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Business body says millions of acres idle, proposes commercial hubs, housing schemes
LAHORE:
Vast stretches of government-owned land lying unused for decades could become a major source of investment, employment and public revenue if brought into productive use through public-private partnerships (PPPs), business leaders said on Wednesday, urging the government to launch a comprehensive plan to unlock the economic value of dormant state assets.
The call came from the Pakistan Industrial and Traders Associations Front (PIAF), which said valuable land owned by various government departments, particularly Pakistan Railways, remains either unused or severely underutilised despite mounting fiscal pressures and the country’s growing need for investment. The business body argued that commercial development of these assets could generate sustainable income for the government without imposing additional taxes on businesses or consumers.
PIAF office bearers said millions of acres of public land across the country remain idle while more than 12,400 acres of Pakistan Railways’ land has also fallen under illegal occupation. The association said the situation highlights weak asset management and called for stronger oversight, transparent policies and strict legal action to recover encroached land.
“The government should immediately bring decades-old unused public land, worth trillions of rupees, into productive use through public-private partnerships. Such an initiative can increase national revenue, attract investment and create thousands of employment opportunities while converting inactive public assets into a permanent source of income for the economy,” they said.
Pakistan Railways has long acknowledged that commercial utilisation of its land is an important source of non-fare revenue. Over the years, successive governments have announced plans to lease railway land for commercial projects, logistics facilities and other developments. However, implementation has remained slow due to legal disputes, encroachments, administrative hurdles and delays in policy execution.
PIAF proposed that valuable urban land owned by Pakistan Railways and other government institutions should be developed into commercial centres, business districts, IT parks, logistics hubs, hotels, shopping malls and mixed-use projects. It also recommended introducing housing schemes for middle- and low-income groups on suitable sites, arguing that such developments could address both economic and urban planning challenges.
The association further suggested that revenue generated through these projects should be deposited into a dedicated national fund to help finance infrastructure projects, public welfare programmes and over time, contribute towards reducing the country’s external debt burden. They also called for the creation of a comprehensive digital inventory of all unused government land across federal and provincial institutions. It recommended conducting a complete audit of these assets before offering them to investors through transparent auctions or long-term lease agreements under the PPP model.
Economic experts say the proposal is consistent with international practices where governments monetise underutilised public assets without relinquishing ownership. Instead of outright sales, many countries lease land to private investors under long-term concession agreements, allowing governments to generate recurring income while encouraging private investment in commercial infrastructure.
Commenting on the proposal, urban real estate development expert Waseem Tariq Malik said effective land monetisation requires strong governance rather than simply offering land to investors. “Public-private partnerships can unlock significant economic value from idle government land, but transparency, competitive bidding and independent oversight are essential. Investors need policy certainty, while the public must be assured that national assets are being developed in a fair and accountable manner,” Malik said.
The proposal comes at a time when Pakistan is seeking to expand investment, strengthen public finances and improve infrastructure while maintaining fiscal discipline under ongoing economic reforms. Improving the management of state-owned assets could provide an additional revenue stream without increasing the tax burden, although success will depend on institutional reforms, legal clarity and transparent execution.