Project objectives & its relationship with sector objectives

Government of the Punjab having reviewed the present functioning of Land Records in the Province and the difficulties faced by the general public in getting their land documents announced the project for Land Record Management Information System (LRMIS). The primary objectives of this project are:

• Transparent and efficient access of land records to the citizens
• Low transaction costs of obtaining Fard and other land records
• Increase the level of public confidence in the veracity of record of rights
  

The objectives of this pilot project are to setup modern kiosks at four (4) Kanungois in the district of Kasur to test the LRMIS software, data entry of land records, and business processes associated with the revenue administration. The LRMIS project can be related to the following sectoral objectives and the Vision 2020 of the Punjab Government

• Implement e-Governance policies and procedures.
• Use Information Technology to assist citizens in Punjab .
• Streamline business processes of the land records management system.
• Strengthen the institutional capacity of the revenue administration from Kanungoi level to the Board of Revenue (BOR).
• Increase public awareness of land rights.
• Set the foundation of a modern, accessible and conclusive land records management system.
• Monitor the quality and the efficiency of the services provided by the Board of Revenue (BOR).
  
  

Description and Justification of Project

Initially, the plan is to automate four (4) kanungois in two (2) different Tehsils of district Kasur as a pilot project. All key components of LRMIS and business processes will be tested in Kasur before rolling it out to the entire Province. The key components include LRMIS software, hardware, networking, data entry, construction of kiosks, and business processes associated with land revenue administration.

Software solutions from four different vendors will be implemented in the four (4) Kanungois at Kasur. The idea is to try various software solutions in the pilot district, evaluate each solution, and then select the software solution that is best suited for the entire Province of Punjab. In addition, testing of various solutions and selecting the best solution would allow the Government of the Punjab to procure a robust software solution and save data entry costs for the overall LRMIS project.

Currently, the land record management in Punjab is obsolete and too cumbersome for the citizens. Due to poor land record management and lack of automation, local as well as foreign investors have been reluctant to invest in rural areas of the Punjab province. In addition, both local and foreign financial institutions have been unwilling to finance industries and businesses that involve rural land.

Therefore, this project would be immensely beneficial for the citizens of Punjab, local and foreign investors, and the overall economy of Pakistan.

COST OF THE PROJECT

• Rs. 3 Billion approximately.
  

Annual Operating Cost

Year wise operating cost of manpower, Miscellaneous and others are mentioned in “Capital Cost Estimate”.

Financial Plan

Source of Financing

1. Equity

• Punjab Government

2. Debt

• International Development Assistance (IDA) Credit from the World Bank subject to adherence to World Bank's credit and procurement guidelines.
• The Punjab Government will provide the seed money for the project pending retroactive financing from the World Bank.
  

3. Grants along with sources

• N/A
  

4. Weighted cost of capital

• Detailed cost sheet is attached at Annexure-A
  

Benefits of the project

• Financial Benefits
  
  1. Lower transaction costs.
  2. Reduction in informal costs of obtaining Fards and other land records.
  3. Increase in economic activity in the rural as well as urban areas.

Financial / Economic Benefits & Analysis of the project

• Economic Benefits
  
  1. Easy and reliable access to land records.
  2. Enhancement in value of the land because of reliable land records.
  3. Increase of public's confidence in the authenticity of land records.
  4. Capital and economic generation in rural areas due to the reliability of land records.
     The land owners can apply for loans and offer their land as collateral.
     
• Cost Benefits Analysis
  
  1. The LRMIS project is a top priority of the Punjab Government as it has been envisaged
     to provide relief to the common man.
  2. The benefits far outweigh the cost of the project as this would revolutionize the
     way land is sold and purchased in Punjab .
  3. Citizens of Punjab would be able to access their land records in an efficient and
     transparent manner .
  4. Informal costs of obtaining Fards and other land records would be significantly reduced .