This study compares the Indian Lunacy Act (ILA) 1912 with the Mental Health Ordinance (MHO) 2001 to demonstrate the (dis)continuity of colonial practices in the context of postcolonial Pakistan. This analysis is informed by Foucauldian power/knowledge nexus making a unique contribution to the broader field of mental health policy. The discursive continuity of the colonial legacy involving the legal structures in the mental health system, where the state uses psychiatric knowledge to legitimize the detention of individuals, echoes the Foucauldian concept of the power/knowledge nexus. Scrutinizing the words used in both legislations, it has been understood that language is not neutral; rather it is suffused with meaning, creating knowledge and truths. This is seen through the offensive words used in the ILA 1912 that denote degradation, disdain, and contempt toward the “insane,” “dangerous,” and “lunatics.” Although MHO 2001 adopted a more neutral language, a continuation of the mechanism of control is seen during the admitting process, in which the opinions and statements of medical professionals play an important role. The marginalization of alternative mental health practices, in the form of indigenous and communal mental health practices in both mental health legislations, showcases the dominance of the biomedical model, enforcing a particular form of epistemic control. Nonetheless, the relative improvement of the MHO 2001, as opposed to the ILA 1912, has been seen in terms of the language used and the inclusion of community‐based mental health services.