RAWALPINDI, Dec 15: The Punjab government has directed City District Government Rawalpindi and all the town municipal administrations to re-auction contracts for renting out its shops, petrol and CNG filling stations to generate more revenue.

Officials told Dawn on Thursday that the decision was taken in view of the low rent of the property.

They said the petrol and CNG filling stations established on government land had been rented out for Rs70,000 to Rs90,000 per month against the current market rate of Rs200,000, and shops given on rent at Rs800 to Rs2,000 per month. However, private shops in the same areas were available for Rs5,000 to Rs8,000 per month.

The officials said there were eight petrol and CNG filling stations constructed on government land in Rawalpindi district - five under the Rawal Town Municipal Administration, one each with Murree tehsil, city police and the Punjab highway department.

In the Rawalpindi city, total 2,660 shops have been given at nominal rents which generated only Rs60 million annually. Now the government wants to give these shops on rent through open auction.

When contacted, Assistant Commissioner Saif Anwar Jappa said District Coordination Officer Saqib Zafar had directed the TMAs to prepare working papers within a week to reassess the market value of the government property.

He said CDGR and the TMAs wanted to increase the rent but there were a number of complications as most of the shops were under the occupation of different tenants for the last 30 years.

He said after receiving the directives from the provincial government, the TMAs would start work to re-assess the market value of the property. The official said the government had changed the system of lease agreements and under the new policy it would be valid for three to five years which was earlier 30 years. —Aamir Yasin