SURVEY REPORT 2025

WATER SALE & BUILDING CONTROL SURVEY

Daska | Pattoki | Rahim Yar Khan | Sambrial

Punjab Municipal Development Fund Company (PMDFC)

184 Scotch Corner, Upper Mall, Lahore, 54000
(042) 99204386-89
[Link] /pmdfc official /pmdfc
info@[Link]
 Acknowledgment
The Invaluable financial, technical, and logistic support provided by the project stakeholders including Sub National
Governance (SNG), Local Government and Community Development (LG&CD) Department, and partner local governments
is sincerely acknowledged, which made it possible to complete the project with its intended objectives.

i
ACRONYMS
D&C Demand and Collection
GIS Geographical Information System
LG&CDD Local Government & Community Development Department
Lg Local government
MCs Municipal Committees
OSR Own Source Revenue
PMDFC Punjab Municipal Development Fund Company
PLGA Punjab Local Government Act
SNG Sub-National Governance

ii
‘

EXECUTIVE SUMMARY
Introduction and Purpose
This survey presents the findings of a comprehensive assessment of municipal revenue streams in selected Municipal Committees (MCs) across Punjab – Daska,
Patoki and Rahim Yar Khan for water sale and Sambrial for Construction fee/ conversion fee/ approval of building plans, focusing on water supply services, building
plan approvals, and conversion fees. The objective of the survey was to identify systemic challenges, validate untapped revenue potential through GIS-enabled
field surveys. The analysis underlines the urgent need for local governments to enhance their fiscal space in order to sustainability finance urban services, improve
transparency, and ensure accountable municipal financial management.

Methodology
The survey employed a structured, GIS-enabled survey methodology to map water connections, building permits, and land-use conversions across the target MCs.
Field verification was triangulated with municipal records and validated through consultations with MC staff. This approach produced a reliable baseline of untapped
revenue and quantified the gap between assessed liabilities and actual collections. For example, in Sambrial alone, the survey identified a potential of PKR 993 million
from unapproved residential and commercial buildings and conversion cases, illustrating the magnitude of untapped fiscal space.

Survey Findings
Across all surveyed MCs, the data confirmed a significant disparity between potential and actual revenues. In water supply, thousands of connections remain
unregistered, pointing to a large untapped billing base. In construction approvals, a substantial portion of buildings were erected without approval, resulting in lost fee
income. Conversion fee assessments further highlighted the mismatch between potential liabilities and recoveries. Revenue leakage across these streams collectively
amounts to hundreds of millions of rupees annually, undermining fiscal capacity for service delivery and urban management.

Cross Cutting Reforms

To institutionalize reforms, municipal revenue surveys should be repeated periodically to update baselines, and a provincial OSR dashboard should be developed
for real-time monitoring of performance. Provincial grants can be linked to demonstrated improvements in OSR recovery and compliance. Strengthening citizen
engagement through awareness campaigns, complaint redress systems, and feedback loops will be critical to build trust, improve willingness to pay, and align
municipal revenues with citizen expectations. Lessons from international experiences—such as Istanbul’s zoning reforms, Singapore’s GIS-enabled master planning,
and Dubai’s fast-track digital permitting systems—offer valuable insights for adapting innovative approaches in Punjab.

Conclusion
The assessment demonstrates that Punjab’s municipal committees hold significant untapped revenue potential, particularly in water supply, construction approvals,
and conversion fees. Unlocking this potential requires a coherent strategy that combines regulatory reforms, digital transformation, institutional capacity building, and
active citizen engagement. If effectively implemented, these measures could unlock billions of rupees in additional revenues, expand municipal fiscal space, and enable
local governments to provide sustainable, equitable, and transparent urban services.

iii
 CONTENTS

01 INTRODUCTION 02 SITUATION ANALYSIS

Survey Overview 02 Situation Analysis 04
Purpose and Objective 03

03 SURVEY METHODOLOGY
Methodological Model 05
04 DATA ANALYSIS
Water Sale Survey 07
Data Collection 06 Daska 09
Pattoki 17
Rahim Yar Khan 25
Building Control Survey 33
Sambrial 33

05 RECOMMENDATIONS
Water Sale Survey 37
Building Control Survey 38

IV
LIST OF Figure 01: Active & Closed Connections & Alternative Arrangements (FY 2024-25)
Figure 02: Reconciliation of D&C Register and Household Survey (FY 2024-25)


10
10
FIGURES Figure 03: Types of water supply connections (FY 2024-25)
Figure 04: Types of water supply alternative arrangements (FY 2024-25)


11
11
Figure 05: Property Sizes (FY 2024-25) 12
Figure 06: Availability of water supply lines and willingness to pay for Govt. Connection (FY 2024-25) 12
Figure 07: Water supply service condition and quality of active connections (FY 2024-25) 13
Figure 08: Revenue Deficit (Million PKR) - FY 2024-25 14
Figure 09: Proposed model for potential revenue surplus: Water tariff on domestic bores (Million PKR) - FY 2024-25 15
Figure 10: Active & Closed Connections & Alternative Arrangements (FY 2024-25) 18
Figure 11: Reconciliation of D&C Register and Household Survey (FY 2024-25) 18
Figure 12: Types of water supply connections (FY 2024-25) 19
Figure 13: Types of water supply alternative arrangements (FY 2024-25) 19
Figure 14: Property Sizes (FY 2024-25) 20
Figure 15: Availability of water supply lines and willingness to pay for Govt. Connection (FY 2024-25) 20
Figure 16: Water supply service condition and quality of active connections (FY 2024-25) 21
Figure 17: Revenue Deficit (Million PKR) - FY 2024-25 22
Figure 18: Proposed model for potential revenue surplus: Water tariff on domestic bores (Million PKR) - FY 2024-25 23
Figure 19: Active & Closed Connections & Alternative Arrangements (FY 2024-25) 26
Figure 20: Reconciliation of D&C Register and Household Survey (FY 2024-25) 26
Figure 21: Types of water supply connections (FY 2024-25) 27
Figure 22: Types of water supply alternative arrangements (FY 2024-25) 27
Figure 23: Property Sizes (FY 2024-25) 28
Figure 24: Availability of water supply lines and willingness to pay for Govt. Connection (FY 2024-25) 28
Figure 25: Water supply service condition and quality of active connections (FY 2024-25) 29
Figure 26: Revenue Deficit (Million PKR) - FY 2024-25 30
Figure 27: Proposed model for potential revenue surplus: Water tariff on domestic bores (Million PKR) – FY 2024-25 31
Figure 28: Commercial and residential streets visited 34
Figure 29: Residential building map status (FY 2024-25) 35
Figure 30: Commercial building map status (FY 2024-25) 35
Figure 31: Building legal status (FY 2024-25) 35
Figure 32: Potential revenue (Million PKR) - FY 2024-25 36

LIST OF Table 1: Potential revenue surplus (Daska): Water tariff on Domestic bores (PKR) - FY 2024-25
Table 2: Potential revenue surplus (Pattoki): Water tariff on Domestic bores (PKR) - FY 2024-25
16
24
TABLES Table 3: Potential revenue surplus (Rahim Yar Khan): Water tariff on Domestic bores (PKR) - FY 2024-25
Table 4: Potential Revenue (PKR) (Sambrial) - FY 2024-25
32
36

V
1. INTRODUCTION
 Water Sale and Building Control Survey

INTRODUCTION
Local governments in Punjab play a central role in bringing governance closer to citizens by ensuring
efficient municipal service delivery at the grassroots level. Municipal Committees are responsible
for managing core services such as water supply, solid waste management, street lighting, and
infrastructure development, alongside functions in budgeting, local regulation, health, and
education. To perform these functions effectively, Own Source Revenue (OSR) is critical, as it
enables municipalities to finance services without excessive reliance on provincial transfers or
external funding. Key revenue streams include water supply tariffs and building plan approvals,
both of which directly contribute to sustainable service delivery and improved urban planning.
However, persistent gaps; such as unapproved constructions, illegal or unregistered water
connections, and weak enforcement of local regulations; undermine municipal revenues and
service delivery performance. GIS-enabled surveys on water supply and building control
have revealed significant discrepancies between actual service usage and recorded revenue
streams, highlighting untapped revenue potential. This survey presents the findings of
water sale and building control surveys conducted fin selected local governments of
Punjab. By addressing compliance gaps and institutional weaknesses, the surveys aim
to support municipalities in enhancing revenue mobilization, improving service delivery,

