Time to implement Land Reform Act of 1977

Time to implement Land Reform Act of 1977

                                                                                 Dated 17^th Jan 2012

By Tarique Khan Javed,

President, Overseas Pakistani Investors Forum

It is said that a compromise was struck between Quide e Azam and Land Lords that in return of their support for Pakistan, Pakistan government will under take not to carry any Land Reform nor change the status quo of Feudal Lords or tax the Agriculture sector. This was possible due to following background.

Unionist Party ideology of Loyalty with the British:

When the idea of Pakistan was being discussed, the Land Lords of Punjab favored continuation of British Rule. The Unionist Party to whom most belonged was based on this way of thinking. The Muslims of Punjab gained a lot when the Britishers crushed the Sikhs and ended their Rule. This was in 1862. Between 1880 and 1920 Britishers laid 9 major Canal systems in Punjab and turned deserts into highly productive agriculture land. To recoup the cost of these Canals they auctioned it to highest bidders but favored established agriculturists over Commoners. It was a State policy that in order to provide Labour to the farms the poor must continue to remain poor. Therefore the surplus land was given to Informers, Recruiters, EX Service man, Breeders of Horse, Camel and Donkey. 
The breeders on the promise of raising certain number of animals were able to get very large tracks of Land. After 1920s motorized vehicles started to arrive for transportation but the Lands to Breeders were not resumed and are still with them. They must be resumed immediately. 

Those who prospered during the British Rule very much favoured continuation of British Rule even after 1947. They ruled Punjab under Unionist Party on this Manifesto. 

Quide's limited choices and constrains:

Under above circumstances if Quide e Azam did not concede to these demand Pakistan would not have been created. However the Pakistan that he created was bound to remain economically crippled and unfair to the poor masses.

Upto 90 pc taxes in India were derived from Agriculture during the British Rule. Only other tax was that on Alcohol, Salt, Indigo, and road tax. To agree to give up 90 pc income was to make Pakistan fully dependent on Foreign Aid by acting as Slaves of the West. Thus upto 67pc Military budget came from USA till 1965. For civilian expenses and development budget also Aid, Grants, and World, IMF loans became a major source. Under these circumstances an Independent foreign policy became impossible and we were dragged into one Western war after the other. Bring Pakistan were we stand now.

Past Land Reforms:

For Pakistan to become strong the exemption granted to the Landed Class must to taken back. Real 
Land Reforms must be carried out and Agriculture Class must be taxed like others. 

In the past Ayub Khan and Bhutto dared introduce Land Reforms on a limited scale which benefitted only 250,000 families. Ayub' reform was more effective as it benefitted 186, 0000 families. 

Bhutto's so called Land Reform of 1972 only benefited 71,000 families. While out of the resumed land from both the Reforms 2.7 million acres land remain undistributed even after lapse of so much time.

In 1977 Bhutto attempted a Second reform aiming to reduce Land Ceiling to 100 acres. Land Reform Act of 1977 was passed but was never implemented. Bhutto was hanged and Act declared UN Islamic.

For survival of Pakistan as a sovereign state with an Independent Foreign policy it is a must that exemption on Taxes on Landed Class and hold on Land Reform must be lifted. To start with the Land Reform Bill of 1972 must be implemented. PPP has no excuse as both MQM and ANP favor such reforms and also favour Agriculture income.

To start with the Land Reform Act of 1977 must be implemented to reduce poverty in the Country. The Land so resumed and the existing 2.7 million acres available from previous two Reforms must be distributed among Landless peasants. I recommend that distribution at the rate of 2 acres per family of atleast 5 be done. This will help alleviate poverty in Rural Areas in a big. Smaller land holdings will also reduce the income and political power disparity as it exist now. This will also remove the distortion in Water distribution; another major source of poverty in Rural Areas.

Democracy discredited for not delivering:

In recent past the Government has come under severe strain and at time it looked immanent that Democracy would folded again. The major excuse for this was the lack  of delivery of reforms expected in a democratic set up compared to Dictatorship.

In the name of playing safe, all Economic policies of Musharraf era were continued. Except Benazir Fund no radical plans were introduced to relieve the suffering of the common man. Resource constrains and IMF conditions were often cited as excuses however this was not true. In fact it was the laziness and lack of Leadership which did not let the PPP led government to implement Land Reform Act of 1977, which would have been readily favoured by MQM and ANP. MQM has been trying to introduce a Land Reform Bill calling for maximum ceiling of 37 acres per person while ANP’s Manifesto calls for maximum ceiling of 50 acres per family.

They would have welcomed lowering of the ceiling to 100 acres under the Act of 1977 to be followed by further lowering of the limit as per their thinking. Some analyst believe that hold of Land Lords on PPP has become such that any move against their interest will be resisted strongly. Thus no action on this front.

Issue can not be ignored any longer:

World Bank and other professional body reports are adamant that without tackling the thorny issue of  unfair  Land of Water distribution poverty in Rural areas can not be reduced. Running away from this vital source of poverty in the Country will not help. Without resolving this issue the core cause of terrorism in Pakistan can not eliminated. The recruiting ground for terrorists in the Country is poor Rural areas. Therefore reducing income disparity and poverty in the Rural Areas is the most important item on the National Agenda.

Future elections  results in Rural Areas will depend on which party takes what stand on the issue of Land reform. MQM in its last big Rally at Multan promised Land Reforms and gained instant attention, as this is what the masses wish to hear.

PPP in its own interest should take the initiative and implement 1977 Act and pay back the debt of gratitude its members have towards  Z.A. Bhutto their beloved Leader who got this Act passed from the Parliament. Some analysts believe he was hanged for introducing second Land Reform within span of five years. The Land Lords got together and used Islam and the Army to get rid of him and put on hold the process upto now. If democracy is to strengthen popular reforms like above must be introduced. This will enlist the support of Common man in Democracy and weaken the power of Landed Class.

Huge income source:

Once the power of Landed Class is weakened they be taxed also like rest of the Citizen and their privileged position compromised.

If reasonable Land rent is changed. This can become the biggest source of income for the Country. The current rates may be reformed upwards to near Mogul and British era. From the new recipients Land this would be an easy process and Government can fix the rate as it wishes. If someone does not like it, they may refuse to take the Land, as was common in the British era. When the Britishers captured Madras and Bobmay they introduced  Ryatwari System  to get rid of the middle man in the form of Zamindars.  Under this system DC used to directly deal with upto 150,000 Ryat or peasant  and negotiate the rate directly without any intermediary like the Zamindar, as was applicable in Bengal and Bihar.

I recommend Ryatwari system for Pakistan.

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