PM talks about state owned land as dead capital - i propose solution

[313ghazi]

Prime Minister Imran Khan referred to government-owned land as ‘dead capital’ in a tweet on Monday, suggesting land used for government residences and other state buildings could be used to generate income instead of resorting to foreign aid.

PM Imran claimed that just the urban portion of this land is worth Rs300 billion while Pakistan’s daily interest payment amounts to Rs5 billion.

https://twitter.com/x/status/1039049394543316992

https://twitter.com/x/status/1039051900329623552

https://tribune.com.pk/story/1799612/1-pm-imran-suggests-income-generation-dead-capital-govt-land/

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I think a good way of using this land to release capital would be by using it for social housing or for state owned farms. I don't think it should be sold.

Pakistan is at a critical economic juncture, if CPEC works out, our next generation will have less poverty, a massive middle class and potentially a lot of disposable income. If that income is spent on generating more wealth within Pakistan, our grandchildren could live in a country with first world conditions and lifestyles.

Unfortunately in a lot of developing economies, as soon as there is wealth it is wasted in the property market. House prices in some parts of Pakistan are as expensive as the UK, US and anywhere else in the world. A large percentage of household income is spent on rent or mortgage repayments for 20-30 years of an adults prime earning years.

This urban land owned by the state should be held onto until we can afford to built a mix of cheap affordable housing (for people to buy) and social housing (to be rented at a very cheap rate). Build more homes than we need, don't let the property market boom, the property market is the real dead money. Bricks and labour do not cost that much more now than they did 20 years ago, property speculation is what drives the prices up.

If our next generation can live in homes that are cheap to buy, they will have less debt and more disposable income which they will either invest in business or spend on products created in Pakistan.

As for the rural land. Immediately it should be turned into state owned farms. food should be grown and flooded into the market. we should drastically reduce the cost of food for the common man through over-supply. At the same time, we should setup agricultural business hubs to make sure independent farmers who grow crops to sell are not forced into poverty. Instead they should be facilitated so that a percentage of their crops can be exported, so our farmers are making wealth too.

 

[Samlee]

It Is Obvious That You Are An Economic Illiterate.Dead Capital Is An Economic Asset That Is Not Being Utilized To Earn Profits.


Where Did Khan Say Sell It????It Can Even Be Commercialized To Generate Income

 

[El Sidd]

Do it.

Nobody cares

 

[Fireurimagination]

Before selling land he should sell loss making enterprises first.

 

[Indus Pakistan]

Before selling land he should sell loss making enterprises first.

Agreed. I think PIA, Pak Steel and other loss making concerns need to be dumped. The problem is bloody politics. If this was K-Pk it would done. Dusted. But because the government is a coalition and a weak one at that if holy cows like PIA or PS are touched MQM will throw a tempter tantrum. What people don;t understand is Pakistan is running a welfare state but unlike Europe it is other way around. Concerns like PIA and PS are ways to dole out money to the middle class in Karachi. PM Imran Khan is asking for money from ex-pats but at the very time PIA is losing $ billions. If PIA, PS and electricty companies losses were agregated the sum would cover Bhasha Dam easy.

But a bit like Atif Mian and the Ahmedi situation these are not just hot potatos but nuke potatos. Touch them and you get dose of deadly radiation. It's like political suicide. They carry this sign on them.

 

[Kabira]

It Is Obvious That You Are An Economic Illiterate.Dead Capital Is An Economic Asset That Is Not Being Utilized To Earn Profits.


Where Did Khan Say Sell It????It Can Even Be Commercialized To Generate Income

But its not losing money either! Pakistan need to get rid of loss making entities. Selling land will not do much because federal government will be back to square one after few years but with no land this time.

 

[ranawat]

Prime Minister Imran Khan referred to government-owned land as ‘dead capital’ in a tweet on Monday, suggesting land used for government residences and other state buildings could be used to generate income instead of resorting to foreign aid.

PM Imran claimed that just the urban portion of this land is worth Rs300 billion while Pakistan’s daily interest payment amounts to Rs5 billion.

https://twitter.com/x/status/1039049394543316992

https://twitter.com/x/status/1039051900329623552

https://tribune.com.pk/story/1799612/1-pm-imran-suggests-income-generation-dead-capital-govt-land/

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The idea of considering this land as dead capital is utterly utterly foolish. You cannot grow new land, it is an asset which will appreciate in value, selling it is not the best use of it's, not is leaving it to "appreciate".

