The Real Estate Dilemma: Overcoming patwari Culture in Pakistan

This article was last updated on April 16, 2022

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Pakistan’s property industry is at the preliminary stages of reaching its zenith in profitable investments and providing value-added realty sites, making now a good time to invest in this blooming economic sector.

While it is fairly easy to own property in Pakistan for both residents and non-residents, the processes leading to the execution of a real estate transaction are, however, gritty and more often than seldom, tiresome.

A common problem in the country’s realty industry is illegal acquisition of land, overly extended litigation periods and lack of formal documentation. These shortcomings may well be attributed to the flimsy effectuation of land reforms from 1970s.

The previous thwarted growth of the real estate sector of Pakistan could be attributed to a legacy of the British Raj — the long standing and exceedingly popular patwari culture in controlling land records and accounts. Although the system was officially abandoned with government’s introduction of the Land Record Management Information System (LRMIS) in March, 2007, the patwaris still manage to hold sway in some regions.

A patwari is the local name for an administrative government officer responsible for maintaining records of crop harvest and agricultural revenue, land rights and inheritance, transactions including buying, selling and transferring of land under his area of jurisdiction i.e. the tehsil level.

Exploiting low literacy rates in the sub-urban and rural vicinities in the majority of the country, the patwaris often served their own interests by offering undue favors to tenants and land owners. Unjust favors offered by patwaris included facilitating the acquisition of land illegally to help the interest of some parties, while marginalizing that of others. As a consequence, the property sector of Pakistan is plagued by endless disputes over land ownership and stakeholders end up consulting the judiciary, sometimes spending decades awaiting a decision.

It’s because the judicial processes are frequently marred by stay orders at every step, ownership of informal and uncategorized documentation and delayed verdicts. Thus, the real estate activity is further bogged down by a treacherously slow justice system depended upon to decide rightful ownership.

With the introduction of LRMIS, the government has officially alleviated the prevalent patwari culture with an aim to benefit the entire community of landowners, especially those from relatively marginalized rural regions where livelihoods mostly depend on land and agriculture.

According to some, the patwaris still manage to exist and enjoy the same clout in under-developed regions of the country, however, progress is surely being made through a computerized system of land listings and recordings. The process may seem slow, but it is continuous with great hope of betterment.

Expected to hit maximum velocity soon, the automated, neutral and efficient land recording LRMIS project is paving way for fewer ambiguities in real estate industry. Recently, the government of Pakistan listed eight districts in the Sindh province where the project would extend its services and facilitate obtainment of computerized land records very soon. This steady growth is being further catalyzed by the growing trend of employing Information Technology for various entrepreneurial ventures across the country.

Pakistan’s top property e-portal – Zameen.com – has greatly fueled this rising efficiency in the country’s property business. By providing a common platform to buyers, tenants and sellers online, it is facilitating clearer transactions and expeditious real estate activities. Entrepreneurs and investors from around the world are now participating in the country’s developing property landscape more actively than ever before.

Land, once completely restricted to agricultural revenue, has now become much greater an asset in the wake of a rapidly developing real estate sector, numerous modern housing schemes, commercial endeavors and industrial progress.

The systemized culture of property transactions has undoubtedly set new standards of accountability and land ownership in the country, creating a higher level of transparency in the realty business.

As transparency and accountability become much more of a norm than a dream, the realty sector is sure to continue its climb up the credibility, stability and profitability scales.