Problems of squatter settlements are becoming very serious day by day in Pakistan. Pakistan is poor developing country in the world which is facing different serious issues due to the lack of resources and lack of good governance, also economy of Pakistan is not good. Pakistan can not bear more Burden as issues in these situations. All problems regarding the Urban Sprawl of Islamabad are due to lack of proper management, non-implementation of policies, corruption and un awareness of Government towards the problems of squatter settlements.Government seems to fail to solve the problems of squatter settlements. This is big violation with the rights of slum dwellers. It is responsibility of the state to provide the basic rights to every citizen in a country.