The World Bank (WB) is likely to approve a $40 million loan for 'Land Record Management and Information System Program (LRMIS-P)' in Punjab, it is learnt. Sources told Business Recorder here on Tuesday that establishment of this system would reduce litigation, establishing long-lasting tenure security thus creating an enabling investment environment.
According to the Bank, this system would lead to widespread use of reliable land registration procedures by farmers and other end-users in participating areas of Punjab.
The project has a total cost of $60 million. Out of this the Bank would provide $40 million from its International Development Association (IDA) funds, and the remaining amount would be arranged locally. The implementing agency of the project would be Punjab government.
Sources said that the existing status of land records makes land rights uncertain, impacting economic development negatively and threatening mainly the vulnerable and the poor whose rights remain virtually unprotected.
It is also observed that high transaction cost and difficulties associated with land registration system create problems for rural land owners (particularly the poor having small holdings), making them vulnerable to the predatory behaviour of middlemen.
According to sources, the project was designed with a view to make property rights more secure, as it would have a crucial role to play in urban development and economic growth as well as poverty reduction and vulnerability.
More clear and transparent land rights would have far-reaching implications for social peace and governance due to their potential impact on empowerment, local development and for acting as an important catalyst in stabilising communities and reducing social exclusion, they added.
The Bank said during its analysis that the main issues, which the province is facing regarding land ownership and revenue system, are cumbersome process and dependence on the Patwaris coupled with vulnerable practices resulting in a very weak and inefficient land records system where illegal annotations are possible, making room for exploitation and bribery.
Irresponsive and inaccessible revenue machinery also add to this inefficiency as a number of officials intervene in a single transaction and yet--or because of that--the backlog and delays are huge.
Patwari is supposed to visit villages rather frequently. Physical and economic limitations restrict this considerably. The Patwar Office buildings are generally non-existent and the average time span between Patwari's visits is two to three months. Additionally, by law, land records must travel with Patwaris and, therefore, no one has access to it for months.
Besides, the inaccuracy and complex nature of the current system exacerbates land-related disputes. Lack of credible information generates considerable delays in resolving pending cases in courts.
The outdated records and lack of updated geographical data coupled with engineered frauds are some of the root-causes of such insecurity. The expansion of the Patwari's jurisdiction due to increasing subdivision of holdings and population growth make the Revenue Record unmanageable.
The government of Punjab, to make land records accessible, reliable and efficient, aims at going beyond mere computerisation towards a more holistic approach which will include changing business processes, wherever required, and reducing or eliminating chances for legal challenges and malpractices.
Sources said that in rural areas two key features of government's strategy are learning by doing before scaling up (the Punjab Land Records Program includes a number of pilot initiatives to be closely monitored before a full scale exercise) and decentralising registration to make access to land records easier and more hassle-free.
In urban areas, the weaknesses in the registration of land rights is the result of fragmented responsibilities, little accountability and cumbersome processes. The Punjab government has also embarked on a number of actions aimed at improving the existing structure of property documentation, automation of the deed system and simplification and standardisation of mortgage documents.
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