DASKA PATTOKI

34,022 19,277
Households Households

RAHIM YAR KHAN SAMBRIAL

82,949 19,731
Households Households

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 Water Sale and Building Control Survey

Survey Overview
The Water Sale and Building Control Survey was jointly initiated by the Sub-National Governance Programme (SNG), the Punjab Municipal Development Fund
Company (PMDFC), and the Local Government & Community Development (LG&CD) Department to strengthen local government revenue generation and
service delivery. SNG, operating in Punjab and Khyber-Pakhtunkhwa, focuses on enhancing planning, public financial management, and governance, with a
strong emphasis on building sustainable capacities for improved service delivery. Within this framework, PMDFC, as the technical arm of the LG&CD Department,
was assigned responsibility for survey execution. The survey was conducted across selected Municipal Committees to establish accurate baselines for two
critical areas of Own Source Revenue (OSR): (i) provision of water and (ii) approval of construction plans and collection of conversion fees. Using a structured
methodology, survey teams employed mobile applications and GIS mapping to ensure reliable data collection and spatial accuracy. Local surveyors were
trained and supervised to strengthen municipal capacities and ensure sustainability beyond the project’s duration. The initiative builds on the successful pilot
in Municipal Committee Rahim Yar Khan, where revenues increased significantly following a similar survey-led intervention. By identifying unregistered water
connections, unauthorized constructions, and gaps in compliance, the survey aims to optimize revenue collection, improve data transparency, and strengthen
urban governance. The collaboration among SNG, PMDFC, and LG&CD Department has therefore provided a scalable model for enhancing municipal finances,
ensuring compliance, and enabling evidence-based decision-making for improved service delivery. PMDFC has conducted these surveys through surveyors
opted from the selected cities, providing them opportunity to grow. PMDFC has developed modern tools of surveys and at the end, performed analytic reports
generation and revenue models that can optimize the expenditure vs. revenue deficit to a surplus level.

Water Sale Survey

Water Sale Survey was conducted in three selected cities in Punjab including Pattoki, Daska, and Rahim Yar Khan. All commercial and
residential facilities were visited to assess registered, illegal, closed, and alternative water supply connections along with old and new
connection numbers, current tariff being paid, and connection type. Size of the property / household and residential status was also assessed.

Building Control Survey Domestic & Commercial Connections Residential & Commercial
(Buildings & Shops)
Similarly, Building Control Survey Domestic Commercial Other Total
was conducted in Sambrial. 2,799 2,893
4,639 4,748

Total number of residential and 1,098 1,141

commercial buildings were identified 23,997

and status of approved, applied and

94
unapproved maps was assessed. 73 14,971
33
Current status of the buildings 21
15
was also identified whether the 10 8,761

buildings are permitted, permissible,

or prohibited for residence and 265
commercial purpose.
Daska Pattoki Rahim Yar Khan Residential Commercial Other Total

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 Water Sale and Building Control Survey

Purpose & Objectives

Purpose
The survey was designed to assess the revenue potential of water supply, construction plan approvals, and conversion fees in selected
local governments, comparing these estimates with actual revenue streams to identify disparities and revenue leakages. By highlighting
these gaps, the survey provided evidence for tariff rationalization, ensuring competitiveness and maximizing revenue generation. It also
offered a comprehensive analysis of how existing practices aligned with market trends and where policy or operational adjustments were
required to strengthen financial outcomes for municipal authorities. Ultimately, the survey supported Municipal Committees in optimizing
revenue streams, improving service delivery, and ensuring regulatory compliance, thereby contributing to a more effective, transparent, and
financially sustainable system of local governance.

Objectives

Potential Revenue Identification of Transformation to

Streams Discrepancies E-Billing

To evaluate potential in own source To identify the discrepancies such To provide actionable data for local
revenue streams for Water Sales as unapproved buildings, illegal governments to introduce E-Billing
and Construction Plans and land water connections, and lack of systems for bills generations and
Conversions. compliance with local government collection process
regulations relating to water
supply and construction plans
approvals.

03
2. SITUATION ANALYSIS
 Water Sale and Building Control Survey

Situation Analysis:
A thorough situational analysis was conducted to evaluate the current state and gaps in Water Sales and Property Construction revenue streams. This
included an in-depth review of three years of income and expenditure data for water supply services to guide the survey design and data collection approach.

GAPS SOLUTIONS RESULTS

Except for MC Daska, systematic To address these gaps, a Upon completion of the Survey,
data on water consumers comprehensive field survey was Data will be cleaned and
and building plan approvals executed prior to the implementation reconciled with the respective
or conversion cases is largely of revenue streamlining measures. municipal committee’s manual
unavailable across the municipal In collaboration with SNG, PMDFC records. Findings of the survey will
committees. Records are finalized the survey tools. An also be shared with SNG, Deputy
maintained manually, often interactive analytical dashboard Commissioner, Administrators
without updates on connection was also designed to facilitate real- and Chief Officers of selected
statuses. Fee recovery and arrears time monitoring and visualization of Municipal Committees. Water
management rely on manual survey results. Supply survey data will be linked
receipt books, with insufficient Young survey teams were locally with central E-Billing System of
recovery staff contributing to recruited within each municipal Local Government which will
low collections and increasing committee, while strategic and extend the payments facilities
arrears. Moreover, most municipal administrative support was secured through e-Payment gateways.
committees lack an automated from the respective Deputy This Survey will also identify the
billing system, further limiting Commissioners, Administrators, Revenue Potential in Water Sale
efficiency and transparency. and Chief Officers to ensure smooth and Building Plan Approval and
execution. Conversion Cases.

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3. SURVEY METHODOLOGY
 Water Sale and Building Control Survey

Methodological Model
Survey Design and Tool Development Recruitment & Training Survey Teams Data Compilation, Validation, and Analysis
(1) Development of survey questionnaires for (1) Hiring of enumerators and supervisors (1) Cleaning and reconciliation of data
water connections and construction plan/ with local knowledge. collected from the field.
conversion fee (2) Training sessions on mobile app use, GIS (2) Cross-checking with municipal financial
(2) Customization of a mobile application mapping, and data validation protocols. records and expenditure data.
and dashboard for real-time data entry. Output/Objective: Field teams capacitate (3) Preparation of revenue potential estimates.
Output/Objectives: Digital tools to conduct reliable and standardized data Output/Objective: Reliable baselines
established to ensure accuracy, transparency, collection. established for water tariffs, construction
and centralized data capture. approvals, and conversion fees.

01 03 05

02 04 06

Stakeholder Engagement and Liaison Field Execution of Surveys Reporting and Knowledge Sharing
(1) Coordination with Municipal Committees (1) Household and commercial surveys for (1) Preparation of interim and final reports
(MCs), Deputy Commissioners, and district water connections. summarizing survey findings
administrations (2) Mapping of construction activities, (2) Demonstration od survey result to
(2) Orientation meetings to secure local buy- approvals, and conversion fee records respective SNG, Deputy Commissioners,
in and logistical support. (3) Use of GIS-enabled systems for spatial Administrators and Chief Officers of
Output/Objectives: Institutional support verification. respective Municipal Committees
ensured for smooth field operations and Output/Objective: Comprehensive Output/Objective: Evidence-based
adoption of results. datasets generated on unregistered water recommendations produced for improving
connections, unauthorized buildings, and revenue mobilization, compliance, and
revenue gaps.S governance.

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 Water Sale and Building Control Survey

Data Collection:
Surveyors were mobilized to collect field data from households and commercial facilities pertaining to water supply connections and construction plans. A
mobile application developed by PMDFC was utilized for real-time data entry on water connections, construction plans, and property conversions. Moreover,
GIS mapping accompanied the data collection, enabling spatial visualization of surveyed properties and water connections to ensure data integrity and quality
control during collection. All data collected from filed fetched in Online dashboard to access at any time. SNG and LG&CD department assisted PMDFC with
ensuring smooth data collection and mobilizing local resources and provided support in managing the logistics.

