Increasing revenue collection: KP govt to introduce new property lease rules

PESHAWAR: The Khyber Pakhtunkhwa government has drafted new property lease rules for increasing the revenue collection which would be laid before the provincial cabinet for approval.

According to a handout, Chief Minister Ali Amin Khan Gandapur on Thursday chaired a meeting of the Local Governments Department, which deliberated upon various reform initiatives and made decisions to this effect.

Minister for Local Governments Arshad Ayub Khan, Special Secretary to Chief Minister Waqar Ali Khan, administrative secretaries of the departments concerned and other relevant officials attended the meeting.

For utilizing Local Government properties more efficiently and judiciously, the meeting finalized the draft of KP Local Governments (Property Lease) Rules, 2024, which would be tabled before the next meeting of the provincial cabinet for final approval.

Briefing about the salient features of the newly drafted property lease rules, it was informed that the property lease period for large-scale investment has been proposed to extend up to 90 years.

The initial lease period for investment larger than Rs500 million, shall be 66 years which would be extendable to a further 33 years. Similarly, the Initial lease period for investment up to Rs500 million, shall be 33 years, extendable to the period of a further 33 years.

Investment plans up to Rs200 million would have an initial lease period of 33 years, which would also be extendable to a further 15 years.In case of the death of the leaseholder, the lease rights shall be transferable to the legal heirs for the remaining lease period.

The local government’s properties would be leased out through a lease committee to be chaired by the deputy commissioner of the respective district.The chief minister directed the quarters concerned to introduce an online leasing mechanism so that investors from abroad can also benefit from the opportunities easily.

“The ultimate purpose is to increase the revenue stream of the province by strengthening the prevailing system as well as facilitating the investors in potential sectors of the province,” he remarked. It was decided in the meeting to establish fruit and vegetable markets across the province under the auspices of Tehsil Municipal Administrations.

The main objective of establishing new fruit and vegetable markets is to optimally facilitate the people.The chief minister agreed to the proposed plan for the digital transformation of the Local Governments Department, under which the Integrated Citizen Services, Reporting, Compliance & Monitoring System would be established.