Which statement correctly describes the borrowing powers of local bodies?

State of Local Govt MCQs for PPSC, FPSC, NTS, and Pakistan government job tests. Select an option below, then read the explanation.

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Subject
State of Local Govtpolitical-science-mcqs › state-of-local-govt
Published
11 Apr 2023
Last updated
28 May 2026

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Explanation

Local bodies do not have unrestricted borrowing powers. They can only raise loans if they have obtained prior permission from the state government, ensuring oversight and control over their financial activities.

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