WATER SALE SURVEY BUILDING CONTROL SURVEY

Households surveyed and identified: Buildings surveyed and identified:

» Active water supply connections » No of residential and commercial buildings

» Alternative water supply arrangements » Approved maps of residential buildings
» Dead/closed water supply connections » Approved maps of commercial buildings
» Old and new water supply connection numbers » Applied maps for residential and commercial
» Water rate, property type and property size buildings
» Residential status and locality » Residential buildings with unapproved maps
» Water connection type » Commercial buildings with unapproved maps
» Respondents address and contact numbers » Identification of permitted, permissible, and
» Sector and locality of the households prohibited buildings

Data collection was performed pertaining to two major activities including Water Sale and Building Control Survey

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4. DATA ANALYSIS
 Water Sale and Building Control Survey
FY 2024-25
DASKA PATTOKI RAHIM YAR KHAN SAMBRIAL
Water Sale Survey Water Sale Survey Water Sale Survey Building Control Survey

100% 100% 100% 100%

36,905 23,047 90,782 36,905

23,997
Households Surveyed Households Surveyed Households Surveyed Households Surveyed

08% 05% 05% 08%

37%

2,893 (08%) 1,141 (05%) 4,748 (05%) 2,893(37%)

8,761 (08%)
Active Connections (Including Not in D&C) Active Connections (Including Not in D&C) Active Connections (Including Not in D&C) Active Connections
Residential Buildings

92% 95% 95% 92%

62%

34,012 (92%) (Including

21,906 (95%) (Including
86,034 (95%) (Including
34,012(62%)
14,971 (92%)
Alternative Arrangements Dead/Closed) Alternative Arrangements Dead/Closed) Alternative Arrangements Dead/Closed) Alternative Arrangements
Commercial Buildings/Shops

5.2%

5.2% 8.6% 08% 1,918

37% (5.2%)
1,918 (5.2%) 1,981 (8.6%) 6,844 (08%) 8,878 (37%)
Dead/Closed Connections

Dead/Closed Connections Dead/Closed Connections Dead/Closed Connections Approved

0.5% Maps

0.5% 0.1% 0.0%

199
1%
(0.5%)
199 (0.5%) 23 (0.01%) 17 (0.01%) 154 (1%) Register
Not in D&C

Not in D&C Register Not in D&C Register Not in D&C Register Applied
2.6%Maps

2.6% 2.8% 0.7%

9592.6%(2.6%)
959 (2.6%) 641 (2.8%) 625 (0.7%) 14,700 (61%)
Commercial activities on residential
properties
Commercial activities on residential Commercial activities on residential Commercial activities on residential Buildings With Unapproved Maps
properties properties properties

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 Water Sale and Building Control Survey

Proposed Models For Potential Revenue (Rs. Million) - (FY 2024-25)

Daska, Pattoki, Rahim Yar Khan (Water Sale Survey) | Sambrial (Building Control Survey)

Daska (Million PKR)-FY 2024-25 Pattoki (Million PKR)-FY 2024-25

Total potential revenue Expenditure Total potential revenue Expenditure
Actual revenue Expenditure recovered Actual revenue Expenditure recovered
Potential revenue Surplus Potential revenue Surplus

Expenditure Expenditure
Expenditure recovered Expenditure recovered
Deficit Deficit 17.3
27.7
32.5
59.8 36.5
Actual revenue 72.1 Actual revenue
Actual collected revenue Actual collected revenue
Recovery loss 39.9
44.4 44.4 44.4 Recovery loss
19.2 17.5 19.2 19.2

12.3 7.8 12.3 4 2.3

4.5 4.5 1.7 1.7 4
Revenue Deficit Potential Revenue Surplus Revenue Deficit Proposed Revenue Surplus

Rahim Yar Khan (Million PKR)-FY 2024-25 Sambrial (Million PKR)-FY 2024-25
Total potential revenue Expenditure
Actual revenue Expenditure recovered
Surplus
Potential revenue Conversion fee 55.9

Expenditure
Expenditure recovered 64.3
Deficit

103.1
Domestic revenue 249.1
120.1
Actual revenue
Actual collected revenue
Recovery loss Commercial revenue 688.6
55.8 50.7 55.8 55.8

17 11.9 17
5.1 5.1
Total 993.6
Revenue Deficit Proposed Revenue Surplus

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DASKA
 Water Sale and Building Control Survey

Daska City Profile: Daska, located in Sialkot District of Punjab, serves as the tehsil headquarters and has historically been influenced by Mughal,
Sikh, and British rule. The city’s economy is driven by agriculture, small-scale industry, and trade, with local expertise in the manufacturing of agricultural tools
and machinery. Despite fertile agricultural land, Daska faces persistent challenges in ensuring adequate and sustainable water supply. Currently, the Municipal
Committee provides an average of eight hours of water supply daily.

Municipal Committee Daska: Established under the Punjab Local Government Act (PLGA) 2013, MC Daska is mandated to provide municipal
services including water supply, sewerage, solid waste management, street lighting, road infrastructure, and public park development. Household surveys
reveal that out of 36,905 households, only 8% have active water connections, while 92% rely on alternative arrangements such as bores and hand pumps. Most
properties (83%) are up to five marlas in size, reflecting a predominantly middle-class population.

Water Supply – Service Gaps and Challenges: The survey highlights significant service deficiencies. Around 68% of households lack
access to water supply lines, with the majority unwilling to opt for government connections due to poor service quality. Among existing users, 76% rate the water
service as poor, and 66% report contaminated supply. The system is heavily underutilized, with 97% of active connections serving domestic purposes, while
industrial and commercial connections remain negligible.

Provision of Water – Assessment & Revenue Potential: MC Daska’s water supply operations face a severe financial deficit. In
FY 2024–25, revenues stood 4.5 Million PKR against expenditures of 44.4 Million PKR, resulting in a 39.9 Million PKR deficit (around 90%). To address this, two
viable revenue models are proposed:

1. Tariff on Domestic Bores – imposing tariffs on identified domestic and commercial bores alongside sewerage connections could generate a surplus 27.7 Million PKR.
2. Tariff on Property Size (Marla-Based) – applying tariffs across property size categories could generate a surplus of 66.7 Million PKR at full recovery.
Both models require effective enforcement, efficient billing systems, and citizen compliance to ensure cost recovery and long-term viability.

228,626 34,022 6.72 3,418 07

Population Households Household Size Registered Connections No of Turbines

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 Water Sale and Building Control Survey

36,905 Househols
Surveyed Figure 01: Active & Closed Connections & Figure 02: Reconciliation of D&C Register
Alternative Arrangements (FY 2024-25) and Household Survey (FY 2024-25)
2,893 (08%) Active
Connections
Active
Connections 36,905

34,012 (92%) Alternative (2,893, 08%)

Arrangements 3,418 2,893
Households Closed but have
Surveyed Alternative 525

1,918 (5.2%) Dead/Closed Arrangements

Connections
36,905 (1,918, 05%)

Alternative
199 (0.5%) Not in D&C
Register
Arrangements
(32,094, 87%)
Total Alternative Survey conducted Connections in Active Connections

959 (2.6%) Commercial activity on

residential properties
Arrangements
(34,012, 92%)
D&C register connections under
reconciliation

Active & closed connections & Reconciliation of D&C register and

alternative water supply arrangements household survey
Total number of water supply household survey conducted were Number of registered connections found in D&C register were 3,418.
36,905. Households with active water supply connections accounted These connections were verified and reconciled with the active
for 2,893, which are 08% of the total households surveyed. Dead water supply connections found in the survey (2,694) and those
or closed water supply connections were 1,918, 5.2%, however, which are active but not in D&C (199). The results indicate that 525
citizens have arranged alternative sources to acquire water supply. active water supply connections are yet to be reconciled in both
Similarly, households who don’t have water supply and relying upon water supply D&C register and water supply household survey (See
alternative arrangements accounted for 34,012, 92% (See figure 01). figure 02).

