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Multan Development Authority was derived from the Multan Improvement Trust (MIT), which was established in 1944 under Punjab Town Improvement Act, 1922.
The main concerns of MDA was to develop policies and planning involving to introduction of new housing schemes for the development of the city in order to make it more managed city.
MDA launched large number of development schemes particularly in housing zone. Among these schemes are Shah Rukne Alam I&II, Lodhi Colony, New Qasimpur Colony, Tughlaq Town and New shah shams housing scheme.