Land Reforms in Pakistan: Boosting Agriculture & Poverty

Land reforms have played a pivotal role in shaping economic trajectories across developing nations, and Pakistan is no exception. As one of the most critical productive resources, land is deeply tied to the livelihoods of rural populations, with agriculture accounting for 22.7% of Pakistan’s GDP and employing 37.4% of the labor force (Pakistan Economic Survey 2022–23). Yet, decades of skewed landownership patterns have entrenched inequalities, restricted smallholder productivity, and fueled social tensions.

Since the 1950s, Pakistan has embarked on several waves of land reform to address these issues, aiming to redistribute surplus holdings, dismantle feudal structures, and boost agricultural yields. The first major attempt came in the 1959–1960 Land Reform Ordinance, which imposed acreage ceilings and sought to transfer excess land to tenants. However, loopholes in the legislation, such as allowing landlords to divide estates among family members, meant that only about 5% of land changed hands. Subsequent reforms in the 1970s under Prime Minister Zulfikar Ali Bhutto raised ceiling limits and attempted to consolidate small farms, yet elite resistance and protracted legal battles once again blunted the intended impact.

By the 1980s and 1990s, further adjustments, like revising ceiling laws and expanding tenancy rights, sought to strengthen the rights of sharecroppers and smallholders. Despite these efforts, weak implementation mechanisms, inadequate agricultural extension services, and limited access to credit undermined potential gains in productivity. In regions like Punjab and Sindh, the presence of large landlords continued to influence local politics, often blocking effective enforcement of land reform measures. Consequently, landlessness and underemployment persisted in many rural pockets, curbing the growth of rural incomes and perpetuating poverty cycles.

Nonetheless, pockets of success have emerged. Where redistributed plots were coupled with improved access to irrigation, credit, and market linkages, smallholders have demonstrated significant yield improvements, sometimes up to 20% higher than before the reform. Additionally, land reforms have contributed to a modest reduction in rural inequality, as Gini coefficients for land distribution in some districts fell by 3-5 percentage points following reform implementation. Political stability has also seen incremental gains: despite lingering frustrations, regions with clearer landownership records and legally protected tenancy agreements have experienced fewer rural uprisings and more participatory local governance.

However, the overarching challenge remains without comprehensive, well-resourced support systems, such as credit facilities, modern agronomic training, and rural infrastructure, land reforms alone cannot unlock the full agricultural potential of Pakistan’s smallholders. For land redistribution to catalyze broader economic transformation, policy makers must ensure that legal changes are reinforced by on-the-ground investments in irrigation, mechanization, and rural extension services. Only then can equitable land access translate into sustained productivity gains, poverty reduction, and long-term political stability across Pakistan’s agrarian landscape.

Objectives of Land Reforms in Pakistan

Land reforms in Pakistan have been driven by multifaceted objectives aimed at transforming the agrarian economy, reducing poverty, promoting social justice, and fostering political stability. One central goal has been to dismantle entrenched feudal structures and enhance economic efficiency and growth. Historically, large landowners, known as zamindars, controlled vast estates, while small farmers toiled as tenants under exploitative conditions. The 1959 Land Reforms under Ayub Khan and the more extensive 1972 reforms under Zulfikar Ali Bhutto imposed ceilings on landholdings, initially 500 acres, later reduced to 150 acres for irrigated land, to transfer surplus land to landless peasants (Khan, 2004). Although loopholes such as benami transfers (holding land in proxy names) allowed many zamindars to retain de facto control, redistributed plots nonetheless demonstrated higher per-acre productivity as smallholders invested intensive labor, adopted improved crop management, and applied traditional knowledge more effectively than absentee landlords (Hussain, 2018). Secure land tenure became recognized as crucial for incentivizing farmers to invest in irrigation systems, high-yield seed varieties, and mechanization, factors essential for modernizing Pakistan’s agricultural sector.