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 Water Sale and Building Control Survey

Figure 03: Types of water supply Figure 04: Types of water supply alternative
connections (FY 2024-25) arrangements (FY 2024-25)

Domestic 2,799 (96.7%) Bore 30,951 (91%)

Commercial 73 (2.5%) Hand Pumps 1,270 (3.7%)

Government 11 (0.38%) Filtration Plant 1,102 (3.2%)

Welfare 7 (0.24%) Private Tankers 671 (2%)

Industrial 3 (0.10%) Canal 18 (0.1%)

Types of water supply connections Types of water supply alternative

Of the total intact water supply connections, 96.7% (2,799) arrangements
connections are domestic and used by households for domestic
purpose. This implies that most of the water supply is utilized for Majority of the households in Daska rely upon alternative
domestic use. Similarly, 2.5% (73) connections are of commercial arrangements for water supply. A water bore is the most commonly
nature followed by Government, welfare and industrial connections. used for that purpose. Survey reveals that 30,951 (91%) households
(See figure 03). However, they are limited in number. The survey use water bore to fulfill their water consumption needs followed by
results implies that MC Daska is majorly responsible for provision of hand pumps (1,270, 3.7%) and other sources such as filtration plants,
water supply as a municipal service to general public. private water tankers, and canal (See figure 04).

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 Water Sale and Building Control Survey

Figure 05: Property Sizes (FY 2024-25)

Property sizes:
0-3 Marla 12,521 (33.9%) Assessment of property size is an important factor which
can be considered while assessing improvement in potential
water supply revenue streams and imposition of water supply
3.1-5 Marla 17,918 (48.6%) tariffs. Therefore, analysis on property sizes was performed
and the results reveal that majority of the households (17,918,
48.6%) resides in the property sizes comprised of three to five
5.1-10 Marla 5,819 (15.8%) Marla houses followed by up to three Marla (12,521, 33.9%)
and 5 to 10 Marla (5,819, 15.8%).
10.1-15 Marla 356 (1%)
Survey results implies that majority of the population in the
city is middle class. Although households with property size
of above 10 Marla exist in the city, however, their number is
15.1-20 Marla 186 (0.5%)
minimal and don’t represent large portion of the households
in the city.
20+ Marla 105 (0.2%)

Figure 06: Availability of water supply lines and Availability of water supply lines and
willingness To Pay For Govt. Connection (FY 2024-25) willingness for Govt. connection
23,250, 68% of the households who don’t have water supply
Water supply lines availability -23,250 (68%) 10,762 (32%) connection don’t have access to the water supply lines. Lack
of water supply infrastructure is a key challenge in provision
of water supply to citizen. Moreover, most of the households
rely upon alternative arrangements for water supply and they
Willingness for Govt connection -20,342 (60%) 13,670 (40%) are not willing to take Government water supply connection
(See figure 06). Hence, water supply service needed to be
No Yes improved.

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 Water Sale and Building Control Survey

Figure 07: Water supply service condition and quality of active connections (FY 2024-25)

Water supply service quality Water supply condition

2,186 (76%)
1,912 (66%)

659 (23%)
573 (20%)
319 (11%)
134 (5%)

Good Fair Bad Clean Mixed Contaminated

Water supply service quality Water supply condition

Water service quality refers to how well a water supply system meets Households were investigated about the water quality in terms of
the needs of users in terms of customer satisfaction. Perception about safe, clean, and reliable delivery of water in compliance with health
water service condition was poor among households with active water and safety standards. 66% (1,912) of the households stated that the
supply connection (2,893) and large number of households (2,186, water supply is contaminated and needs to purify. Around 23% of the
76%) rated poor and perceive that service needed to be improved. respondents perceived that water quality is moderate for domestic
Only 05% (134) of the respondents believe service is good followed by use and only 11% of the households stated that they are satisfied
20% who are in view that quality level is just acceptable (See figure 07). with the quality of the water (See figure 07)

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 Water Sale and Building Control Survey

Figure 08: Revenue Deficit (Million PKR) - FY 2024-25

44.4 Revenue deficit
Present condition of water supply own source revenue is not satisfactory.
Revenue is in deficit for the FY 2024-25. The actual revenue is 4.5 Million
17.0 PKR and expenditure are 44.4 Million PKR. The MC Daska is not in
5.1
position to cover its expenditures with its current own source revenue.
Deficit The total deficit is 39.9 Million PKR which is around 90% (See figure 08).
The results implies that there is not only need to recover water supply
Actual Actual Expenditure
tariffs but to implement a viable model of potential revenue surplus to
Revenue Collected Revenue
enhance own source revenue. It is necessary for MC’s self-sufficiency
to bear water supply expenditure without relying upon Government or
external fundings. Therefore, there is need to come up with a viable source
of own source revenue which essentially covers up all expenditure.
-39.9 (90%)

Proposed models for potential revenue surplus

A revenue deficit in water supply services occurs when the income generated from water tariffs and other related sources is not sufficient to cover the operational
and maintenance costs of providing water. This deficit can lead to serious challenges for water utilities and the public. It often results in poor maintenance of
infrastructure, frequent service disruptions, and reduced water quality due to the lack of funds for treatment and distribution. Over time, the deficit may force local
governments to rely on subsidies or loans, which can strain public finances. Additionally, underpricing water discourages conservation and leads to wastage,
further deepening the problem. Addressing this issue requires better tariff structures, efficient billing systems, and investment in infrastructure to ensure long-term
sustainability and reliable service delivery.

Therefore, based upon the current condition of own source revenue, two potential model of revenues are proposed when implemented, result in revenue surplus.
Models are presented with varying levels of recovery to assess the level of revenue is generated by each model on a specific level of tariff recovery by the local
government. The models is as follows.

• Water tariff on domestic bores

• Water tariff on Marla categories

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 Water Sale and Building Control Survey

Figure 09: Proposed model for potential revenue surplus: Water tariff on domestic bores (Million PKR) - FY 2024-25
Total potential revenue Expenditure
Actual revenue Expenditure recovered
Potential revenue Surplus

Expenditure
Expenditure recovered
Deficit 27.7

59.8
72.1
Actual revenue
Actual collected revenue
44.4 39.9 44.4 44.4

12.3 7.8 12.3

4.5 4.5
Revenue Deficit Potential Revenue Surplus

Proposed model for potential revenue surplus: Water tariff on domestic bores
This model produces revenue surplus of 27.7 Million PKR (See figure 09). The model proposed that tariff will be imposed on identified connections, domestic
and commercial bores, and sewerage connections on monthly basis and resulting tariff collection for 12 months will be added in actual present revenue. .
The model will successfully covers water supply expenses with out any revenue deficit. The success of any model depends on the level of recovery. This is
the responsibility of the district and local governments to make sure 100% recovery is being made to ensure own source revenue surplus. Moreover, its a
viable solution to impose tariffs on domestic bores along with sewerage and identified connections. Without imposition of tariffs, revenue streams will be
in deficit and goal of self-sufficiency will not be attained. The breakdown of tariff calculation is given in Table 01.

15
 Water Sale and Building Control Survey

Table 01: Potential revenue surplus (Daska): Water tariff on domestic bores (PKR) - FY 2024-25

Number Tariff (Rs/month) Duration (Months) Revenue

Connections Identified 199 300 12 716,400

Bore Connections (Domestic) 27,264 100 12 32,716,800

Bore Connections (Commercial) 3,684 500 12 22,104,000

Sewerage Connections 7,055 50 12 4,233,000

Potential Revenue 59,770,200

NOTE: All revenue streams are calculated on yearly basis (12 months) for both models

Proposed model for potential revenue surplus: Water tariff on Marla categories
Second model proposed that except domestic bores, tariff should be imposed on all Marla sizes, sewerage and commercial bores along with identified
connection. The resulting tariff will be calculated on monthly basis and yearly revenue will be added in current revenue. This model provides revenue
surplus of 66.7 Million PKR. In this model, households will be charged tariffs on the basis of the size of the property. The household area divided into 6
categories of house in terms of Marla size. Success of the model depends on the recovery of tariffs, the more will be the recovery, the more will be the
revenue. This is not only the responsibility of the local governments to collect the tariffs, but also the responsibility lies on the shoulders of the citizen as
well to regularly pay utility bills to make sure obligation on their part is fulfilled.

16
PATTOKI
 Water Sale and Building Control Survey

Pattoki City Profile: Pattoki, the tehsil headquarters of Kasur District, is widely known as the “City of Flowers” due to its extensive nurseries in the
Gehlan area, among the largest in Asia, with exports reaching countries such as Saudi Arabia and the UAE. The city’s economy is therefore horticulture-driven
alongside agriculture, trade, and services. Like many semi-urban canters in Punjab, Pattoki faces challenges of inadequate water supply infrastructure and limited
coverage, with only 5% of households receiving piped supply for an average of eight hours daily.

