Time to implement Land Reform Act 1977.
By: Tarique Khan Javed
President, Overseas Pakistani Investors Forum.
                           Dated 30 Oct 2008

Pakistan an unjust society:
Unequal distribution of Land and Water is most important cause of poverty in the Country. Creation of Pakistan helped Land Lords and Jagirdars avoid the fate of their brothers in India, who lost their privileges soon after independence, as promised by Congress in its 1937 manifesto.

This lasted till 1959 when Ayub Khan introduced first Land reforms. This was followed by 1972 Land Reform by Shaheed Zulfikar Ali Bhutto. These reforms benefited some 250,000 people as detailed below:

Progress of implementation of land reforms up to June 1994(hectares):

Fate of Land Reform Act of 1977:
Not satisfied by 1972 results Shaheed Bhutto  introduced yet another reform in 1977 which called for: Landholdings: 100 acres irrigated, 200 acres unirrigated or 8,000 PIUs equivalent; compensation to landowners on resumed land at Rs 30 per PIU; redistribution as in 1972.

The Act was passed by parliament. However this proved to the last straw for the enemies of Bhutto and they resolved and succeeded in removing and later constitutionally murdering him. Dictator Zai ul Haq after taking a Fatwa against repossession and redistribution of Land as Un Islamic completely ignored the Act after July 1977.

In 2002 Prime Minister Jamali of Muslim League declared that the issue of land reforms was over in Pakistan and that the current holdings were optimum for productivity.

Other than 2.7 million Government land distribution which comes in for discussion from time to time, there is no talk of land reform in Pakistan since 2002. Even distribution of Government land is delayed on one pretext or the other while the millions of poor landless people keep pleading.

PPP’s obligation to the Poor:
PPP Government owes to the people of Pakistan and souls of their Leader an obligation to implement the 1977 Land Reform Act. In this they will find active support of MQM and ANP.

There can not be any better time for its implementation and there is no excuse what so ever for delay.  Except as the critic say, the Party is run by Land Lords, Jagirdars and Sardars and why they would agree to reduce their holdings and influence.  To prove critics wrong; rank and file of PPP should demand that the unfinished agenda of their Leader be implemented.

PPP has no excuse this time as Army is on the sideline and all important Offices are held by them. If they fail to do so this will be great betrayal of trust posed by the poor. Since the last Benezir Bhutto’s Government people have been waiting for the PPP government to come again and relief their suffering. If PPP fails this time the consequence for it as a party will be disastrous.

Optimum Economic land holding?
Given the large number of available landless peasants in the Country, who also constitute the bulk of poor in the Country, the question of how much each family should own becomes pertinent.

If land could be provided to these landless peasants they would come out of the poverty trap and contribute in a major way reduction in Poverty level in the Country.

The question arises as to what constitutes an optimum land holding, so the total production is not effected and at the same time social justice is provided.

Is the current applicable ceiling of 200 acres alright and there is no need to change it given the natural redistribution of land with the passing of land from one generation to another?

Some Economist urge that while Pakistanis have a Feudal mind set which is opposite of democratic mind set, its economy is no more Feudal rather it is Capitalist. Land holdings have become smaller with the passage of time as each large holding of the past got divided and sub divided among heirs, as per Islamic Law. Some Economist even worry that too small holdings might become economically unviable and retard over all production.

On the other hand some Economist believe that Feudal large land holding still exist and is the source of all Economic, Political and Social injustices in Pakistan and land reform is an urgent need.

They urge that to create a just society it is imperative that landless peasants are given land on an urgent basis. This, they believe will not only alleviate rural poverty but also increase the production of these lands.

While I have no doubt that morally and socially it is imperative that land less peasants of the Country be given land and this can only happen by repossessing large tracks of land from large land owners, I have concern over the productivity issue. Will these small holding be economically viable or not?

A land Plan for Pakistan on 20- 80 basis:
 In my opinion for Pakistan the optimum level of land ownership per family is 20 acres. A family comprising husband wife and three children can not till more than this. While the holding is large enough to provide surplus for sale in the market. The size is such that family can afford a tube well if needed and also own a tractor which may be shared with neighbours at a price.

The land may be allocated on the basis of NICs and B forms. The allot tees to sigh an undertaking that they will till the land and in case they leave for towns the land will be taken back. This is practice in China now where the lease is granted for 30 years on this condition of domicile.

20 acres per family given at a 30 years lease with all government taxes to be agreed before hand and not subject to change as was done in 1793 Permanent Settlement for Bengal provides the best set up for optimum production, social justice and political stability. This will alleviate poverty in Rural Areas in a major way.

In Urban Areas also based on NIC and B form each land less family may be provided a 80 sq.yard land, at small upfront payment and remaining payment over 20-30 years in quarterly installment. Almost all families will be able to afford such land and then gradually build their houses, value of which will rise with passage of time. This will alleviate poverty in Urban Areas, as the rent eats up a large chunk of poor family’s income and it does not give them ownership of property and thus they never come out of poverty trap.