A second objective has been poverty alleviation. Rural poverty remains pervasive: 39.5% of rural households still fall below the poverty line (World Bank, 2021). By granting land to landless peasants, reforms sought to promote self-sufficiency and create stable income sources. Between 1959 and 1977, approximately 4.5 million acres were redistributed, benefiting a fraction of the rural poor and creating modest improvements in household welfare for those beneficiaries (Gazdar & Mallah, 2013). Access to land also enhances credit availability, as land can serve as collateral for loans. Yet only 27% of small farmers currently have formal credit access (State Bank of Pakistan, 2022), constraining their ability to acquire productivity-enhancing inputs such as fertilizers and tractors, and thereby limiting the broader impact of redistributive policies on poverty reduction.

Promoting social equity and justice constitutes a third objective. Land inequality remains stark: 5% of landowners control nearly 64% of agricultural land (Pakistan Bureau of Statistics, 2020). By aiming to redistribute land, reforms sought to empower marginalized groups, including women, who own less than 3% of agricultural land despite constituting a significant portion of farm labor (FAO, 2021). The 2019 Punjab Protection of Women’s Property Rights Act represented an important step toward securing women’s inheritance rights, yet cultural norms, legal ambiguities, and weak enforcement continue to undermine its effectiveness. Greater land access for women could strengthen their economic independence, reduce gender disparities, and improve household nutrition and education outcomes.

Finally, land reforms have aimed to foster political stability and reinforce democratic governance. Land inequality has historically fueled rural unrest, evident in movements such as the Haris Committee protests of 1949 and the Anjuman-e-Mazareen Punjab agitation in the early 2000s, both of which demanded tenant rights and equitable land distribution. In theory, successful land reforms would diffuse feudal power, broaden economic participation, and reduce social tensions. However, persistent political resistance from landed elites has often stalled reform implementation, as reflected in the 2018 agricultural census that revealed continued land concentration and limited disruption of feudal structures. Ensuring lasting political stability requires not only legislative changes but also robust enforcement mechanisms and sustained political will to overcome elite capture.

In summary, the objectives of land reforms in Pakistan, enhancing economic efficiency, alleviating poverty, promoting social justice, and ensuring political stability, underscore the complex interplay between agrarian structures and national development. While progress has been uneven, these goals remain central to policy debates as Pakistan seeks to transform its agricultural landscape and improve rural livelihoods.

Impact on Agricultural Productivity

Land reforms in Pakistan have the potential to significantly boost agricultural productivity by aligning landownership with those most motivated to cultivate. Data from IFPRI (2020) show that small farms, those under five acres, produce yields per acre that are approximately 30% higher than larger estates. This productivity premium arises from labor-intensive practices, careful land stewardship, and the ability of smallholders to closely monitor their crops. When a farmer holds secure title to even a modest plot, they are more likely to invest in soil improvements, experiment with high-yield seed varieties, and adopt better crop management techniques. However, one unintended consequence of redistributive policies has been land fragmentation: as plots are subdivided across generations, individual holdings may shrink to sizes that are not economically viable. Small parcels can limit the adoption of mechanization and reduce economies of scale, ultimately dampening the productivity gains that land redistribution initially sought to stimulate.

Complementary policies are essential for realizing the full productivity potential of land reforms. Subsidized fertilizers and improved irrigation infrastructure, such as lining canals, rehabilitating watercourses, and introducing drip irrigation in water-scarce areas, can raise yields substantially. For example, the Kisan Card Scheme (2023) aims to digitize subsidy delivery and streamline input procurement via a mobile-enabled card, but its impact is constrained by only 28% rural internet connectivity (PTA, 2023). Digital extension services, when effectively deployed, can bridge this gap by delivering customized agronomic advice directly to farmers’ mobile phones. Enhanced access to credits and crop insurance also encourages smallholders to invest confidently, knowing they can borrow for inputs without fear of exploitative interest rates. Without these complementary measures, land reforms alone often fail to translate into sustained productivity gains.