Municipal Committee Pattoki : Formed under the Punjab Local Government Act (PLGA) 2013, MC Pattoki is responsible for providing core urban
services, including water supply, sanitation, solid waste management, and road and infrastructure maintenance. A household survey covering 23,047 households
showed that only 5% have active water supply connections, while 95% rely on alternative arrangements and 9% reported dead or closed connections. Most water
supply is used domestically (94%), while commercial and government connections remain limited

Water Supply – Service Gaps and Challenges: Survey findings indicate that 95% of households relying on alternative arrangements
lack access to water supply lines, with 62% unwilling to obtain government connections due to poor service delivery. Water service quality is perceived as weak,
with a majority rating it poor. Similarly, water quality concerns persist, as 25% of households report contamination and only 17% express satisfaction with supply.
The heavy reliance on bores (78%) and private tankers (16%) highlights the inadequacy of municipal systems and underlines the urgent need for infrastructure
expansion and service reliability.

Provision of water – Assessment & Revenue Potential: MC Pattoki’s water supply operations face a severe fiscal imbalance. In
FY 2024–25, revenues totalled PKR 1.7 million against expenditures of 19.2 Million PKR, leaving a deficit of 17.5 Million PKR (91%). To address this unsustainable
gap, two models are proposed:

1. Tariff on Domestic Bores – imposing tariffs on identified domestic and commercial bores and sewerage connections could generate a surplus of 16.3 Million PKR.
2. Tariff on Property Size (Marla-Based) – applying tariffs across household property size categories could generate a surplus of 39.6 Million PKR at full recovery.
Both models offer viable pathways toward self-sufficiency, but their success hinges on effective tariff recovery, improved billing systems, and citizen compliance,
alongside municipal accountability.

113,735 19,277 5.9 1,100 07

Population Households Household Size Registered Connections No of Turbines

17
 Water Sale and Building Control Survey

23,047 Household
Surveyed Figure 10: Active & Closed Connections & Figure 11: Reconciliation of D&C Register and
Alternative Arrangements (FY 2024-25) Household Survey (FY 2024-25)
1,141 (5%) Active
Connections
Active
Connections 23,047

21,906 (95%) Alternative

Arrangements
(1,141, 05%)
1,141 1,100
Household Closed but have
Alternative
Surveyed
1,981 (8.6%) Dead/Closed
Connections
Arrangements
41

23,047
(1,981, 8.6%)
Alternative

23 (0.1%) Not in D&C

Register
Arrangements
(19,925, 86%)
Survey conducted Active Active New connections
Total Alternative
conennections connections in identified
641 (2.8%) Commercial activities/ Arrangements
D&C register
residential properties (21,906, 95%)

Active & closed connections & Reconciliation of D&C register and

alternative water supply arrangements household survey
Total number of water supply household survey conducted were Number of registered connections found in DNC register were 11,00.
23,047. Households with active water supply connections accounted These connections were verified and reconciled with the active
for 1,141, which are 05% of the total households surveyed. Dead or water supply connections identified in household survey. The results
closed water supply connections were 1,981, 8.6%, however, citizens indicate that 1,100 active water supply connections were reconciled
have arranged alternative sources to acquire water supply. Similarly, in both water supply D&C register and water supply household
households who don’t have water supply and relying upon alternative survey and 41 new connections found (See figure 11).
arrangements accounted for 21,906, 95% (See figure 10).

18
 Water Sale and Building Control Survey

Figure 12: Types of water supply connections Figure 13: Types of water supply alternative
(2024-25) arrangements (2024-25)

Domestic 1,098, 96.2% Bore 16,716 (76.3%)

Commercial 33, 2.9% Private Tankers 3,321 (15.2%)

Welfare 5, 0.4% Filtration Plant 1,222 (5.6%)

Canals 544 (2.5%)

Government 5, 0.4%

Handpumps 101 (0.5%)

Industrial

Types of water supply connections Types of water supply alternative

Of the total intact water supply connections , 96.2% (1,098) arrangements
connections are domestic and used by households for domestic
purpose. This implies that most of the water supply is utilized for Majority of the households (21,906) in Pattoki rely upon alternative
domestic use. Similarly, 2.9% (33) connections are of commercial arrangements for water supply. A water bore is the most commonly
nature followed by Government and welfare. There is no industrial used for that purpose. Survey reveals that 16,716 (76.3%) households
connection. (See figure 12). The survey results implies that MC use water bore to fulfill their water consumption needs followed by
Pattoki is majorly responsible for provision of water supply as a private tankers (3,321, 15.2%) and other sources such as filtration
municipal service to general public. plants, hand pumps, and canal (See figure. 13).

19
 Water Sale and Building Control Survey

Figure 14: Property Sizes (2024-25)

Property sizes:
0-3 Marla 8,040 (35%) Assessment of property size is an important factor which
can be considered while assessing improvement in potential
water supply revenue streams and imposition of water supply
3.1-5 Marla 10,322 (45%) tariffs. Therefore, analysis on property sizes was performed
and the results reveal that majority of the households (10,322,
45%) resides in the property sizes comprised of three to five
5.1-10 Marla 4,160 (18%)
Marla houses followed by up to three Marla (8,040 (35%) and
5 to 10 Marla (4,160, 18%).
10.1-15 Marla 301 (1%)
Survey results implies that majority of the population in the
city is middle class. Although households with property size
15.1-20 Marla 166 (0.7%) of above 10 Marla exist in the city, however, their number is
minimal and don’t represent large portion of the households
in the city.
20+ Marla 57 (0.2%)

Figure 15: Availability of water supply lines and Availability of water supply lines and
willingness for Govt. Connection (2024-25) willingness for Govt. Connection
Of the total households with alternative arrangements 12,895,
Water supply lines availability -12,895 (59%) 9,011 (41%) 59% of the households don’t have access to the water supply
lines. Lack of water supply infrastructure is a key challenge
in provision of water supply to citizen. Moreover, most of the
households (13,586, 62%) rely upon alternative arrangements
Willingness for Govt connection -13,586 (62%) 8,320 (38%) for water supply and they are not willing to take Government
water supply connection (See figure 15).
No Yes

20
 Water Sale and Building Control Survey

Figure 16: Water supply service condition and quality of active connections (FY 2024-25)

Water supply service quality Water supply condition

760 (67%)

657 (58%)

285 (25%)
234 (21%)
199 (17%)
147 (13%)

Good Fair Bad Clean Mixed Contaminated

Water supply service condition Water supply quality

Water service quality refers to how well a water supply system meets Households were investigated about the water quality in terms of safe,
the needs of users in terms of customer satisfaction. Perception clean, and reliable delivery of water in compliance with health and
about water service quality was fair among households with active safety standards. 25% (285) of the households stated that the water
water supply connection (67%, 760) rated fair. Only 21% (234) of the supply is contaminated and needs to purify. 58%, 657 perceived that
respondents believe service is bad followed by 13% who are in view water supply is somehow able for domestic use and only 17%, 199
that quality level is good (See figure 16). of the households stated that they are satisfy with the quality of the
water (See figure 16).

21
 Water Sale and Building Control Survey

Figure 17: Revenue Deficit (Milllion PKR) FY (2024-25) Revenue deficit

Present condition of water supply own source revenue is not satisfactory.
Revenue is in deficit for the FY 2024-25. The actual revenue is 1.7 Million
19.2 PKR and expenditures are 19.2 Million PKR. The MC Pattoki is not in
position to cover its expenditures with its current own source revenue.
4.0 1.7 Deficit The total deficit is 17.5 Million PKR which is around 91% (See, figure 17).
The results implies that there is not only need to recover water supply
Actual Actual tariffs but to implement a viable model of potential revenue surplus to
Revenue Expenditure enhance own source revenue. It is necessary for MC’s self sufficiency
to bear water supply expenditures without relying upon Government or
-17.5 (91%) external fundings. Therefore, there is need to come up with a viable source
of own source revenue which essentially covers up all expenditures.

