By Samia Khalid ISLAMABAD, Jan. 26 (INP-WealthPK): Pakistan is the most urbanised country in South Asia and approximately half of the country's population will be living in cities by 2025, according to the United Nations Population Division, with the cities generating 55% of the gross domestic product and having the potential to drive the nation’s economic growth. Urbanisation and economic growth are seen to be inextricably linked, especially in industrialised countries where they have frequently occurred simultaneously. Higher per capita income and better employment possibilities are associated with more urbanised locations. Moreover, technological innovation and economic prosperity are aided by urbanisation. But only effective public policies can reap the benefits of urbanisation. Hong Kong and Singapore in the 1980s and 1990s, as well as Dubai, Doha and Qatar in the 2000s, highlighted how urban planning and development drove economic growth. These cities developed a proactive, comprehensive, and well-resourced urban planning system that allowed them to promote economic growth and productivity. However, unplanned and mismanaged development gives rise to urban slums, environmental degradation, poverty and inequality. According to the latest figures, from the period 2010 to 2020, there has been a persistent increase in urbanisation in Pakistan. The graph below shows that urban regions are home to 37.17% of the population. Other estimates, based on a different definition of urban settlements, claim that the urban-rural population ratio might be as high as 40.5%. According to the United Nations Population Division, approximately half of the country's population will be living in cities by 2025. The 10 big cities account for 95% of the federal tax income with Karachi alone accounting for 12-15% of total GDP and 55% of the country's federal tax receipts. Moreover, seven out of 10 main cities in Pakistan have higher per capita earnings than the country as a whole, and urban poverty is typically lower (Source: UN Population Division).   Urbanisation and economic growth in Pakistan have been mutually linked. In line with the global trend, the metropolitan centres of Pakistan have also become engines of economic development. However, the rapid pace and scope of urbanisation pose issues, such as satisfying the rising demand for cheap housing, well-connected transportation systems and other infrastructure, as well as essential services and jobs. To tap the potential of increasing urbanisation to drive economic growth, the government has planned several initiatives. According to the Ministry of Planning, the Public Sector Development Programme (PSDP) 2020-21 allocated roughly Rs26 billion to several federal ministries and departments for the execution of physical planning of housing sector programmes and projects. Punjab has set aside Rs37.9 billion, Sindh Rs11.39 billion, Khyber Pakhtunkhwa Rs17.84 billion, Balochistan Rs6.21 billion and Azad Jammu and Kashmir Rs6.41 billion for the implementation of projects in the sector. In PSDP 2021-22, a total of Rs49 billion has been set aside for various ministries, divisions, and departments to conduct physical planning and housing sector programmes. This involves the development of urban contingency plans to minimise and adapt to crises, as well as restoration and recovery plans to deal with post-crisis scenarios. Pandemic legislation and crisis management rules will be included in urban contingency plans, as will recommendations for urban design retrofits and digital plans that leverage ubiquitous technology for geo-fencing and community involvement. In addition, for cities along the CPEC route, including Gwadar, preparation and development of Integrated Strategic Development Plans, as well as Smart City Master Plans, are being executed to encourage public-private partnerships for housing and new urban centres based on build-own-operate-transfer, according to Ministry of Planning. Under the Vision 2025, the government has given priority to job creation in metropolitan areas. With the establishment of special economic zones, the second phase of CPEC is projected to offer job possibilities. A stimulus package is created to help small and medium enterprises to add more value to their products and assist employment growth in the country. Only well-researched national strategies and plans can maximise the benefits that expanding urbanisation delivers. Financially independent municipal governments with control over income generation and utilisation are critical to economic growth.