Land grabbing in Pakistan SCOPE www.scope.org.pk

Pakistan – some facts Got independence in 1947 Pakistan has an area encompassing 796,096 square KMs. Approximately 10.36% of the rural population is landless; 32.67 % owns land under 1 hectare; 0.046% owns between 1 and 2 hectare of land; 0.0309% owns 2-3 hectares of land; Only 0.0293% owns 5 or more hectares of land.

Agriculture in Pakistan Agriculture is backbone of Pakistan’s economy contributing 25% of GDP, employing 47% of labour force, contributing 49% to industrial Production and accounting for 67% of export earning.

Land reforms First land reforms in 1959, fixed ceiling of 200 hec. Of irrigates and 400 hec. Of non irrigated land 1972 second land reforms by Bhutto government, ceiling 5 hec. Irrigated and 20 hec. Of non irrigated 1977 ceiling was further adjusted as 4 acres irrigated and 8 hec. Non irrigated

Government The Government claims that Corporate Agriculture Farming will enhance efficiency of production. It has potential to inject much- needed investment into agriculture and rural areas to alleviated rural poverty

Efficiency It takes only five units of inputs to produce 100 units of produce through multi-cropped traditional organic methods, while it takes 300 units through chemical monoculture to produce the same 100 units of crops. How is that efficient?

Corporate Farming Ordinance The Corporate Farming Ordinance (CFO), under the military regime of General Pervaiz Musharaf was passed in 2001. Under the Ordinance, listed corporations can now lease land in Pakistan for a period of 99 years, broken into two periods of 50 and 49 years.

CAF ordinance TNCs can take lease of unlimited land with a minimum ceiling of 1500 acres. In addition, the TNCs have been promised 100% equity, numerous tax incentives as well as full repatriation of profits. Government has identified state lands which it would lease under the CFO.

Land hunger Oil rich states who have run out their own water resources are now eying land of poor countries Some UAE firms have acquired about 16,187 hectares of land in Pakistan’s Balochistan province for an estimated $40 million to produce food for their population back home

Disturbing news Possible purchase of about 12,140 hectares in Shikarpur, Larkana, Sukker, Thatta & Badin in Sindh is being negotiated. The UAE imports about 85 per cent of its food from abroad at an estimated cost of $2.9 billion.

Land shopping spree A Bahrain company, Market Access Promotion (MAP) Services Group, says it will develop ten model dairy and livestock farms in Pakistan during in 2008–10. A Qatari firm is reportedly eyeing the acquisition of Kollurkar farm in Punjab but Pakistan Farmers Forum says that the deal if inked may dislocate 25,000 villages.

Shopping spree The Saudi Fund for Development is creating a $566m special investment vehicle for buying land abroad for producing rice and wheat for the country. The first investment will be made in Sudan, to be followed in Turkey and Pakistan.

Land shopping spree The Al Rabie Group is interested in buying land in Pakistan to develop dairy industry there and also to develop exports of tomato paste, citrus pulp and packed beans for the Saudi market.

Land shopping spree In June, the UAE government was in bilateral talks with Islamabad for purchase of $400- 500m worth of farmland of 100,000–200,000 acres in large holdings in Punjab and Sindh provinces. Details are being finalized. But UAE investors want to purchase land directly in Pakistan and also want to get the lands exempted from any export restriction on the food produced there. Abraaj Capital acquired some 800,000 acres of “barren” farmland last year to produce rice and wheat for export to UAE.

Exporting food insecurity by seeking to solve their food shortage problem in this way, the rich emerging economies may succeed in producing enough quantity for their populations but may in the long-term be exporting their food insecurity to other nations.

Environment Environment is another concern as deep tube well technologies, pesticides and chemical fertilizers will further deteriorate the environment.