The plan to computerize land records in Punjab is a step in the right direction; besides helping to boost tax collection, it may facilitate more commercial transactions of this real estate. But one thing the automation will not do is make Patwaris extinct. Although the processing may unlock some land value, it will also not spell a death blow to unclean land titles.
That said it may replace the typical dhoti-wielding middle man with a more tech-savvy, laptop wielding one. The culture of expropriation by Patwaris may eventually fade away as a consequence as well. The Punjab government with the aid of World Bank is already running a land record computerisation project in four districts of Punjab. It plans to complete the automation in the remaining 32 districts by 2014. Although the process can be expedited, its a good omen to have better documentation in the large grey area.
The process of unleashing land value should not stop here. The initiative should extend to developing more transparent ownership rights and land titles. At present, land prices are relatively much higher in those urban areas where property rights are well guarded. For instance a plot in DHA is priced higher than a more centralized location plot that falls in the ambit of city development authority.
In most of urban and rural areas, land ownership rights are vague and in many cases there are multiple claimants on each plot. That hinders commercial transactions and the transaction price is at discount to perceived value of the land.
In South American countries like Brazil, unlocking these land values by clear definition of ownership rights helped in generating liquidity and expedited commercial transactions. A similar step to be executed in Lahore and other urban centres of Punjab can generate many entrepreneurial ventures by boosting the confidence of buyers.
It follows that in Pakistan too, the computerisation of land records must be supplemented with clearer legislation regarding ownership titles and rights. With hefty mandates in the Federal and Punjab governments, the PML-N has a good opportunity to tackle long-standing issues regarding real estate ownership and the revenues the state collects from them.