The population explosion coupled with escalating property prices and rising inflation, has worsened the housing problems for low-income people and Govt employees in the urban areas of Khyber Pakthunkhwa.
The situation has reached a critical point in KP where around 2.5 million additional housing units are needed to meet the growing demand of the poor and underprivileged, experts say.
As Pakistan’s population hits a new high of 250 million, the gap between available housing and demand has widened dramatically, particularly in KP, where 2.5 million homes are urgently needed for homeless.
The growing challenges are most acutely felt by salaried class and marginalized groups, who are struggling to secure affordable housing units for families amidst skyrocketing land prices and limited economic opportunities, forcing them to pay hard earned money as rent for years.
Local residents are expressing growing frustration over the lack of affordable housing options in Peshawar. Every year, I see my house rent increase while my salary remains the same,” says , Waris Khattak, an employee of a Govt department in Peshawar.
“It seems impossible to save money for own house due high inflation and land cost at Peshawar. Many like me are forced to endure overcrowded living conditions or are compelled to live far from their workplaces in search of affordable housing.”
“Affordable housing is a fundamental right for all citizens of Pakistan,” argued Professor Dr Zilakat Malik, former Chairman of the Economics Department at the University of Pakistan.
He explained that rapid population growth, rural-to-urban migration, and soaring land prices have created a dire housing backlog in Khyber Pakhtunkhwa’s major cities.
While some governments have tried providing affordable housing on urban peripheries to relieve overcrowding in city centers, he said this has often led to additional social and economic issues besides traffic jam and pollution.
“Relocating people to the outskirts has resulted in them being isolated from essential services, job opportunities, education institutions, hosptals and social networks,” he added.
He said this issue has been exacerbated by political instability, frequent changes in government, and an unchecked rise in property prices, particularly in KP, where affordable housing remains largely out of reach for the salaried class and the poor despite tall slogans of PTI.
The rapid urbanization of agricultural land in areas such as Peshawar, Mardan, Abbottabad, and Swat has turned fertile land into unplanned towns, further contributing to the housing shortfall and low agriculture production.
Dr. Zilakat said projects that to meet the growing demand of 600,000 new homes per year in KP alone, at least 1.
1 million new units will be needed annually over the next 14 years to clear the current housing backlog of 10 million.
In Peshawar, where the population has already surpassed 1.97 million, the housing problem is projected to worsen, with the city’s population expected to reach 2.8 million by 2030. This will likely consume even more agricultural land, further exacerbating the food security situation.
The high cost of land has made housing unaffordable for many. The price of a five marla house in Peshawar has soared to Rs 20 million, while rents have surged to Rs 40,000-far beyond the reach of low-income workers.
Ikhtair Wali, spokesperson for the Pakistan Muslim League-Nawaz (PML-N), claimed that the PTI-led government failed to deliver on its promises of constructing 5 million houses, worsening the housing situation in the province. “Rather than addressing public issues, taxpayers’ money was wasted on unnecessary gatherings,” he claimed.
In response to the growing demand for affordable housing, the Provincial Housing Authority (PHA) initiated a survey under the Naya Pakistan Housing Program, identifying a shortfall of 750,000 houses in KP.
According to PHA spokesman, the survey revealed that significant land, around 262,500 kanal, is required to build these houses. Peshawar alone needs 104,897 homes, with other districts such as Mardan and Swat requiring over 60,000 units each.
Several housing projects are being developed across KP, such as the Hangu Township on 8,400 kanal and the Jalozai Phase III project in Nowshera. Other initiatives include the construction of 900 residential flats in Peshawar, and a 20-story high-rise building in Nishtarabad with 300 low-cost flats for underprivileged families.
Additionally, large-scale housing projects in Swat, Mardan, and other areas are aiming to provide affordable homes for thousands of families. The PHA and the KP government are also collaborating on the Surizai project in Peshawar, which will build 8,000 low-cost housing units in the first phase. While these projects offer hope, they are only a drop in the ocean when compared to the overall demand.
Dr Zilakat stressed that the KP government must adopt more sustainable, long-term strategies to bridge the housing gap, including better land utilization, improved financial support for low-income buyers, and more coordinated urban planning.
As housing prices continue to soar, and thousands of poor families remain without adequate shelter in KP, it remains to be seen whether the government can make affordable housing a reality for them who need it most in Khyber Pakhtunkhwa in near future.
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