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Minimum Wage in Pakistan and house affordability

Minimum Wage in Pakistan and house affordability

Pakistan minimum wage is set every year in annual budget. Minimum wage has been raised from PKR 13,000 to PKR 14,000 for the year 2016-2017. There are two different opinions on raising minimum wage. One group says minimum wage is necessary for better life style. But according to other group, increase in minimum wage results in less hiring of labor force. But million dollar question is, ‘can people on minimum wage afford to buy a house in Pakistan’?

House price to minimum wage ratio in Pakistan

If we take small houses in Pakistan, 3 Marla, average price is 50 Lakh rupees. So a person on minimum wage can buy 3 Marla house in Pakistan after spending 30 years of salary. Whereas world affordable house price to income ratio is 1:5. This clearly shows that houses are highly unaffordable in Pakistan and people on minimum wages cannot buy a house.

Providing affordable housing to people on minimum wage
Building government housing

Best way to provide housing facility to people on minimum wage is to build government housing. Government of Pakistan needs to build cheap flats in bulk quantity to provide housing assistance to people on minimum wages. Ashiana Housing Scheme is a great step in this regard but this is even for the low middle class people. For people on minimum wage, government of Pakistan should build free homes. Government of Pakistan should include housing development in its infrastructure developments. Pakistan urgently needs to address the housing shortage, which is reaching 10 million units.

Conclusions

It’s very hard for the people on minimum wages to afford a decent home in Pakistan. Government of Pakistan should initiate housing assistance for the people on minimum wages. Unless we take prompt actions, housing will be a distant dream for people on minimum wages.

Recommended:
Housing in Pakistan

(3) Comments

  1. WITH GREAT GRIEF AND SORROW I HUMBLY SUBMIT THAT OUR
    SO CALLED ELECTED RULERS ARE DISHONEST AND CORRUPT TO THE CORE . I WILL RESTRICT MYSELF TO SINDH , ALTHOUGH THE LEVEL OF DISHONESTY , GREED AND CORRUPTION IS ALMOST THE SAME . HERE IN SINDH THAT HAWK EYED GHADDARI DOES NOT LET GO ANY SPOT ANY SOURCE TO GRAB EVERY LAST PENNY AVAILABLE FOR DEVELOPMENT. RUPEES IN BILLIONS ARE SMUGGLED BY HIM
    TO DUBAI THROUGH DEVIOUS MEANS. BILLIONS OF RUPEES ARE BURIED IN THE LAWNS AND BASEMENTS OF BANGALOWS OWNED BY HIM OR HIS HENCHMEN OR HIS HENCH MEN .THE
    LIST OF HIS AND ALSO HIS COUNTER PART IN PUNJAB IS VERY
    LONG . HE SMELLS MONEY . NOT THE LAST NAIL IN THE COFFIN OF HIS MISDEEDS , HE DID NOT SPARE THE MONEY
    MEANT TO BE GIVEN TO OLD AGED NEEDY PEOPLE AND SOLD
    BARREN AND WORTHLESS LAND TO THAT DEPARTMENT FOR
    AN ENORMOUS AMOUNT . HOW MUCH MONEY IS ENOUGH
    FOR SUCH BANDITS ? GOD ONLY KNOWS . HOW LONG WILL THEY LIVE ? AT LAST WHEN THEY WILL DIE , THEY WILL HAVE
    TO ACCOUNT FOR EVERY SINGLE PENNY .HERE THEY MAY
    HAVE CURRENCY NOTES PRINTED BUT THESE NOTES WILL
    NOT HELP THEM IN THE NEXT LIFE . THEY STILL HAVE TIME
    TO WAKE UP AND DO SOME GOOD DEEDS . ONE OF THOSE IS
    TO BUILD FLATS FOR THE NEEDY MASSES WHOSE VOTES
    THEY BUY AND LATER FORGET THEM . IN 1949/50 LATE
    MR LIAQUAT ALI KHAN DID THAT AND EVERY REFUGEE FAMILY
    WAS GIVEN A ONE ROOM SHED ON 90 SQ YARDS PLOT AND
    A COMMUNITY WATER TAP AND ALSO A ROW OF TOILETS.
    THIS CAN BE DONE TODAY TOO . BUT UNLESS GOD GETS
    PAKISTAN RID OF THESE VULTURES ONE MUST NOT EXPECT
    ANY GOOD FROM OUR DEMOCRATIC DICTATORS . PERHAPS
    LAST SOLUTION IS ARMY RULE IN PAKISTAN BECAUSE THESE
    POLITICIAN RASCALS ARE VERY GOOD AT RIGGING THE ELECTIONS . SO ENOUGH IS ENOUGH . THIS COUNTRY IS
    HEADING TOWARD A BLOODY REVOLT . PEOPLE ARE SICK AND
    TIRED OF CORRUPT POLITICIANS WHO WERE THE SIGNATORIES OF THE INFAMOUS CHARTER OF DEMOCRACY.
    MAY GOD SAVE PAKISTAN AMEEN .

    Reply
  2. Shahbaz baloch

    on   said 

    AoA, what will cost on simple single story 400sqyd house with 4 room attach bath d/d and with TR gadhar roof?

    Reply

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