Land Reforms and Rural Development

Redistribution of land can catalyze wider rural development by injecting purchasing power into previously landless households. When new landowners purchase seeds, fertilizers, and basic machinery, local demand for agricultural inputs rises, generating business for seed vendors, agrochemical suppliers, and service providers. This surge in economic activity can spur the growth of agro-based industries, such as dairy processing, cold-storage facilities, and textile production, by creating reliable supply chains of raw materials. As farm incomes rise, families can afford better nutrition, send their children to school, and access primary healthcare services, creating a positive cycle of human capital development.

Despite these potential benefits, Pakistan’s rural growth remains stunted by inadequate infrastructure, poor market access, and acute climate vulnerabilities. Unpaved roads mean that even productive harvests may perish before reaching markets, and insufficient storage facilities lead to high post-harvest losses. In regions prone to floods or droughts, smallholders typically lack resources to implement climate adaptation measures. Consequently, to truly electrify rural economies, land reforms must be part of integrated policy packages that invest in rural roads, market linkages, and climate-resilient infrastructure such as flood embankments and rainwater harvesting systems.

Challenges in Implementation

Elite resistance poses the most formidable obstacle to effective land reform. Powerful landowners often exploit legal loopholes, such as benami transfers and complex inheritance regulations, to retain control over surplus holdings. Their political influence further hampers genuine redistribution, as they can sway bureaucratic decisions and delay land title registrations. A weak institutional framework exacerbates these issues: only 67% of land records are digitized as of 2023, leaving significant portions of rural Pakistan reliant on outdated paper records that are prone to forgery and mismanagement. Without transparent and accessible land registries, it is difficult to enforce redistribution mandates or resolve disputes.

A third challenge is the absence of necessary complementary reforms. Even when land is redistributed, beneficiaries frequently lack access to affordable credit, extension services, and rural infrastructure, undermining the productivity and development goals of the reforms. Finally, persistent gender disparities further weaken impact: while women legally have inheritance rights, social norms and family pressures often prevent them from taking up land titles. As a result, female farmers, who comprise 70% of rural agricultural labor, miss out on the benefits of land ownership, perpetuating cycles of poverty and underdevelopment. Addressing these intertwined challenges requires a comprehensive approach that combines legal reform, institutional capacity building, and targeted investments in rural communities.

Conclusion

In Pakistan, land reforms have sought to dismantle feudal structures and equip smallholders with secure tenure, aiming to boost agricultural productivity and alleviate rural poverty. While initial policies in the 1950s and 1970s imposed acreage ceilings, loopholes and elite resistance limited genuine redistribution. Subsequent adjustments strengthened tenancy rights but still fell short due to weak implementation, inadequate extension services, and restricted access to credit. Consequently, landlessness and underemployment persisted, keeping many rural households mired in poverty.

Where land was successfully redistributed, accompanied by improved irrigation, subsidized inputs, and better market linkages, smallholders achieved yield increases of up to 20% and Gini coefficients for land distribution decreased by several percentage points. These pockets of progress also saw more participatory local governance and fewer rural uprisings. Yet, systemic challenges remain only two-thirds of land records are digitized, elite capture continues to distort resource allocation, and just over a quarter of small farmers can access formal credit. Gender disparities further weaken outcomes, as women still hold under 3% of land despite constituting most of the agricultural labor.

For land reforms to catalyze broad-based economic transformation, they must be paired with investments in rural infrastructure, irrigation networks, farm roads, and digital extension platforms, as well as targeted credit and insurance schemes. By reinforcing legal changes with on-the-ground support systems, policymakers can ensure equitable land access translates into sustained productivity gains, poverty reduction, and long-term political stability across Pakistan’s agrarian landscape.

References: FAO; Gazdar & Mallah; Hussain; Pakistan Economic Survey; World Bank; Khan; State Bank of Pakistan; Pakistan Bureau of Statistics; IFPRI; PTA

Please note that the views expressed in this article are of the author and do not necessarily reflect the views or policies of any organization.

The writer is affiliated with the Institute of Agricultural and Resource Economics, University of Agriculture, Faisalabad, Pakistan.

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