Restoring Local Government in Islamabad and Its Impact

Journalists and civil society demand restoration of local government system in Islamabad, calling for the immediate implementation of Islamabad High Court’s decision transferring responsibilities from CDA to MCI. They assert that effective local governance could address 80 percent of public issues in the capital.
Addressing a press conference at the National Press Club, representatives of the Pakistan Federal Union of Journalists (PFUJ) and various civil society organisations released a white paper highlighting governance failures due to the prolonged absence of elected local bodies in Islamabad. Since February 2021, local residents of the city have been effectively denied their constitutional right to local democratic representation. Speakers, including PFUJ President Afzal Butt, Pakistan Development Alliance (PDA) CEO Zia-ur-Rehman, UGOOD CEO Syed Ishtiaq Gilani, National Press Club President Azhar Jatoi, and Rawalpindi Islamabad Union of Journalists (RIUJ) President Tariq Ali Virk, stressed the urgent need to restore local governance mechanisms immediately.
According to PFUJ President Afzal Butt, approximately 80 percent of public issues could be effectively resolved through the proper implementation of an empowered local government system. However, elites within the federal bureaucracy remain reluctant to hold timely local body elections, primarily to retain control over funds allocated to Islamabad. Each year, roughly six billion rupees are earmarked for Islamabad’s municipal institutions, but in the absence of elected local governance, this amount is channelled through the Ministry of Interior and the Capital Development Authority (CDA) to finance favoured projects rather than benefit local communities directly.
Participants at the conference emphasised swift implementation of the Islamabad High Court (IHC) ruling mandating the immediate dissolution of CDA’s municipal authority and its transfer—along with all relevant assets, personnel and responsibilities—to the Metropolitan Corporation Islamabad (MCI). Despite this landmark decision, execution remains stalled due to a pending appeal, causing a prolonged delay that significantly undermines local democratic functions and municipal service delivery.
The white paper presented at the event details the structural, financial and legal impediments obstructing effective local governance. It particularly points out the overreach of unelected federal bodies, which currently control municipal functions critical for everyday life in the capital. The document further reveals concerns over budgetary practices, highlighting allocations for the fiscal years 2024-25 and 2025-26. Nearly six billion rupees per annum were allocated indirectly through CDA and the Ministry of Interior without the direct financial empowerment of MCI, reflecting a systematic marginalisation of elected local council structures.
To address institutional shortcomings, speakers urged the immediate legislative and administrative reforms. They recommended amending the Islamabad Capital Territory Local Government Act 2015, establishing a formula-based financial transfer system akin to a Provincial Finance Commission (PFC) for Islamabad, ensuring administrative autonomy, enforcing fixed timelines for elections, and strengthening participatory oversight mechanisms.
Moreover, the group demanded an end to parallel implementation structures, urging federal ministries and CDA to cease initiating local development projects without prior consultation and approval from MCI. They further called for empowering the Metropolitan Corporation Islamabad with revenue-generating capabilities, enabling it to independently collect property taxes and other municipal charges, ultimately establishing financial self-sufficiency for the city’s elected local bodies.



