Urbanization in Pakistan: Urbanization in Pakistan: Challenges and Options Paki ki I stan nstitute of Devel E opment conomics (PIDE) Pakistan

Transcription

1 Urbanization in Pakistan: Challenges and Options Pakistan Institute of Development Economics (PIDE) Pakistan

2 Introduction The rapid growth of cities is a continuing process in developing economies including Pakistan In Pakistan Level of urbanization has increased from 7 percent in 1951 to 36 percent in 2010 Annual average growth rate is 3.1% ( ) which is higher as compared to South Asia s figure of 2.7% Pakistan will be home to a massive urban population of 130 million in 2030 with one of the largest urban centers in the world

3 Introduction Regions/Countries Urban population Urban slum pop % of population % change per annum % of urban pop Afghanistan Bangladesh Bhutan India Maldives Nepal Pakistan Sri Lanka South Asia ASEAN ECO SAARC Africa Europe LAC World

4 Introduction

5 Introduction The rapid pace of urbanization in Pakistan pose The rapid pace of urbanization in Pakistan pose significant challenges in terms of: Eff i b Effective urban governance Public service delivery Urban Poverty

6 Urban Governance Issues Failure to put in place a system of local governance City district governments established under Local Government Ordinance (2001) Abolished and no longer functional Reversal of local governance to municipal and local development authorities These authorities lack capacity for modern management of burgeoning cities such as Karachi and Lahore

7 Urban governance issues

8 Urban governance issues 10 cities where the urban population is more than one million in 2030 Cities Population in 2030 (000) Karachi Lahore Faisalabad 6192 Rawalpindi 4149 Multan 3025 Hyderabad 3005 Gujranwala 3143 Peshawar 2778 Islamabad 3175 Quetta Sargodha

9 Public Service Delivery Issues Public service delivery is woeful in major urban centers as well as towns Lack of urban planning Shortage of sewerage and drainage facilities Land market issues Housing issues

10 Public Service Delivery Issues Public service delivery hampered by lack of adequate financing. Municipal authorities rely on transfers from the provincial governments Little capacity to generate their own resources through taxation Property tax needs to be devolved to the local authorities for better incentives for resource generation at the local level.

11 Urban Poverty Urban poverty Urban poverty is distinct from the rural poverty with respect to its incidence, economic, demographic and political aspects In , urban poverty increased to 14.1 percent

12 Urban Poverty Recent rise in urban poverty is mainly attributed to slow economic growth with limited it employment opportunities, low development expenditure, low private investment, continuing rural to urban migration, high inflation, poor governance, and inadequate provision of social services. This massive poverty with unemployment raises severe challenges for the process of urbanization

13 Options Given the rapid increase in urban population, a prudent and efficient local government policy is needed in Pakistan There is a need for capacity building of local authorities as these lack administrative i ti and technical expertise. The Devolution process will only be effective if local governments have enough human and physical infrastructure.

14 Options Provision of public amenities is essential for economic growth and prosperity Urban areas are confronted with enormous housing deficit, estimated to be 2.7 to 3 million units. Therefore access to housing finance along with innovative construction strategies in a complex urban setting is essential to address the housing deficit.

15 Way Forward The Vision 2030 and New Growth Strategy (NGS) for Pakistan recognizes cities as the primary engines of growth, development, and innovations in Pakistan. The NGS proposes creation of urban centers in Pakistan that could compete globally in the future with the other knowledge economies. The role of cities in economic development is clear from the fact that cities are producing more than 80 percent of global GDP. It is because; cities act as hubs of knowledge, innovations, creativity, and institutions

16 Way Forward The development of new cities will generates more jobs, attract more investment and boost construction industry.

17 THANK YOU