The population growth rate of Karachi is way beyond average national growth rate. Keeping aside the reasons for this extravagant growth, the phenomenon puts high demand on all aspects of civic life, and housing is no exception. The supply for housing for poor is not coming from formal sectors, which results in the creation of squatter settlements. Some of the theorists view these squatters as an indicator of poor’s desire for self improvement. The informality in Karachi is tacitly promoted by state institutions to value-tag land for future formal commercial enterprises. The resulting uncertainty is an impediment to the freedom of poor and hence human development. This paper documents and analyses the land use of Karachi, from the perspective of housing in an informal settlement, by taking Machar Colony as a case study. Literature review, stakeholders’ interviews, on-site observations and pictorial documentation are the prime characteristics of the research methodology. Keyword: Informality, housing, fear, freedom, commodification, Karachi, Machar Colony