Islamabad - Fate of as many as 111 District/City governments in the country hangs in balance in the wake of serious differences between the federation and the federating units - Punjab, Sindh, NWFP and Balochistan. Well-placed sources told TheNation on Wednesday that the federal government headed by Prime Minister Syed Yousaf Raza Gilani wants to continue with the same system while the provinces were seeking restoration of pre-2001 Local Bodies System. The differences between the federation and the provinces had come to the fore when the federal government tried to evolve consensus on one-point agenda seeking to continue with the Local Government Ordinance promulgated on August 14, 2001. The federal government is trying to continue with District/City governments envisaged under the Local Government Ordinance 2001 with minor modifications, a senior government official said, adding it all depends on the next meeting between the federation and the provinces slated for June 12. Parliamentary sources privy to these developments were of the view that the federal government was just trying to gain time by engaging the provinces to seek modifications in the existing system on one hand while on the other was trying to let the Schedule 6 of the Constitution expire on December 31, 2009. Sources said that the move is aimed at seeking proposals from the provinces for modifications in the existing law and to prepare for appointing Administrators ahead of new elections after four-year term of the incumbent elected office- bearers of the District/ City governments comes to end on October 17, 2009. Sources also noted with deep concern that President Asif Ali Zardari, who is also Co-Chairman of the ruling PPP can torpedo any move relating to future of the District/City governments in line with his powers enshrined in the Schedule Six of the 1973 Constitution. Being PPP Co-Chairman, President Zardari would certainly seek to drive maximum leverage for his party in the future set-up of the District/City governments, a senior politician said, adding that the PPP, while being in power, would naturally be one of the major beneficiaries of any decision relating to future of the District/City governments. Some sources opined that the federal government would by and large follow the existing laws relating to the Local Governments by reverting back to the matter to the provinces as provincial subject and by making the LGs system a little cohesive. Other changes that could be incorporated in the existing LGs system were to strip of the District/ City Nazims of powers to control the police. This has emerged as consensus demands of the four provinces, a senior government official privy to these developments said, adding the federal government may also restore commissioner system to regulate price control mechanism in the respective districts/cities. The official also hinted that the Federal was also actively considering changes in the existing LGs laws to strip off the District/City Nazims of powers to collect revenue, which again was either provincial or federal subject.