The Punjab Assembly Standing Committee has recommended approval of the Punjab Local Government Bill 2025.
The bill aimed to transfer political, administrative and financial powers to the lower levels. It will restore the Union Council system within the new local governments.
The bill proposed to declare Lahore district a fully urban area. Town corporations will be established in areas with populations exceeding 700,000.
The Union Council will comprise one or more census blocks. It has been granted authority to prepare and approve budgets and to collect taxes, fees and fines.
A provision has been included for the establishment of reconciliation committees at the Union Council level. Local government meetings will be mandatory every two months, with the commission authorised to take action if meetings are not held.
Local governments will be required to provide public information and may run projects under public-private partnerships.
Elected candidates may join political parties within 30 days of gazette notification. Citizens may appeal local taxes to the commission within 45 days, which will have the power to suspend unfair taxes.
The bill included formal provisions for establishing and registering Community Based Organisations (CBOs). These will receive 20 per cent contributions in development projects, with 80 per cent of funds supplied by the government. CBO funds must be kept in government banks.
The bill recommends making Deputy Commissioners members of all district authorities. Each district may prepare an economic development strategy.
CBOs are declared non-profit organisations, with assets used solely for organisational purposes. Profits or bonuses may not be distributed among members. Properties of CBOs will be held in the name of the Executive Committee, which may file court cases. Upon dissolution or de-registration, assets will transfer to local government. The leadership term of CBOs is fixed at one year, replacing the previous two-year term.
The commission has authority to hear and decide complaints concerning unfair local taxes.
The bill replaces ‘Lalamusa’ with ‘Lahore’ in the relevant clause; Lalamusa Academy remains under DG control. The term ‘ex-officio general members’ is added to schedules.
Responsibility for provision, management and maintenance of slaughterhouses lies with local government, which may outsource their operation under contracts of at least three years. Provincial regulations on slaughterhouses are mandatory.
Private markets may operate only with a licence; illegal markets face prohibition. Notices regarding licence issuance, suspension or cancellation must be posted in Urdu and the local language.
Local governments have the authority to prepare Land Use Plans. Land allocated for public use under site development schemes shall be transferred free of charge. Unauthorized buildings violating the site development scheme may be demolished without compensation.
If a project is not completed within the stipulated period, local government will take over completion. It may issue notices to clean, repair or demolish unhealthy or dangerous buildings.
Local government is responsible for cleaning roads, public places and garbage collection; dustbins will be provided. Garbage collected remains the property of the local government.
Provision of public toilets is mandatory; private latrines may be subject to inspection or prohibition of public use.
Local government is empowered to license and manage public ferries. Clean water supply is its responsibility, with mandatory control and permission for private water sources.
Local government may dig and restore public rivers, tanks and ponds. Roads, street lighting and street watering programmes will be implemented under local government authority.
The bill grants local government the power to change names of roads and public places.
The Punjab government plans to seek assembly approval of the bill on Monday. The Punjab Assembly Standing Committee has already approved it.
Approval represents a significant political test for the government. The Election Commission has directed elections under the old Local Government Act 2022. The provincial government intends to hold elections under the new Local Government Amendment Bill.
The bill’s approval may provoke a legal dispute between the Election Commission and the provincial government. The government seeks complete administrative control over local bodies through the new legislation.