Proposed models for potential revenue surplus

A revenue deficit in water supply services occurs when the income generated from water tariffs and other related sources is not sufficient to cover the operational
and maintenance costs of providing water. This deficit can lead to serious challenges for water utilities and the public. It often results in poor maintenance of
infrastructure, frequent service disruptions, and reduced water quality due to the lack of funds for treatment and distribution. Over time, the deficit may force local
governments to rely on subsidies or loans, which can strain public finances. Additionally, underpricing water discourages conservation and leads to wastage,
further deepening the problem. Addressing this issue requires better tariff structures, efficient billing systems, and investment in infrastructure to ensure long-term
sustainability and reliable service delivery.

Therefore, based upon the current condition of own source revenue, two potential model of revenues are proposed when implemented, result in revenue surplus.
Models are presented with varying levels of recovery to assess the level of revenue is generated by each model on a specific level of tariff recovery by the local
government. The models as as follows.

• Water tariff on domestic bores

• Water tariff on Marla categories

22
 Water Sale and Building Control Survey

Figure 18: Proposed model for potential revenue surplus: Water tariff on domestic bores (Million PKR) - FY 2024-25

Total potential revenue Expenditure

Actual revenue Expenditure recovered
Potential revenue Surplus

Expenditure
Expenditure recovered
17.3
Deficit
32.5
36.5

Actual revenue
Actual collected revenue 19.2 17.5 19.2 19.2

4 2.3 4
1.7 1.7
Revenue Deficit Proposed Revenue Surplus

Proposed model for potential revenue surplus: Water tariff on domestic bores
This model produces total proposed revenue of 36.5 Million PKR (See figure 18). The model proposed that tariff will be imposed on identified connections,
domestic and commercial bores, and sewerage connections on monthly basis and resulting tariff collection for 12 months will be added in actual present
revenue. The model will successfully covers water supply expenses with out any revenue deficit. The success of any model depends on the level of
recovery. This is the responsibility of the district and local governments to make sure 100% recovery is being made to ensure own source revenue surplus.
Moreover, its a viable solution to impose tariffs on domestic bores along with sewerage and identified connections. Without imposition of tariffs, revenue
streams will be in deficit and goal of self-sufficiency will not be attained. The breakdown of tariff calculation is given in table 02.

23
 Water Sale and Building Control Survey

Table 02: Potential revenue surplus (Pattoki): Water tariff on domestic bores (PKR) - FY 2024-25

Number Tariff (Rs/month) Duration (Months) Revenue

Connections Identified 23 300 12 82,800

Bore Connections (Domestic) 15,501 100 12 18,601,200

Bore Connections (Commercial) 1,215 500 12 7,290,000

Sewerage Connections 10,809 50 12 6,485,600

Potential Revenue 32,459,400

NOTE: All revenue streams are calculated on yearly basis (12 months) for both models

(II) Proposed model for potential revenue surplus: Water tariff on Marla categories
Second model proposed that except domestic bores, tariff should be imposed on all Marla sizes, sewerage and commercial bores along with identified
connection. The resulting tariff will be calculated on monthly basis and yearly revenue will be added in current revenue. This model provides revenue
surplus of 39.6 Million PKR. In this model, households will be charged tariffs on the basis of the size of the property. The household ara divided into 6
Marla categories. Success of the model depends on the recovery of tariffs, the more will be the recovery, the more will be the revenue. This not only the
responsibility of the local governments to collect the tariffs, but also the responsibility lies on the shoulders of the citizen as well to regularly pay utility bills
to make sure obligation on their part is fulfilled.

24
RAHIM YAR
KHAN
 Water Sale and Building Control Survey

Rahim Yar Khan City Profile: Rahim Yar Khan, located in Bahawalpur Division, is a key agricultural and industrial hub with a strong base in cotton
ginning, flour mills, and oil mills. Despite its economic significance, the city faces critical water supply challenges, including brackish groundwater, over-extraction
for irrigation, and contamination (notably arsenic). With only limited pockets of sweet water near canals, the majority of residents depend on tube wells and bores.
The water scarcity and quality issues affect both households and agriculture, increasing costs and risks for local communities.

Municipal Committee Rahim Yar Khan: Established under the Punjab Local Government Act (PLGA) 2013, MC RYK is mandated to provide
municipal services, including water supply, sanitation, solid waste management, and urban infrastructure development. A survey of 90,782 households revealed
that only 5% (4,748) have active water supply connections, while 95% (79,190) rely on alternative arrangements and 8% reported dead or closed connections. The
majority of connections (93%) are domestic, with a small share of commercial (6.5%) and other categories.

Water Supply – Service Gaps and Challenges: Water coverage in Rahim Yar Khan is only 6%, with average supply of 7 hours daily. The
reliance on alternative arrangements is significant, with households using water bores (42%) and private tankers (41%) as the main sources. Although 59% of
households with alternative arrangements lack access to supply lines, only 22% expressed unwillingness to take government connections, suggesting a demand-
side opportunity if service reliability improves. Service perception among active users is mixed: 67% rated it “fair,” 24% “poor,” and 9% “good.” In terms of quality,
78% reported mixed satisfaction, 17% considered it clean, while 5% regarded it as contaminated. These findings highlight infrastructure gaps, quality concerns,
and a lack of public trust in municipal services.

Provision of Water – Assessment & Revenue Potential: MC RYK’s water operations are fiscally unsustainable. In FY 2024–25, revenues
total 5.1 Million PKR against expenditures of 55.8 Million PKR, leaving a deficit of 50.7 Million PKR (93%). To overcome this gap and ensure self-sufficiency, two
models are proposed:
1. Tariff on Domestic Bores – imposing tariffs on domestic/commercial bores and sewerage connections could generate a surplus of 64.3 Million PKR.
2. Tariff on Property Size (Marla-Based) – charging households based on property size could generate a surplus of 120.6 Million PKR.

519,261 82,949 6.26 4,711 35

Population Households Household Size Registered Connections No of Turbines

25
 Water Sale and Building Control Survey

90,782 Household
Surveyed Figure 19: Active & Closed Connections & Figure 20: Reconciliation of D&C Register
Alternative Arrangements (FY 2024-25) and Household Survey (FY 2024-25)
4,748 (5%) Active
Connections
90,782
Active
Connections
86,034 (95%) Alternative
Arrangements (4,748, 05%) 4,748 4,711

Household Closed but have

Alternative
Surveyed
6,844 (08%) Dead/Closed
Connections
Arrangements
37
90,782
(6,844, 08%)
Alternative

17 (0.0%) Not in D&C Arrangements

Register (79,190, 87%)
Total Alternative Survey conducted Active Active New connections
Arrangements connections connections in identified
625 (0.7%) Commercial activities/
residential properties (86,034, 95%) D&C register

Active & closed connections & Reconciliation of D&C register and

alternative water supply arrangements household survey
Total number of water supply household survey conducted were Number of registered connections found in D&C register were 4,711.
90,782. Households with active water supply connections accounted These connections were verified and reconciled with the active
for 4,748, which are 05% of the total households surveyed. Dead or water supply connections identified in household survey. The results
closed water supply connections were 6,844, 08%, however, citizens indicate that 4,711 active water supply connections were reconciled
have arranged alternative sources to acquire water supply. Similarly, in both water supply D&C register and water supply household
households who don’t have water supply and relying upon alternative survey and 37 new connections found (See figure 20).
arrangements accounted for 86,034, 95% (See figure 19).

