LHC Suspends Implementation of Punjab Local Government Act 2025

ISLAMABAD / RAWALPINDI — In a major legal setback for the provincial government, the Lahore High Court’s Rawalpindi Bench suspended the implementation of the Punjab Local Government Act (PLGA) 2025 on Friday, February 6, 2026.

The court specifically stayed the provision that grants the provincial government the power to reclassify any “revenue estate” as an urban area by executive decree—a power the petitioner described as being exercised with “a single stroke of a pen.”

Maple Leaf Cement vs. Province of Punjab

The interim order was issued by Justice Jawad Hassan during a hearing of a writ petition filed by Maple Leaf Cement Factory Limited.

• The Dispute: The company challenged the government’s decision to declare the revenue estate of Daud Khel Pacca (Mianwali) as an “urban area.”
• Petitioner’s Argument: Counsel Mirza Mehmood Ahmad argued that 80% of the area remains rural, consisting of hilly, industrial, and agricultural land. He contended that the classification was arbitrary and violated the Punjab Demarcation, Classification and Naming of Local Areas Rules, 2025.
• Environmental Concerns: The petitioner warned that forced urbanization would lead to the loss of agricultural land, increased flood risks, and severe pressure on water resources, violating the fundamental right to a clean environment.

The 26th Amendment

The court also examined the maintainability of the petition under the 26th Constitutional Amendment (2024).

• Jurisdiction: The amendment limits the High Court’s ability to grant relief beyond the specific prayers in a petition.
• Precedent: Justice Hassan referred to the recent Kakakhail Traders v. Province of Punjab case to determine the scope of the court’s constitutional jurisdiction in light of the new amendment.

Government’s Defense

The Punjab government’s Law Officer objected to the petition, maintaining that:

1. The demarcation process followed Rule 10 of the Punjab Demarcation Rules, 2025.
2. The provincial government has the legal authority to structure local areas into town corporations or municipal committees to improve service delivery.

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Summary of Court Directions