The Punjab Assembly has questioned why Lahore Gymkhana Club pays only Rs5,000 annually to use more than 100 acres of valuable government land in Lahore. The land, located along The Mall, has an estimated value of up to Rs218 billion, according to figures presented during the inquiry.
During a meeting of Special Committee No. 6 on October 21, members asked government officials to explain how the rent was set and whether the lease followed proper legal procedures. The club’s lease was renewed in 1996 for another 50 years, starting in 2000.
Lahore Gymkhana Chairman Salman Siddique acknowledged that the current rent was too low. He reportedly said the club should pay at least Rs10 million per year, considering its present financial position.
The committee has asked the Board of Revenue and other departments to provide the original lease documents, approval records and details of the land’s valuation. Members also raised concerns about building approvals, financial oversight and whether the public receives sufficient benefit from the use of state-owned property.
The inquiry aims to establish how the arrangement was approved and whether the rent should be revised. No final decision on changing the lease or recovering the land has been announced.
