Property rights refer to the right to possess resources and determine their utilisation. It defines the owners’ right to consume, use, sell, barter, or gift, an asset. Secure property rights in a country have enormous benefits. It incentivises people to invest in accumulating assets, whether plots of land or ideas.
As these rights are tradable, they can be marketed and efficiently allocated within the economy. For example, a piece of land with secure property rights can be used for economic activity and generate growth.
Eventually, secured property rights incentivise innovation in a country. Unfortunately, Pakistan’s legal and administrative property rights system is deficient and overburdened by an inefficient judiciary.
Due to the lack of an effective legal or administrative procedure, parallel and informal governance systems like Panchayat and Jirga have roots.
They are used to transfer property in rural areas of Pakistan. This has also led to the overflowing of the country’s courts with land dispute cases, causing losses worth millions of dollars.
Overseeing property rights in a pluralistic legal environment has severely impeded property rights in Pakistan. Considering the state of property rights in Pakistan, a regulated, stable and secure real estate sector is mandatory. The real estate sector can then act as an engine of economic growth.
Recently, the passing of the Real Estate Regulatory Authority (RERA) Act 2020 aims to bring transparency and accountability to make real estate transactions simple, promote economic, social, and civic development, and help bring international best practices to the Pakistani real estate market.
With the establishment of the RERA Act, the pluralistic legal systems that dominate land administration, the creation of cartels in the real estate sector, and the lack of standardisation of practices can be dealt with efficiently.
Leave a Reply