It has been brought to the notice of Punjab Chief Minister Shahbaz Sharif that more than 280,000 acres of government land, with an estimated value in excess of 50 billion rupees, has been grabbed by the land mafia during the last eight years.
There is little doubt that the political opponents of the PML (N) can quite easily come up with comparable figures for not only the time when Nawaz Sharif was the Chief Minister of Punjab but also when he was the Prime Minister of the country.
Similar data can be provided for the time when PPP had formed the government in the Centre and the province of Sindh. While a historical perspective is extremely relevant to be able to ascertain the possibility of success of any drive, backed by adequate commitment, yet there is general agreement in the country that the years in exile may have allowed some political leaders to learn valuable lessons.
Shahbaz Sharif is said to be just such a leader and has begun working for the poor people of his province. The Punjab budget as well as kutcheries that he holds amply reflect an approach which is aimed at addressing the twin elements critical to ensure that the poor get their due share: food at affordable prices through the issuance of food stamps as well as justice.
This gives one hope that all those who constitute land mafia are dealt with sternly and fairly. It is unfortunate that the land mafia is not only operating in the case of government land but also private land in urban centers. And to compound the problem, land title remains a major issue in our cities, towns and villages.
The patwari system has been known to provide the necessary documentation in some instances but these are rare. The more common problem relates to the patwari wanting payment before he entertains any request for documents and that is a serious handicap to the ability of the poor.
The land mafia may also provide paperwork that would not pass muster but which is accepted by an unscrupulous patwari upon payment of a bribe. And last but not least the poor in our rural areas do not have a clear title to their land and are, therefore, forced to go to moneylenders who charge an exorbitant rate of interest instead of being able to go to a bank where they will be charged a reasonable rate of return.
Hernando de Soto, a well known economist, emphasised that an important characteristic of the capitalist market economy is the state protection of property rights in a formal property system where ownership and transactions are clearly recorded.
These property rights and the whole formal system of property make possible (i) greater independence for individuals from local community arrangements to protect their assets; (ii) clear, provable, and protectable ownership; (iii) the standardisation and integration of property rules and property information in the country as a whole; (iv) increased trust arising from a greater certainty of punishment for cheating in economic transactions; (v) more formal and complex written statements of ownership that permit the easier assumption of shared risk and ownership in companies, and insurance against risk; (vi) greater availability of loans for new projects, since more things could be used as collateral for the loans; and (vii) increased fungibility, standardisation and transferability of statements documenting the ownership of property, which paves the way for structures such as national markets for companies and the easy transportation of property through complex networks of individuals and other entities.
There have been a number of interventions by the international financial institutions in the Punjab where computerisation of land records was considered to be the solution. This may not provide the complete solution given that computers in this country crash quite frequently with the loss of valuable data that invariably seems to benefit the unscrupulous elements.
What is significant is that there are pockets within the country where land title is clear, provable and protectable. These are mainly in defence areas as well as in Islamabad where the CDA holds sway. Thus there needs to be greater focus on ensuring that our title to land remains an inviolable right to land that must be respected.
Stock market's regulatory body, Securities and Exchange Commission of Pakistan, is in the process of implementing Real Estate Investment Trust (REIT) regulatory framework that will allow real estate investment trusts from overseas funds. REITs, when established, will allow full foreign ownership, free movement of capital and unrestricted repatriation of profits.
It is expected to curb speculation in Pakistani real estate markets and give access to small investors diversifying into real estate as well. There was no further information on the website of SECP after 2007 and one assumes the process of establishing six REITs is still ongoing.