LAHORE, May 21: The Punjab government has drafted a law to improve governance of cooperative housing societies as well as to open up this sector to foreign investors by proposing to lease out land (to foreigners) for 99 years.

The draft law, entitled Punjab Cooperative Societies Act 2004, has been forwarded to the chief minister for his approval. The draft, that seeks to replace the existing Cooperatives Act, 1925, is expected to be presented before the Punjab Assembly some time this year for its approval and enactment.

The new law has been drafted by a committee constituted by the chief minister some nine months ago. The committee terms it to be a "unique and different from the existing law as it contains such emerging principles of cooperative governance as mergers, joint ventures, and share equity".

It has also developed linkages with International Cooperative Alliance, WTO and Safta principles and requirements of the Environment Impact Assessment (EIA) under the Pakistan Environmental Protection Act (PEPA) of 1997.

Leading corporate lawyer Anjum Jawaid Khan, a committee member, told Dawn on Thursday that the "proposed law would determine the course of future legislation (related to cooperative housing societies) in the country as it incorporates principles of corporate governance".

He said the new law would meet all requirements and demands of the WTO regime and explore possibilities for long leases by opening up this sector to foreign investment in Punjab that would push up the real estate value.

"Most of the other statuettes of Pakistan reveal that they are mostly verbatim reproductions of the laws copied from other countries," Mr Anjum said. The proposed law, he said, had comprehensively revised the Cooperative Societies Act 1925, adding that after its implementation it would attract foreign investment in the province.

The other committee members are secretary cooperatives Farkhanda Waseem, registrar cooperatives Khalid Pervaiz, secretary services Anwar Ahmad, Manzoor Ahmad of Valencia & Izmir Cooperative, All Punjab Cooperative Housing Societies secretary-general M A Farooqi, Noor Muhammad of the PCBL, joint registrar Munir Masood, Saqib Nisar, Nawazish and additional secretary cooperatives Daood.