About Pakistan
The co-operative movement in Pakistan has deep historical roots and continues to play a significant role in multiple sectors, particularly housing. Below is an overview of its development and current state.
Post-Independence Housing Crisis
Following the creation of Pakistan in August 1947, the country faced an acute housing crisis due to mass migration. Squatter settlements emerged rapidly as the state lacked resources to meet the housing needs of its growing urban population. Industrialization and rural-to-urban migration intensified the issue.
To address this, the government issued various laws through Governor’s Ordinances and later Presidential Regulations, focusing on safeguarding co-operative assets and funds.
Growth of Housing Co-operatives in Sindh
In the pre-partition period, the housing co-operative movement was nascent. In Sindh, 46 housing co-operatives operated, primarily in Karachi (22), Hyderabad (23), and Sukkur (1).
In 1949, 24 primary housing co-operatives formed the Karachi Co-operative Housing Societies Union, a central body tasked with housing development. With government backing, including over 1,200 acres of land leased for township development, the Union addressed housing shortages. The Pakistan Employees Co-operative Housing Society Limited was among other notable beneficiaries.
Today, housing co-operatives are widespread throughout Karachi and play a key role in mitigating the province’s housing challenges.
Evolution of Co-operatives in Punjab
In Punjab, the government managed housing through trust organizations like LIT and RIT until the 1970s. Thereafter, both commercial and co-operative developers became active. However, a major corruption scandal in the mid-1990s undermined public trust. Thousands lost their investments, prompting the Punjab government and the National Accountability Bureau to compensate victims. As a result, a 1997 ban halted the registration of new co-operatives.
Limited Progress in Baluchistan and Other Regions
Co-operatives were introduced in Baluchistan in 1950, but progress was minimal until 1955, when limited financial aid was provided. Similarly, housing co-operatives have emerged in the North West Frontier Province (now Khyber Pakhtunkhwa), and some exist in Islamabad. However, data on the number of co-operatives in the capital territory is lacking.
Housing Co-operative Project from the Karachi Co-operative Housing Societies Union
Challenges and Decline in the 1960s
The 1960s saw renewed momentum due to government support and the establishment of Cooperative Banks. Nonetheless, weak oversight, lack of trained personnel, and widespread fraud resulted in massive financial losses for members. Consequently, the government imposed sweeping bans on various co-operatives. While intended to curb malpractice, these measures also penalized legitimate co-operatives and bred public distrust.
Need for Structural Reform
While foundational legislation and administrative structures are in place, they are often ineffective due to political interference and poor enforcement. Co-operatives require sound laws, rigorous oversight, and grassroots support to thrive.
Socio-Economic Context
Although Asia is resource-rich, it suffers from poor planning and outdated technologies, resulting in widespread poverty. Countries like Japan, Singapore, and Malaysia have leveraged co-operation effectively, but others, including Pakistan, struggle with widespread underdevelopment.
Pakistan ranks seventh globally in population and fifth in Asia. Its housing conditions are marked by overcrowding, inadequate sewage, pollution, and poor building standards. Security of tenure is also lacking. With an annual population growth rate of 3%, the housing crisis is worsening.
Provincial Oversight and Jurisdiction
Housing is a provincial matter. Registration of housing co-operatives is managed by provincial authorities, who also intervene when co-ops fail to comply with bylaws. Pakistan comprises five provinces and three territories, each with its own administrative structures.
Housing Demand and Informal Settlements
As of 2008, the housing shortfall was 270,000 units annually. Nearly half the urban population lives in informal settlements or “Katchi Abadis.” These are either unauthorized occupations of state land or informal subdivisions. While some are eligible for regularization, others are not, often due to state development plans or ecological concerns.
Sindh and Punjab implemented Katchi Abadi Departments to address this issue, but progress has been limited. Karachi alone has 650 such settlements. Infrastructure projects have led to widespread evictions, affecting around 180,000 households, as reported by UNESCAP.
Co-operative Housing Project from the Karachi Co-operative Union Societies Union
Role of Housing Co-operatives and Needed Reforms
Co-operatives have provided viable housing solutions for thousands. For instance, Karachi’s Scheme #33 allocates 5,853 acres to 130 housing co-ops, aiming to house 3 million people. Similar efforts exist in Hyderabad and Sukkur.
However, challenges persist. Rapid population growth, lack of funding, land scarcity, and political instability hinder progress. Internal issues, such as poor leadership, illiteracy, and fraud, further erode credibility.
To move forward, co-operatives need:
- Legislative reforms to confer tenure and ownership, especially to women
- Controlled building costs
- Access to microfinance and grants
- Environmental improvements
Ethical leadership and management education are critical for the movement’s success.
Housing Co-operative Projects: Karachi Co-operative Housing Societies Union
Township Development Model
In Pakistan, housing co-operatives typically follow a township model. The state provides large land parcels to co-operatives or the Union, which then develops and leases plots to members. Infrastructure is developed either by the provincial/city authority or the Union, with fees paid by the co-ops. Co-op members, who are tenant-owners, construct their own homes in accordance with approved site plans.
Despite owning the homes, members pay nominal rent to the Union, as stipulated by the land transfer agreements. Property transfers remain under co-operative jurisdiction. Maintenance is typically the individual owner’s responsibility.
Financing Challenges
The state provides land but no financial assistance. Development depends on member contributions. Any funding disruption halts progress and reduces member confidence. Adequate financial mechanisms are essential to break this cycle.
Public trust is slowly being restored through the efforts of competent co-operatives and dedicated individuals. Government support and public education campaigns could significantly strengthen the sector.
KCHSU has proposed a Housing/Shelter program for low-income communities, currently under government review. If approved, it will combine land allocation with internal funding to improve living conditions. A proper financing framework is considered vital for attracting domestic and international investment.
KCHSU also proposes to revive the Sindh Provincial Co-operative Bank (SPCB), offering to modernize its operations and inject working capital. The goal is to establish a transparent and effective loan system.
Legal Framework
Key legislation applicable across Pakistan includes:
- The Co-operative Societies Act, 1925 (extended nationwide from Sindh in 1965)
- Co-operative Societies Rules, 1927
- Sindh Co-operative Housing Authority Ordinance, 1982
These laws govern registration, operation, and supervision of housing co-operatives.
Current Scope of the Co-operative Movement
Pakistan has no national body coordinating housing co-operatives. Activities and effectiveness vary by province. Each province does have a dedicated co-operative department to promote and monitor developments.
| Province |
Housing Co-operatives |
Members |
| Pakistan |
2,687 |
1,955,190 |
| Sindh |
1,275 |
855,989 |
| Punjab |
669 |
647,000 |
| Other (KP, Baluchistan, Islamabad, etc.) |
743 |
452,201 |
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