The Asian Development Bank (ADB) has highlighted the urgent need for a new urbanization approach in Pakistan, as the current challenges of failing public services, declining quality of life, and reduced economic productivity are eroding the economic and social advantages of urban agglomeration.

In its report titled ‘Pakistan National Urban Assessment: Pivoting towards Sustainable Urbanization,’ the Manila-based lender emphasizes that Pakistan’s existing urban development model exacerbates these issues and must be replaced with a sustainable urbanization model. This proposed model should effectively harness the economic, environmental, and social benefits associated with increased agglomeration. It requires strong planning and evaluation capabilities that span vertically, horizontally, as well as spatially and temporally, and should be guided by proactive institutions that support citizens’ social and economic welfare with essential public services and infrastructure, all while mitigating negative social and environmental impacts.

The report advocates for visionary urban planning that addresses the known challenges of urbanization through a multi-sectoral approach, optimizing the allocation of land, capital, and labor across traditional boundaries to maximize social, environmental, and economic benefits for all. Additionally, it calls for a progressive reinterpretation of urban spaces to minimize sectoral negative externalities in areas like housing, energy, transport, water, health, education, recreation, social services, and the environment. Such a comprehensive planning strategy will allow cities to develop inter-sectoral synergies, maximizing benefits for everyone.

The report suggests that deploying urban units with multi-sectoral expertise can facilitate the transition to an integrated urban planning approach. Furthermore, it recommends that urban planning leverage the increasing value of land to fund public services. By aligning service costs with beneficiaries through user fees, and increasing public revenues from urban land development, services can be continuously improved and expanded, incrementally increasing revenue sources.

By linking service liabilities to investments by urban service providers and mandating social and environmental considerations in property developments, ongoing budget pressures on local governments can be alleviated. Finally, land allocations and development approvals should be progressively redefined to allow public infrastructure to lead planned urbanization, rather than respond to disorganized urban growth. This can build on the existing Local Government Act (LGA) provisions, empowering local governments to approve land use plans and control development proposals.

Provincial governments need to address the disconnect between local government acts and their practical implementation. Although the various provincial local government acts (LGAs) have assigned the responsibility of municipal service provision to local governments, they still retain policy-making authority at the provincial level. However, provinces have made minimal progress in transferring control over the funds or personnel necessary for delivering municipal services in urban areas.

According to the ADB report, comprehensive land use and master planning frameworks in Pakistan should emphasize the development of vertical mixed-use buildings and pedestrian-friendly urban spaces. These frameworks should promote the creation of public and community spaces while accommodating a diverse array of commercial, cultural, environmental, and educational activities.

Moreover, the frameworks should encourage investments in high-rise, inner-city revitalization projects and the vertical redevelopment of informal settlements. This should be supported by policies that require property developers to invest in affordable housing, energy efficiency, and green spaces.

Currently, urban housing supply has not kept pace with the rapid growth of urban populations. With an average annual supply of 150,000 new housing units, there is a significant shortfall compared to the demand for 350,000 units per year. This discrepancy resulted in a housing deficit of nearly 10 million units in 2018, leading to 57 percent of urban residents living in informal settlements.

The overcrowded and poor living conditions in informal settlements starkly contrast with the new single-family housing developments in suburban areas and the exclusive gated communities in city centers. Throughout the years, as Pakistan’s population surged, urban centers have struggled with development that failed to accommodate massive population shifts. These cities are now plagued with “illegal and informal settlements that do not comply with planning rules or building codes,” resulting in substandard living conditions, disrupting city life, and degrading the urban environment.

Alarmingly, the report highlighted that Pakistan’s population is projected to reach 400 million by 2050, making it one of only eight countries expected to account for more than half of the world’s population. Unfortunately, the nation is unprepared, especially in terms of city infrastructures needed to handle this growth.

Currently, provincial capitals house disproportionately large portions of the provincial urban population, thus bearing the brunt of the political and administrative pressures of urbanization. To further complicate matters, crucial economic adjustment plans necessary for macroeconomic stability and growth remain absent. The root issue lies with the absence of effective local governments. The ADB report highlights that the institutional framework for urban governance is muddled by “partial devolution.” Although the 18th Amendment mandated the transfer of powers from the central to provincial governments, it also required provinces to further devolve authority to local governments. However, political elites have resisted sharing power at the grassroots level.

The “partial implementation of provincial local government acts (LGAs)” has resulted in a complex urban governance model, with multiple stakeholders involved in urban planning, land management, and municipal services. This model suffers from unclear mandates, overlapping functions, and competing interests. Without adequate funds or personnel transferred to local governments, the devolution of functions has left both provinces and local governments unable to efficiently deliver and manage urban services.

It is telling that the only time Pakistan had a robust local government system was under a dictatorship. Since then, democratic governments have resisted establishing local governments and have only held local elections when compelled by the judiciary. This reluctance contributes to the current disarray, as leaders are unwilling to empower citizens to manage their own affairs according to local needs and aspirations. This issue demands urgent attention similar to that given to broader economic concerns. The problem extends beyond urban management to the very system intended to deliver it.