THE Federal Constitutional Court’s ruling that land acquired for a specific purpose cannot later be converted into residential housing schemes could reshape Pakistan’s land-use policies. By affirming that land acquired for industrial purposes retains its public character even after transfer or sale, the court has reinforced a principle ignored by governments pursuing short-term political gains. The verdict extends beyond the dispute over land acquired for a paper and board mill in Peshawar. Across Pakistan, land originally acquired for factories has gradually been converted into speculative real estate, weakening both industrial capacity and credibility of land-use regulations. At the same time, the ruling exposes a policy dilemma. Many factories set up decades ago on the outskirts of cities are now surrounded by dense residential areas. Urbanisation has brought homes close to factories handling chemicals, heavy machinery and other polluting activities, creating risks to public health through air, water and noise pollution and complicating future urban planning decisions. In such cases, industries that have become environmentally incompatible with surrounding residential areas should be relocated to industrial parks equipped with proper infrastructure and waste treatment facilities.

Such relocation would improve environmental quality, enhance industrial competitiveness and ensure that industrial development is not carried out in a haphazard manner. In exchange, the old factories should be designated green areas to provide oxygen to nearby settlements. The verdict should also prompt governments to rethink broader land-use policies. Industrial expansion must occur within organised industrial estates, while zoning laws should be enforced strictly. Urban and environmental planning cannot be held hostage to speculative real estate profits. Equally urgent is the need to halt the conversion of fertile farmland around cities into housing societies. We are already grappling with food insecurity, shrinking cultivable land and mounting climate pressures. Allowing prime farmland to disappear beneath concrete further weakens the food system and destroys natural ecosystems. Agricultural land should, therefore, be acquired for real estate only in exceptional circumstances and after rigorous scrutiny. Where such conversion is permitted, developers should legally be required to reserve at least 30-40pc of the space for parks, tree cover and other green infrastructure. In short, the ruling should spur sustainable planning through stricter zoning, planned industrial estates, farmland protection and expanded green spaces to build climate-resilient cities.

Published in Dawn, July 10th, 2026