KARACHI, June 4: The housing backlog, which stood at 4.30 million as per housing census 1998, has been currently projected at 6.19 million. For meeting the housing shortfall in the next 20 years the overall housing production has to be increased to 500,000 housing units annually, the Economic Survey 2005-2006, which was released on Sunday, estimates.

The present housing stock is also rapidly aging and estimates suggest that more than 50pc stock is over 50 years old. It is also estimated that 50pc urban population now lives in slumps and squatter settlements.

The survey realises that providing shelter to every family has become a major issue as a result of rapid urbanisation and higher population growth. On the other hand, the provision of house has not kept pace with the above phenomenon and resulted in the deterioration of living condition, increased health hazards and rapid growth of slums and squatter settlements (Katchi Abadies).

It says that meeting the backlog in housing, besides replacement of out-lived housing units is beyond the financial resources of the government. This necessitates putting in place a framework to facilitate financing in the formal private sector and mobilise non-government resources for a market based housing financed system.

The government is, therefore, encouraging participation of local as well as foreign investors/developers and private sector companies in housing sector to build more and more housing projects to meet the demands of a vast segment of society, the survey adds.

The government has already formulated a National Housing Policy in order to revitalise the housing sector by providing incentives to construction industry and private sector builders.

The survey has highlighted the salient features of the Housing Policy relating to issues like land, resource mobilisation, enhanced credit facility, legal and financial framework, promoting home ownership, rural housing and development of intermediate and secondary towns.

Under the policy, the annual disbursement of HBFC loans will be enhanced to Rs7 billion from Rs1.2 billion in the next five years.

The survey says that a large number of policy measures have so far been implemented resulting in the improvement of overall housing situation in the country besides availability of affordable housing finance to the extent of Rs34 billion in the market.