Can land records use a Blockchain reset?

KARACHI:

Land ownership and management in Pakistan remain one of the most complex and contentious issues in governance. The system is plagued by fragmented record-keeping, widespread corruption, and outdated procedures, making the processes of buying, selling, and inheriting land bureaucratic and frustrating for millions. Legal inconsistencies and inefficiencies have stifled economic potential, while also fueling land disputes, criminal activities, and tax evasion.

Although efforts have been made to digitise and centralise land records – the slow pace of digitisation, limited to one province, continues to prevent the full utilisation of land resources, contributing to legal and financial instability. International models and technologies like blockchain can offer promising solutions. Blockchain’s secure, transparent system could transform land management by ensuring clear, immutable land titles, reducing corruption and fraudulent transactions. With proper reform and technological integration, Pakistan could build a more efficient, transparent, and equitable land management system, unlocking economic growth and social stability.

Deep-rooted challenges

Land management in Pakistan is deeply entrenched in colonial-era systems, where record-keeping was traditionally handled by the local patwari — a government land officer tasked with maintaining revenue records. This outdated system persists, especially in rural areas, where land records are maintained in registers that are highly vulnerable to tampering, loss, or destruction. The inefficiency of this system has led to overlapping claims, fraudulent transactions, and prolonged litigation. According to a Gallup Pakistan survey for the Board of Revenue, 42 per cent of landowners in Punjab expressed dissatisfaction with the current record-keeping system, and 82 per cent admitted to paying bribes to resolve land-related issues. These alarming statistics highlight the widespread distrust in land administration, with transparency and accountability remaining out of reach for most.

Urban areas, though seemingly more structured, are not immune to these inefficiencies. Major cities like Karachi, Lahore, and Islamabad have experienced unregulated real estate booms, often accompanied by the sale of land with disputed ownership or forged documentation. A lack of uniform valuation methods — ranging from collector rates to Federal Board of Revenue (FBR) rates, and open-market rates — has created significant disparities in property prices, paving the way for tax evasion and money laundering. The absence of a centralised database linking land records to actual market values further fuels the black-market elements within real estate transactions. Consequently, illegal land grabbing, encroachments, and property disputes have flourished, straining an already burdened judicial system. It is estimated that 50-75 per cent of court cases in Pakistan involve land-related conflicts, with cases often dragging on for decades.

Further compounding these challenges is the high level of land disputes in rural areas, where a lack of clarity in ownership has led to violent conflicts, disputes and widespread insecurity of land rights especially to vulnerable communities. According to estimates, more than 10 million acres of land in Pakistan remain in dispute, representing a substantial portion of the country's total agricultural land. This has severely hindered agricultural productivity and economic development, particularly in provinces like Sindh and Balochistan, where land disputes are most prevalent.

The lack of transparency and the continued reliance on archaic systems of land management have created a fertile ground for corruption and inefficiency. It is clear that meaningful reform is urgently needed to address these deep-rooted challenges and establish a more transparent, efficient, and secure land management system in Pakistan. Without such reforms, the country will continue to grapple with issues that not only undermine economic growth but also foster social unrest and instability.

The economic toll

The taxation system in Pakistan significantly exacerbates the land management crisis, leading to severe financial and economic consequences. Pakistan's tax-to-GDP ratio, which stood at just 10 per cent in 2022 and has dropped to approximately 8.7-9.2 per cent in 2024, remains far below the Asia-Pacific average of 19.3 per cent. This low tax-to-GDP ratio underscores the inefficiency of the country’s tax collection system and highlights a significant gap in revenue generation. A major contributor to this is the widespread undervaluation of properties, which results in substantial revenue losses. Taxes such as stamp duty (3-4 per cent), capital value tax (2 per cent), and advance income tax (3 per cent for filers, 7.5 per cent for non-filers) are calculated based on official rates, rather than actual market prices. This disparity is especially pronounced in major urban centers like Karachi, Lahore, and Islamabad, where the gap between the official "collector" rate and the real market value can range from five to ten times, creating ample room for tax evasion.