26
 Water Sale and Building Control Survey

Figure 21: Types of water supply connections Figure 22: Types of water supply alternative
(FY 2024-25) arrangements (FY 2024-25)
Domestic 4,639, 97.7% Bore 36,344 (42.2%)

Commercial 94, 2.0% Private Tankers 35,077 (41%)

Government 10, 0.2 Canal 8,079 (9.4%)

Industrial 3, 0.1% Filtration Plant 4,012 (4.7%)

Welfare 2, 0.0% Hand Pumps 2,522 (2.9%)

Types of water supply connections Types of water supply alternative

Of the total intact water supply connections 97.7% (4,639) are
arrangements
domestic and used by households for domestic purpose. This
Majority of the households in Rahim Yar Khan rely upon alternative
implies that most of the water supply is utilized for domestic use.
arrangements for water supply. A water bore is the most commonly
Similarly, 2.0% (94) connections are of commercial nature followed
used for that purpose. Survey reveals that 36,344 (42%) households
by Government, welfare, and industrial (See figure 21). The survey
use water bore to fulfill their water consumption needs followed by
results implies that MC Rahim Yar Khan is majorly responsible for
private tankers (35,077, 41%) and other sources such as filtration
provision of water supply as a municipal service to general public
plants, hand pumps, and canal (See figure 22).
(See figure 21)

27
 Water Sale and Building Control Survey

Figure 23: Property Sizes (FY 2024-25)

Property sizes:
0-3 Marla 25,989 (28.6%) Assessment of property size is an important factor which
can be considered while assessing improvement in potential
water supply revenue streams and imposition of water supply
3.1-5 Marla 44,221 (48.7%) tariffs. Therefore, analysis on property sizes was performed
and the results reveal that majority of the households (44,221,
48.7%) resides in the property sizes comprised of three to five
5.1-10 Marla 19,035 (20.9%)
Marla houses followed by up to three Marla 25,989, 28.6%
and 5 to 10 Marla (19,035, 20.9%).
10.1-15 Marla 1,037 (1.1%)
Survey results implies that majority of the population in the
city is middle class. Although households with property size
15.1-20 Marla 312 (0.3%) of above 10 Marla exist in the city, however, their number is
minimal and don’t represent large portion of the households
in the city (See figure 23).
20+ Marla 187 (0.2%)

Fig 24: Availability of water supply lines and Availability of water supply lines and
willingness for Govt. Connection (FY 2024-25) willingness for Govt. Connection
Of the total households with alternative arrangements 69%
Water supply lines availability
of the households don’t have access to the water supply
-59,414 (69%) 26,620 (31%)
lines. Lack of water supply infrastructure is a key challenge
in provision of water supply to citizen. Moreover, 22% of the
households rely upon alternative arrangements for water
Willingness for Govt connection -18,577 (22%) 67,457 (78%) supply and they are not willing to take Government water
supply connection (See figure 24).
No Yes

28
 Water Sale and Building Control Survey

Figure 25: Water supply service condition and quality of active connections (FY 2024-25)

Water supply service quality Water supply condition

3,704 (78%)

3,188 (67%)

1,124 (24%)
825 (17%)
436 (9%)
219 (5%)

Good Fair Bad Clean Mixed Contaminated

Water supply service condition Water supply quality

Water service quality refers to how well a water supply system meets Households were investigated about the water quality in terms of
the needs of users in terms of customer satisfaction. Perception about safe, clean, and reliable delivery of water in compliance with health
water service condition among households with active (4,748) water and safety standards. Majority of the households 78% (3,704) has
supply connection was fair (3,188, 67%) followed by those who rated mixed opinion about water supply service quality followed by those
bad (1,124,24%). Similarly, only 09% of the household stated that the who perceived water supply is clean (825, 17%). Moreover, 05% of
water supply service condition was good (See figure 25). the respondents considered water supply contaminated (See figure 25).

29
 Water Sale and Building Control Survey

Figure 26: Revenue Deficit (Million PKR) - FY 2024-25

55.8

Revenue deficit
Present condition of water supply own source revenue is not satisfactory.
17.0 Revenue is in deficit for the FY 2024-25. The actual revenue is 5.1 Million
5.1 PKR and expenditures are 55.8 Million PKR. The MC Rahim Yar Khan
Deficit
is not in position to cover its expenditures with its current own source
Actual
revenue. The total deficit is 50.7 Million PKR which is around 93% (See
Actual Actual
Revenue Revenue Collected Expenditure
figure 26). The results implies that there is not only need to recover
water supply tariffs but to implement a viable model of potential revenue
surplus to enhance own source revenue. It is necessary for MC’s self
sufficiency to bear water supply expenditures without relying upon
Government or external fundings. Therefore, there is need to come up
-50.7 (93%) with a viable source of own source revenue which essentially covers up
all expenditures.

Proposed models for potential revenue surplus

A revenue deficit in water supply services occurs when the income generated from water tariffs and other related sources is not sufficient to cover the operational
and maintenance costs of providing water. This deficit can lead to serious challenges for water utilities and the public. It often results in poor maintenance of
infrastructure, frequent service disruptions, and reduced water quality due to the lack of funds for treatment and distribution. Over time, the deficit may force local
governments to rely on subsidies or loans, which can strain public finances. Additionally, underpricing water discourages conservation and leads to wastage,
further deepening the problem. Addressing this issue requires better tariff structures, efficient billing systems, and investment in infrastructure to ensure long-term
sustainability and reliable service delivery.

Therefore, based upon the current condition of own source revenue, two potential model of revenues are proposed when implemented, result in revenue surplus.
Models are presented with varying levels of recovery to assess the level of revenue is generated by each model on a specific level of tariff recovery by the local
government. The models as follows.

• Water tariff on domestic bores

• Water tariff on Marla categories

30
 Water Sale and Building Control Survey

Figure 27: Proposed model for potential revenue surplus: Water tariff on domestic bores (Million PKR) FY 2024-25
Total potential revenue Expenditure
Actual revenue Expenditure recovered
Potential revenue Surplus

Expenditure
64.3
Expenditure recovered
Deficit
103.1
120.1

Actual revenue
Actual collected revenue
55.8 50.7 55.8 55.8

17 11.9 17
5.1 5.1
Revenue Deficit Proposed Revenue Surplus

Proposed model for potential revenue surplus: Water tariff on domestic bores
This model produces revenue surplus of 64.3 Million PKR (See figure 27). The model proposed that tariff will be imposed on identified connections,
domestic and commercial bores, and sewerage connections on monthly basis and resulting tariff collection for 12 months will be added in actual present
revenue. The model will successfully covers water supply expenses with out any revenue deficit. The success of any model depends on the level of
recovery. This is the responsibility of the district and local governments to make sure 100% recovery is being made to ensure own source revenue surplus.
Moreover, its a viable solution to impose tariffs on domestic bores along with sewerage and identified connections. Without imposition of tariffs, revenue
streams will be in deficit and goal of self-sufficiency will not be attained. The breakdown of tariff calculation is given in table 03.

31
 Water Sale and Building Control Survey

Table 03: Potential revenue surplus (Rahim Yar Khan): Water tariff on domestic bores (PKR) - FY 2024-25

Number Tariff (Rs/month) Duration (Months) Revenue

Connections Identified 17 300 12 61,200

Bore Connections (Domestic) 34,548 100 12 41,457,600

Bore Connections (Commercial) 1,796 500 12 10,776,000

Sewerage Connections 84,706 50 12 50,823,600

Potential Revenue 103,118,400

NOTE: All revenue streams are calculated on yearly basis (12 months) for both models

Proposed model for potential revenue surplus (Rahim Yar Khan): Water tariff on Marla
categories
Second model proposed that except domestic bores, tariff should be imposed on all Marla sizes, sewerage and commercial bores along with identified
connection. The resulting tariff will be calculated on monthly basis and yearly revenue will be added in current revenue. This model provides revenue
surplus of 120.6 Million PKR. In this model, households will be charged tariffs on the basis of the size of the property. The household ara divided into 6
Marla categories. Success of the model depends on the recovery of tariffs, the more will be the recovery, the more will be the revenue. This not only the
responsibility of the local governments to collect the tariffs, but also the responsibility lies on the shoulders of the citizen as well to regularly pay utility bills
to make sure obligation on their part is fulfilled.

32
DATA ANALYSIS
Building Control Survey
SAMBRIAL
 Water Sale and Building Control Survey

Sambrial City Profile: Sambrial (Sialkot District) sits along the Upper Chenab Canal and anchors a manufacturing corridor supporting Sialkot’s export
industries (sports goods, surgical instruments, leather). A dry port and a dense SME ecosystem drive land-use conversion pressure (residential, commercial) and
rapid construction activity; making robust building control a primary revenue and compliance lever.

Municipal Committee Sambrial (MC Sambrial): Constituted under PLGA 2013, MC Sambrial oversees building control, approvals,
land-use regulation, and urban services. A city-wide building control survey (Zones A–D) identified 24k buildings (8.8k residential; 15k commercial units/
shops). Approved map coverage is low: Residential 22% approved, 1% applied, 78% unapproved; Commercial 47% approved, a small applied pipeline, and 52%
unapproved. Land-use conformity is largely compliant (91% permitted, 9% permissible) with a small prohibited subset (36 buildings). Street canvassing covered
5,461 residential streets and 4,482 commercial streets (Lists A+B), indicating strong field verification.

