RMC hikes shop rents after three decades

Allottees had sublet shops for over 1,000% they were paying the corporation

RAWALPINDI:

The metropolitan corporation of the garrison city has increased the rent of its shops located on prime commercial real estate by almost 150 per cent. According to official documents, Rawalpindi Metropolitan Corporation (RMC) has extended the lease of some 1,800 shops after increasing rents.

The small shops were leased to allottees for Rs100 to Rs300 during the tenure of military dictator Gen Ziaul Haq in 1980s as a political bribe to people nominated by particular politicians of the city.

The paltry sum of Rs100 and Rs300 was increased by only 10 per per year allowing traders to earn windfall profits. The annual rent collection from the RMC-owned shops would now be Rs150 million instead of earlier Rs50 million. RMC, as an institution, owns shops in different markets including National Market, Ganjmandi, Bani Market, Ghazni Market and other such commercial areas.

The corporation had leased out these shops for paltry sum of Rs100 to Rs300 monthly. However, the allottees had sublet these prime location shops for 1,000 per cent more than what they paid to RMC.