This undervaluation and the lack of alignment between official rates and market prices fuel an underground economy, where a significant portion of transactions take place in cash, outside the formal banking system. This financial opacity enables the real estate sector to function as a haven for black money, further destabilizing the country's economic framework. According to a study by the State Bank of Pakistan, the real estate sector in major urban centers accounts for nearly 70 per cent of undeclared assets, amplifying the issue of money laundering and corrupt practices.

The lack of transparency in land transactions hampers efficient tax collection, distorts investment patterns, and diverts funds away from productive economic activities into speculative land buying. This has led to an artificial inflation of property prices, making housing unaffordable for the average citizen and exacerbating socio-economic disparities. As property prices continue to rise beyond the reach of most people, social inequality deepens, leading to dissatisfaction and unrest. The distorted investment patterns in the real estate sector not only hinder long-term economic development but also perpetuate cycles of inequality, further damaging the country's economic stability and growth prospects.

Reform and digitisation efforts

Recognizing these inefficiencies, Pakistan has made attempts to modernise land records, particularly at the provincial level. Punjab’s Land Record Management Information System (LRMIS), launched in 2007, aimed to digitise rural land records, offering online issuance of land ownership documents (Fard), property registration, and record verification. Land record centers were established at sub-tehsil levels, with mobile and express services introduced for accessibility in remote areas. Similarly, Sindh’s Land Revenue Management Information System (SLRMIS), launched in 2014, sought to digitise land records in the province. While these initiatives have improved service delivery and reduced manual fraud to some extent, they remain fragmented, lacking nationwide integration.

Despite these digitisation efforts, issues persist. Many landowners, particularly in rural areas, remain unaware of digital record services or face bureaucratic obstacles in accessing them. The transition from manual to digital records has been slow, with many property records still requiring physical verification due to missing historical data. Additionally, corruption has not been entirely eliminated, as the loopholes within the land administration system remain, delaying the verification process or demanding bribes for expediting services.

Learning from best practices

Comparisons with global best practices reveal Pakistan’s shortcomings in land management. India, through its Digital India Land Records Modernisation Program (DILRMP), initiated in 2008, transitioned from manual to digital records, significantly reducing disputes and enhancing accessibility. As of 2024, nearly 98.5 per cent of rural land records in India have been digitised. The introduction of Unique Land Parcel Identification Numbers (ULPIN) and the National Generic Document Registration System (NGDRS) further streamlined property documentation, ensuring uniformity across states. India’s commitment to transparency has led to better revenue collection, greater investor confidence, and reduced litigation.

Similarly, Turkey revolutionised its land administration through the Land Registry and Cadastre Information System (TAKBIS), integrating digital registry records with an electronic property transfer system. The later introduction of the Land Registry Archive Information System (TARBIS) in 2010 further ensured the accessibility and security of historical land records. Moreover, Georgia’s blockchain-based land registry, implemented in 2016, has set an example of absolute transparency and fraud prevention. By storing land records on an immutable digital ledger, Georgia has effectively eliminated disputes arising from document manipulation. The National Agency of Public Registry (NAPR) now issues blockchain-verified digital certificates, providing citizens with real-time access to secure land ownership records.

How Blockchain can ensure transparency

Given these international successes, blockchain technology could provide the breakthrough Pakistan needs to address its land management crisis. Blockchain’s decentralised and immutable nature ensures that once data is recorded, it cannot be altered or deleted, eliminating the risk of fraudulent modifications. Transactions are validated through cryptographic protocols, significantly reducing the scope for human intervention and corruption. Smart contracts — self-executing agreements encoded on the blockchain — can further streamline land transactions, automatically transferring ownership upon meeting predefined conditions.

If implemented in Pakistan, blockchain technology could prevent document tampering, unauthorised land transfers, and duplicate ownership claims. The integration of a blockchain-based registry with the National Database and Registration Authority (NADRA) could further link land records with citizens’ digital identities, ensuring accountability and curbing illegal property transactions. Additionally, blockchain could facilitate efficient tax collection by accurately valuing properties based on real-time market rates, closing loopholes that allow underreporting and tax evasion.