Building Control – Compliance Gaps & Land-Use Status

• Large unapproved stock: The majority of residential plans remain unapproved; commercial compliance is better but still leaves a sizable unregulated base.
• Thin pipeline (few “applied” cases) signals friction in the approval process (forms, fees, or time-lines).
• Land-use pressures: Active commercial corridors create conversion risk (permissible uses) that must be priced and regulated.
• Data actions needed: Reconcile survey counts vs. registers; flag duplicates; link each property to a geo-referenced parcel and unique ID to prevent rework.

Assessment & Revenue Potential: The building control survey in Sambrial reveals a significant revenue opportunity of 993 Million PKR from
unapproved residential and commercial buildings, as well as conversion fees. Of this, approximately 249 Million PKR is attributable to unapproved residential
units, 689 Million PKR from commercial buildings, and 56 Million PKR through conversion charges. This potential represents a substantial avenue for enhancing
municipal own source revenue by legalizing existing stock, strengthening compliance, and institutionalizing fee recovery mechanisms to finance essential urban
services sustainably.

119,571 19,731 6.06 21,000 8,878

Population Households Household Size Est. Total Buildings Approved Buildings

33
 Water Sale and Building Control Survey

Buildings Identified Approved Map Status Applied Map Status Unapproved Map Status

23,997 8,878 154 14,700

Residential: 8,761 Residential: 1,835 Residential: 85 Residential: 6,841
Commercial/Shops: 14,971 Commercial/Shops: 7,043 Commercial/Shops: 69 Commercial/Shops: 7,859
Others: 265 Other Buildings: 48 Other Buildings: 4 Other Buildings: 213

SURVEYS
CONDUCTED Figure 28: Commercial and residential
City was divided in four zones to conduct
Zone A streets visited (FY 2024-25) building control survey. The zones were
10,511 classified into A, B, C, and D zones. Total of
23,997 buildings were identified during building
Building surveyed
control survey. 8,761 were residential buildings,
whereas, 14,971 building were commercial
Zone B and 265 were in other categories. Similarly,
17,259, 72%
approved maps status shows that only 1,835
3,205 residential buildings have approved maps and
Building surveyed commercial buildings/shops with approved
maps account for 7043. Only 85 residential
and 69 commercial buildings were applied for
Zone C maps. Total unapproved buildings in the city
5,461, 23% were 14,700 which is a huge number.
6,828 Moreover, both commercial and residential
Building surveyed 1,277, 5% streets adjustment to both residential and
commercial buildings were visited. Total of 5,461
residential streets visited. Commercial streets
Zone D in list A were 1, 277 whereas list B accounts for
3,453 Commercial Streets Commercial Streets Residential Streets
17,259 streets (See figure 28)
Building surveyed (List A) (List B)

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 Water Sale and Building Control Survey

Permitted Use: The land use which is allowed in each land use
Figure 29: Residential building Figure 30: Commercial building/ class under the rules
map status (FY 2024-25) Shops map status (FY 2024-25) Permissible Use: The land use, though not permitted, may be
allowed by the planning and design committee, subject to the
Unapproved Applied Approved Unapproved Applied Approved payment of the fee
6,841 (78.08%) 85 (0.97%) 1,835 (20.95%) 7,859 (52.5%) 69 (0.5%) 7,043 (47.0%)
Prohibited Use: The land use which is neither permitted nor
permissible
Reference: Punjab Land Rule Use (2020)

Fig. 31: Building legal status (FY 2024-25)

Permitted 21855, 91.07%

Residential Commercial
Buildings Buildings/Shops

8,761 14,971 Permissible 2107, 8.78%

Prohibited 36, 0.15%

Map status of residential and commercial buildings and legal status

Large number of both residential and commercial building plans are unapproved. Out of 8,761 residential building, 78% (6,841) are unapproved. Only
20.59% (1,835) buildings were legally approved and 85 buildings were applied for the approval of maps (See figure 29). Similar results were found
for commercial buildings. Out of 14,971 commercial buildings, approved buildings were 7,043 (47%), whereas, 52% of the buildings were unapproved
and require approval of building plans. Moreover, Only 69 commercial buildings were applied for the approval. Hence, there is need to legalized the
status of buildings with approval of both residential and commercial building plans (See, Fig 30). Moreover, 91.07% of the buildings were permitted
for residential and commercial activities and 8.78% were declared permissible. Only 36 buildings were declared prohibited for any residential or
commercial activity (See, figure 31).

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Figure 32: Potential revenue (Million PKR) - FY 2024-25 Table 04: Potential Revenue (PKR) - FY 2024-25

Unapproved
Number Formula Revenue
Buildings
Conversion fee 55.9
Covered Area in Sqft *
Residential 6,841 249,081,394
Per Sqft fee (Res.)
Domestic revenue 249.1
Covered Area in Sqft *
Commercial 7,859 688,642,853
Per Sqft fee (Com.)
Commercial revenue 688.6
DC Rate Per Marla *
Conversion fee 155 55,891,900
Building Size * 10%
Total 993.6

Potential Revenue 993,616,147

Potential revenue
Municipal Committees are responsible for approving building plans within their local areas. This involves reviewing submitted plans to ensure they
comply with local building bylaws and regulations. Building plan approval within a Municipal Committee’s jurisdiction contributes to the committee’s
“own source revenue” through fees and charges associated with the approval process. This revenue helps fund various municipal services and
development projects within the area. Potential revenue from unapproved residential and commercial buildings and conversion fee is accounted for
993 Million PKR. Commercial revenue is high as 689 Million PKR. Whereas, residential revenue is 249 Million PKR (See figure 32). The calculation for
both residential and commercial revenue is provided in Table 04.

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RECOMMENDATIONS
 Water Sale and Building Control Survey

Recommendations for Strengthening Municipal Water Supply and Building Control and Land
Use Conversion
1. Water supply and sale:
Actionable Recommendations
• Conduct a comprehensive audit of all water turbines, including energy efficiency and maintenance costs.
• Install water meters across households and commercial units to control wastage and improve billing accuracy.
• Digitize records and introduce e-billing and e-payment platforms to improve transparency and recovery.
• Introduce sanitation fees for all households and commercial units to expand revenue streams.
• Institutionalize quarterly water quality testing with strict monitoring and transparent reporting.
• Strengthen HR capacity in MC water wings with staffing norms, specialized training (metering, billing, maintenance), and performance
incentives tied to recovery.

2. Building Control, Plans, and Conversion Fees

Actionable Recommendations
• Undertake comprehensive mapping of all residential and commercial buildings to regularize unapproved structures with penalties or compliance
pathways.
• Launch a digital one-window building control system for online applications, automated scrutiny, e-payments, and transparent timelines.
• Integrate approvals with utility service connections (water, electricity, gas) to enforce compliance.
• Introduce geo-tagged building registries for real-time monitoring of urban expansion.
• Carry out risk-based inspections, prioritizing high-value corridors and multi-storey buildings, with NOCs contingent on fee clearance.
• Revise conversion policies to capture revenue from land-use changes (residential, commercial, FAR/height increases), indexed to location bands.
• Build MC staff Capacity in urban planning, GIS tools, and enforcement, supported by partnerships with planning schools and donor agencies.

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 Water Sale and Building Control Survey

Cross-Cutting and Governance Reforms

Institutional Strengthening

• Institutionalize the survey methodology as a recurring exercise to update baselines for water and building revenue.
• Develop a provincial OSR dashboard for real-time performance tracking across water, construction, and conversion fee revenue streams.
• Strengthen the role of District Planning & Design Committees (DPDCs) to monitor and fast-track building approvals.

Citizen Engagement & Donor Support

• Systematically engage citizens to build trust and willingness to pay through awareness campaigns, feedback platforms, and grievance redressal
mechanisms.
• Encourage donor investments in critical gaps such as water metering, infrastructure rehabilitation, and digital building control systems.
• Promote knowledge exchange with international models:

This combined framework ensures that policy reform, operational action, institutional strengthening, and citizen engagement are aligned. It
provides a road-map for MCs to not only mobilize own source revenues (OSR) but also to improve service delivery, transparency, and urban resilience.

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