitan areas through market mechanisms for low income housing. Roll back the benefits and exemptions conferred on urban elites. Allow low-income housing on 60 square meter plots, long and narrow, width to depth ratio 1:3, with permission to build ground plus 2-1/2 floors. The built-up area of the plots should be a maximum of 70 per cent and a density of 1,500 to 2,500 persons per hectare may be achieved. Create independent neighborhoods around open spaces rather than along streets through planning. Develop (and locate) low-income housing within the city through incentives to developers and landowners, and a market based approach for providing subsidies to low income groups. Remove restriction on height of apartments for lower-middle and middle-income groups allowing a minimum density of 1,500 persons per hectare. Plan all commercial and office complexes mixed use with 30 per cent of the floor area reserved for residential and recreational purposes. Regulations for such areas should be developed as a result of an urban design exercise specific to the area in which such complexes are to be located.
Urban Transport
Urban transport is a key factor in improving living conditions and lowering the cost of transportation and of doing business in the cities. Traveling between and within cities have increased manifold due to growth of population, increased economic activities and low density haphazard sprawl segregating homes from places of work. Due to bad traffic management, roads have become excessively congested.
Recommendation: Due to an absence of affordable, flexible and comfortable transport, the number of motorbikes as an option is on the increase in Pakistan. The number of motorbikes, for example, in Karachi, has doubled in the last six years. The only problem with the promotion of motorbike use is that women do not drive motorbikes in Pakistan. This restriction can be overcome by the promotion of new societal values. Segregate vehicular and pedestrian movements to remove congestion. For this, proper pedestrian-friendly footpaths are required in addition to car and motorcycle parking arrangements. However, public money should not be employed in building parking infrastructure for the benefit of private automobile owners. Instead, local governments should be encouraged to raise parking fees and promote taxi/public transport services. Adopt Bus Rapid Transport options as opposed to rail-based systems on account of lower cost and the flexibility in selection and change of routes. Replace rolling stock for bus systems every six to seven years as opposed to thirty years for the train system. Consider floating of municipal bonds to raise funds for the financing of transportation systems. Subsidize public transport fares for the urban poor. This can be done by raising road tax on over 1300cc vehicles, adding an insurance surcharge for vehicles of over 1300cc, removing duties on the import of buses, charging for advertising on transport vehicles and on bus stops.
Urban Security
Security of life and property is one of the most basic functions of the state. This security is also related to prevention of accident through any form (fire, disaster, building collapse, terrorism, etc. Human security in urban areas has worsened. This is due to a breakdown in law and order as well as a result of societal transformation from caste-based to class-based social structures.
Recommendation: Provide a responsive governance system and efficient and accountable line departments. The creation of such a governance system and line departments cannot take place without political will and the creation of required and trained manpower, leadership and knowledge of the problems the people of Pakistan face in their daily lives. Review security arrangements provided to the officials of Pakistan’s establishment so as to minimise the socio-economic disruption and alienation that the current procedures are creating. These arrangements cause hardship to urban dwellers, affect their livelihoods and healthcare systems.