The core of Georgia's system involves anchoring land title information to the Bitcoin blockchain. This means that key data points related to land ownership, transactions, and title history are cryptographically "hashed" and recorded onto the blockchain's immutable ledger. This process offers several key advantages:

Unprecedented Immutability and Tamper-Proof Security: Once land title information is recorded on the blockchain, it becomes virtually impossible to alter, delete, or fraudulently manipulate. The cryptographic security of blockchain ensures data integrity in a way traditional databases simply cannot match. This drastically reduces the risk of land fraud, backdating of records, and unauthorised alterations, building unshakeable confidence in the land registry.

Enhanced Transparency and Public Verifiability: While sensitive personal data is protected, the fact that land titles are anchored to a publicly auditable blockchain inherently increases transparency. Authorised parties can verify the existence and integrity of land titles on the blockchain, fostering greater trust and accountability in the system. This transparency helps deter corruption and makes the system more resistant to opaque or questionable practices.

Increased Efficiency and Streamlined Processes: While not the primary driver, blockchain can also contribute to efficiency gains in the long run. Automating certain processes through smart contracts and reducing the need for manual verification can streamline workflows and potentially lower administrative costs over time.

Lessons from Georgia

Georgia's blockchain land registry has been widely lauded as a success story, attracting international attention and serving as a model for other nations considering blockchain for governance applications. Key takeaways from Georgia's experience include:

Blockchain as a Viable Solution: Georgia definitively proved that blockchain is not just theoretical hype, but a practical and powerful tool for real-world land administration.

Focus on Security and Trust: Georgia's primary motivation was enhancing security and public trust, and blockchain demonstrably delivered on these goals.

Gradual and Phased Implementation: Georgia's approach involved a pilot phase followed by gradual expansion, allowing for refinement and adaptation along the way.

International Recognition and Inspiration: Georgia's success has inspired other countries to explore blockchain for land registries and other government services, showcasing its global impact.

Georgia's blockchain land registry is more than just a technological upgrade; it's a testament to the power of innovation to transform governance, build trust, and secure property rights in the digital age. For Pakistan, Georgia's experience provides a compelling and focused example of how blockchain can be a key to unlocking a more transparent, accurate, and trustworthy land record system, offering a clear path to overcoming the persistent "land record headache."

Despite its potential, adopting blockchain requires overcoming significant challenges. Political resistance, bureaucratic inertia, and a lack of technical expertise remain major hurdles. The digitisation of land records itself has faced opposition from vested interests who benefit from the opacity of the current system. Implementing blockchain would necessitate a strong political will, along with collaboration between federal and provincial governments, revenue departments, and private stakeholders.

 

The road to reform

To move forward, Pakistan needs a phased approach. First, the government must consolidate existing digitisation efforts, integrating provincial databases into a unified national platform - which the province of Punjab has been doing under the banner of Punjab Urban Land Systems Enhancement Project (PULSE). Which has its focus on improving the digitisation of land ownership records. Development of GIS-based cadastral mapping to visualise land boundaries accurately. Creation of a centralised database accessible to citizens and government agencies. And partitioning the land onto 1 parcel = 1 owner basis. And the idea is to eliminate reliance on manual records and reduce patwari influence. Provides tamper-proof records to curb corruption. And smplifies land inheritance processes by automating share transfers.

Second, legislation should be enacted to standardise land valuation methods and eliminate disparities between collector rates and market prices. Third, the transition to blockchain should begin as a case study in some mauzas to assess viability of the technology. Finally, public awareness campaigns should educate citizens about digital land records, ensuring widespread adoption and trust in the system.

The inefficiencies in Pakistan’s land management system have persisted for decades, stifling economic growth and legal transparency. However, with the right reforms and the adoption of cutting-edge technology – the ones which are happening or have happened in Punjab, the country has the potential to revolutionise its land administration. Learning from global examples and embracing blockchain’s transformative capabilities could not only streamline property transactions but also unlock billions in economic value, boosting investor confidence and strengthening tax revenues. The need for reform is urgent — Pakistan cannot afford to let its land management crisis continue unchecked.

Rizwan Maqsood is a researcher with experience in ground research and surveys

All facts and information are the sole responsibility of the author