ISLAMABAD: The Planning Commission’s research think tank the Pakistan Institute of Development Economics (PIDE) has recommended to the government to undertake key fundamental changes in real estate and energy sectors, including doing away with the mechanism of fixing DC rates of properties. The PIDE recommended that the government should have buy-back provisions if the real estate plots were sold by declaring less than the market price. The PIDE recommends fixing POL prices on weekly basis keeping in view prices in the international market.
The PIDE, in its Reform Agenda prepared by commission, stated that there is a need to encourage real estate agent associations in various cities and regions on a self-policing and licensing system.
The agent association’s responsibilities and codes should be developed by these organizations. There is a need to abolish development by housing societies and cooperatives. Developing and building should be a business of bonded licensed builders. It seeks to develop a system of open transparent electronic titles to property, no paperwork, go for automation and digitization. There is need to do away with stamp papers and transaction taxes. There is a need to abolish DC rates. Buyers and sellers should disclose the price. The government will enjoy the right to buy on declared price (This will refrain buyers from declaring low prices).
Brokers’ groups should develop an online listing service. No sales without appearing on listing service. A property to be sold only after a ‘for sale’ sign remains on the property for at least a week. Settlement attorneys to handle transaction paperwork electronically to complete the sale in a week. Title agents to search and guarantee title, against a fixed fee. Amend rental laws to allow the rental investment industry to thrive. Impart training to judges on real estate matters
Supply electricity on pre-payment basis, use smart technology. A tariff determination based on the actual cost of service. Remove subsidies if any subsidy is allowed, ensure its timely and full payment is made. Lease the difficult retail areas to the private sector for a certain period – execute performance based management contracts.
Develop business model and list DISCOs/GENCOs in the stock exchange; sell 20 percent shares to employees and give them representation in the board. Develop integrated energy plan covering transmission, distribution, environment, and energy efficiency. Prepare competitive bidding document for all future contracts. Use wheeling charges based on marginal cost. Engage independent experts to evaluate Competitive Trading Bilateral Contract Market CTBCM.
There is a need to reduce government footprint in state-owned companies and in tariff determination in gas sector. There is need to outsource ‘retail’ management for controlling theft; install high-quality measurement devices to address the unaccounted-for gas (UFG) issue.
There is a need to place a business model for gas companies; profits from operational efficiency, single consumer tariff based on a cost-of-service and targeted subsidy where necessary. There is need to place a progressive and market-based exploration policy
— well-head prices based on demand and supply. There is need of spending a part of royalty and taxes on exploration. There is need of regular monitoring of high-value blocks, auction of non-performing concessions, revisit long-term LNG agreement to unlock some of the gas volumes and allow these to be purchased by other parties on short-term contracts or in the spot market. There is need of convergence between the price of piped indigenous gas and RLNG.
There is a need to limit the role of government in pricing and allocation, ex-refinery prices based on international practice — regulator to set an upper limit based on the weighted average of the import prices of all OMCs, abolish IFEM, determine petroleum prices weekly linked to international oil prices weekly. There is a need to enhance oil trading and vessel chartering expertise of PSO. Outsource oil procurement based on performance contracts.
The government should determine petroleum pricing on a weekly basis linked to international prices. The ex-refinery prices should be determined based on international practice — OGRA may set an upper limit based on the weighted average of the import prices of all OMCs. Petroleum pricing on a cost of service basis; Abolish IFEM and 7.5 percent deemed duty on diesel should be abolished on an urgent basis as planned by the government.
