BAKU, Azerbaijan, May 20. Resolving the housing crisis for low-income populations remains impossible without lowering the cost of capital and establishing a comprehensive financing system that incorporates sustainable financial instruments and housing affordability mechanisms, said Musadik Masood Malik, Pakistan’s Federal Minister for Climate Change and Environmental Coordination, Trend reports.
The minister made the remarks during a panel session titled "The Climate-Housing Nexus" held within the framework of the 13th session of the World Urban Forum (WUF13) in Baku.
He noted that when discussing housing construction, policymakers must account for the entire value and affordability chain; however, under the current system, this mechanism fails to function effectively for impoverished segments of the population. According to him, the primary bottleneck remains the cost of capital, which severely restricts opportunities for constructing affordable housing.
"When we speak about millions of people lacking adequate housing, we must evaluate the cost of capital from their perspective," he noted.
The minister also emphasized that even when funding is available, the lack of sustainable housing finance mechanisms for low-income groups persists, particularly in developing nations. He drew attention to the necessity of creating instruments analogous to mortgage and securitization models that would expand housing access.
Without such mechanisms, Malik concluded, the housing challenge cannot undergo systemic resolution.
Today marks the fourth day of WUF13 in Baku.
The first day included a ministerial meeting dedicated to the New Urban Agenda, a ministerial roundtable, assemblies for women and civil society, business sessions, and discussions on urban prosperity. An official ceremony marking the raising of the UN and Azerbaijani flags also took place.
The second day stood out for the inaugural Leaders' Summit, featuring high-level discussions on the global housing crisis, urbanization policy, and urban resilience. Concurrently, the opening of the Mexico City pavilion took place, serving as a significant platform for expanding cooperation with the Latin American region and preparing for WUF14.
The third day of WUF13 featured a comprehensive program of events covering the global housing crisis, the formation of safe and inclusive cities, climate resilience, artificial intelligence and urban governance, green urbanization, social equity, and sustainable transport.
WUF13, which has attracted more than 40,000 registered participants from 182 countries, will continue until May 22. Held under the theme “Housing the world: Safe and resilient cities and communities,” the forum brings together governments, international organizations, experts, and representatives of civil society to strengthen global cooperation in the field of sustainable urban development.
