1. A model for low-income housing in Pakistan September 2009

2. Our vision Healthy, happy communities across Pakistan Affordable housing for all Sustainable delivery of housing Housing scheme

3. Housing scheme Housing: A Global Crisis Slum housing as a percent of total housing stock (select cities) Caracas, 52% Rio, 15% Tunis, 27% Dar us Salaam, 49% Karachi, 40% New Delhi, 18% Lahore, 35%

4. The State of Housing in Pakistan Population:164 m Average Family:6.6 Avg Hhold Income: PKR 9000/month Housing Shortfall:7 mill units Annual Incremental Demand: 300,000 units Approximately 10 million families living in slums in Pakistan (UNHabitat, 2003) Source: Population Census Organization

5. Typical Developments Our Developments Most developers build houses…we build communities

6. AMC innovations solve housing issues Affordability Market coverage Informal Ease of titling for the poor Quality and infrastructure FormalAMC Low cost, <30% monthly income Flexible financing* *Loan amount for all construction costs available at 15% effective interest rate over 15 years Appropriate stock for majority of housing demand in Pakistan Safe, easy process of securing property title Masterplan with int’l environmental and construction standards

7. Feedback from customers “After years of living in a physically abusive environment with my brothers and their families, I am now able to afford an independent home on a minimum wage salary” Muhammad Akram Security Guard Monthly income: PKR 6000 “With two mentally retarded daughters, I used to often worry about where they would go after I die. After 20 years of paying rent, my dream of a secure future is a reality” Naveed Ahmad Driver Monthly income: PKR 10,000

8. June 2007 Kala Shah Kaku 12 KM from Lahore 3 KM off GT Road 20-acres

9. June 2008

10. June 2009

11. Today: (2 years from start) Continuous Improvement by the Community Over 65% plots sold Nearly 1000 active residents, with many more in process of moving in Mosque, schools, commercial area, income generation and community development programs available

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13. 13 How do we do it? Provide flexible financing For-Profit Sustainable Venture Understand the true nature of demand Filter for speculators Focus on low-cost land and pre-development Treat people as customers Build communities, not houses Sell premium lots

14. Product 3 Room Includes water & sewer electricity roads community infrastructure N/A Rs 2820Rs 3540 Rs 4760 Monthly payment* *Loan amount for all construction costs available at 15% effective interest rate over 15 years 1 Room2 Room Plot only Rs 80,000 Rs 255,000 Rs 320,000 Rs 430,000

15. Our Homes

16. Our Senior Team has >35 years experience Jawad Aslam, Chief Executive Officer MBA graduate (USA) 12 years of work experience 4 years in low income housing in Pakistan Amjad Awan, Chief Marketing Officer MBA graduate (UK) 18 years leading organizations in Pakistan Most recently heading the main CNG rickshaw company in Pakistan Saad Irfani, Chief Financial Officer Graduate (USA) Over 5 years of investment banking and consulting experience (USA) Housing scheme

17. Our Investors Team Housing scheme USD 90 million non-profit venture capital fund that addresses poverty through market-based solutions US based USD 40 million for-profit social venture capital fund that supports social enterprise globally Geneva based First commercial financial institution to systematically extend mortgages to lower income people at Khuda-Ki-Basti Lahore. Partnering in future projects. Under consideration Deutsche Bank, World Bank, Soros Economic Development Fund, Aman Foundation, Grey Matters Capital, PPAF, Cities Alliance

18. Our Advisory Board Zubyr Soomro – Acumen Fund Representative. Former Citibank Pakistan head Tasneem Siddiqui – Chairman of Saiban Nadeem Hussain - CEO of Tameer Microfinance Bank Babur Rafiq – Managing Director of Levis Pakistan David Kyle – CEO of School Finance Company; Former COO of Acumen Fund Adnan Asdar – CEO of Pakistan’s leading project management company Zaighum Rizwi – Housing Finance Consultant, World Bank Housing

19. Public-Private Partnership Structure Private Investors Private Limited Company: Low Income Housing Project 1 AMC 51% Ownership Finance land and infrastructure Punjab Land Development Company 49% Ownership Finance Home Construction Mortgage Company Profits

20. A Typical Development Land size 120 acres Housing units 3,000 Project Duration 3 years* Government of Punjab investment PKR 100M Private Investment PKR 100M Mortgage Lending Institution PKR 720M Financial Return 15% Lives Directly Impacted 20,000 *From the time of land purchase and approvals

21. Way Forward… Create a corporate structure that provides: –Transparent regulatory framework – An acceptable platform for private sector investors

22. Private Sector Requirements Corporate structure required Minimal government involvement in operations Well defined regulatory framework Clearly identified roles and responsibilities

23. Establish the Vehicle –Formation of Punjab Land Development Company A for profit company registered under SECP Paid up capital of PKR 200 million by the Government of Punjab –Execute detailed study –Finance first project Appointment of Board –First low cost housing project inauguration – 100 days from release of funds

24. Punjab Land Development Company (PLDC) –Approval of Board and Management Khalid Rafique (Chairman/CEO)Nadeem Babar Shaukat EllahiChairman PIEDMC Ibrahim QureshiAmjad Riaz (ACE) Dr. Tahir MasoodPervaiz Qureshi (Unicon) Alman AslamZafarudin Mehmood Balighur Rehman MNAKh. Imran Nazir MPA Secretary HUDDSecretary Finance SMBR

25. PLDC shall … –Create a regulatory framework for each development –Devise mechanisms for partnerships and JVs with 3 rd parties –Follow strategic planning for scaled development –Formulate standards for agreements with developers –Define a monitoring and supervisory system –Put in place a community management program and ensure its sustainability

26. Thank you