Pakistan is at a critical economic juncture, if CPEC works out, our next generation will have less poverty, a massive middle class and potentially a lot of disposable income. If that income is spent on generating more wealth within Pakistan, our grandchildren could live in a country with first world conditions and lifestyles.

Unfortunately in a lot of developing economies, as soon as there is wealth it is wasted in the property market. House prices in some parts of Pakistan are as expensive as the UK, US and anywhere else in the world. A large percentage of household income is spent on rent or mortgage repayments for 20-30 years of an adults prime earning years.

This urban land owned by the state should be held onto until we can afford to built a mix of cheap affordable housing (for people to buy) and social housing (to be rented at a very cheap rate). Build more homes than we need, don't let the property market boom, the property market is the real dead money. Bricks and labour do not cost that much more now than they did 20 years ago, property speculation is what drives the prices up.

If our next generation can live in homes that are cheap to buy, they will have less debt and more disposable income which they will either invest in business or spend on products created in Pakistan.

As for the rural land. Immediately it should be turned into state owned farms. food should be grown and flooded into the market. we should drastically reduce the cost of food for the common man through over-supply. At the same time, we should setup agricultural business hubs to make sure independent farmers who grow crops to sell are not forced into poverty. Instead they should be facilitated so that a percentage of their crops can be exported, so our farmers are making wealth too.

Where are economists and professors of economy in pakistan. Can't they teach him simple economic theory how states are run .

 

[Indus Pakistan]

Where are economists and professors of economy in pakistan. Can't they teach him simple economic theory how states are run .

What is wrong with selling the land. The state can make compulsory purchases if need be later. No point in having empty land that is fair play to land grabbers or for slum development.

 

[Hakikat ve Hikmet]

This is as per the Prophetic traditions!!! Remember, when a destitute person approached the Resulullah (PBUH) for help, he asked him what he possessed!!! The man replied, "A blanket"!! The Messenger's (PBUH) advice was to (i) sell the blanket, (ii) buy an axe, (iii) use that to cut woods, (iv) sell that wood in the market, and (v) thus earn livelihood via money generating economic activities according to one's present and available capabilities without begging to others!!!!! It's called dead assets to self employment!!! And, Islam is all about self employment via entrepreneurship, investments, trade, risks management, financial managements, paying taxes/wages etc., damn honest in dealings, hard in bargaining, documentation etc.!!! In essence, to be smart with money.....

Where are economists and professors of economy in pakistan. Can't they teach him simple economic theory how states are run .

Simple economic theories are the creation of the colonial imperialists....

What is wrong with selling the land. The state can make compulsory purchases if need be later. No point in having empty land that is fair play to land grabbers or for slum development.

Some folks want to take their wealth along with their dead bodies!!!! As for the Muslims, Kefen* has no pockets....

*Shroud to cover the dead body. Even the Christian folks don't put pockets in the best-cut suits put on the dead ones before burial...

 

[Indus Pakistan]

*Shroud to cover the dead body. Even the Christian folks don't put pockets in the best-cut suits put on the dead ones before burial...

Thanks Hakikat, I know what "kefan" is.

 

[Kabira]

Before selling land he should sell loss making enterprises first.

My guess is that large part of that land is occupied by slum dwellers, at least in urban areas. Not sure how government will handle it.

 

[313ghazi]

This dead capital can be put to use. State farms would generate produce and income. Affordable housing (not subsidised) is a long term investment. Short term it generates jobs, long term it frees up families to have more disposable income to put into the economy.

Selling land should be an absolute last resort.

 

[BHarwana]

Lol. So we are going to generate income from selling state assets and not economic policies? Bravo.

 

[RaGotimaar]

This is a good idea if implemented correctly. Government could sell land on leasehold basis which is long term and it can also lease out this land on short term basis after building shops and complexes on it. The Central Delhi municipal corporation does this .for an area of 40 sq KMS including all government offices parliament areas, it makes a whopping INR 1400 crores in profit. Not revenue, but profit.

Selling public land would be a blunder.

 

[UnitedPak]

Lol. So we are going to generate income from selling state assets and not economic policies? Bravo.

You must really enjoy making up things and then pretending to be outraged at your own made up things. Keep up the saltiness.

This idea is thinking out of the box and infinitely better than taking out more loans to pay for previous loans.