The Potential of Microfinance Housing After Pakistan Disasters
Fariha Tariq
Traditional modes of providing physical infrastructure, especially housing after disaster on un-improvized settlements for the urban poor is unlikely to meet the increased demand. In Pakistan, owning a decent house seems an unachievable dream for the poor especially after a series of natural disasters. An innovative strategy involving a participatory approach is an urgent need of the time. This requires planning for the provision of housing with a view to subsequent upgrading, which is to be managed by householders and communities. Especially for low-income households, there is a dearth of financial resources to build/renovate damaged and destroyed houses; this is worsened by the fact that non-sustainable methods and materials that are used continue to be vulnerable in future disasters. There is an urgent need for policy change in Pakistan towards innovative housing strategies including financial and technical assistance programs. The housing solution proposed in this project revolves around global movement of microfinance that is expanding day by day to empower low-income communities through small-scale loans. This study discussed the financial solutions related to incremental housing based on empirical knowledge gained from case studies all over the world. Implications for households and institutions are addressed and reference is made to the experiences of the low-income households and microfinance practices in Pakistan.