BCPR report urges stronger constitutional safeguards, end to lawmakers’ parallel development funds
KARACHI:
A task force on local governance on Wednesday called for constitutionally guaranteed funding, directly elected mayors and stronger safeguards for local councils, warning that provincial political and bureaucratic control has undermined devolution of power in Pakistan.
The report, prepared by the Task Force on Reforms in Local Governance in Pakistan, recommends allocating local governments a protected share of public resources, granting them greater control over revenue and abolishing or repurposing development funds administered by national and provincial lawmakers.
Convened by the BNU Centre for Policy Research (BCPR) in partnership with the Sanober Institute, the task force held deliberations between January and June this year.
It said no province had consistently fulfilled Article 140-A’s constitutional requirement to devolve political, administrative and financial authority to elected local governments. Legislators and provincial administrations, it added, were reluctant to surrender control over development spending, personnel and public services.
The report attributed the weakness of local government to a “zero-sum mentality”, with parallel administrative structures, delayed elections and the appointment of administrators preventing elected councils from developing institutional continuity.
Guaranteed funding, local revenue
The task force proposed a constitutionally protected allocation of 30–40% of “the divisible pool”, although the report does not clearly specify the pool against which the percentage would be calculated. It recommended releasing the allocation as a single grant at the beginning of each financial year.
Citing a World Bank report, it said local governments’ share of total government spending had declined from around 10% in 2005 to approximately 4.7% in 2024. In Punjab, local government officials reportedly said salaries consumed about 80% of funds received, leaving little for development.
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The report called for transparent Provincial Finance Commissions (PFCs), with allocations based on population, revenue generation and need, rather than executive discretion.
It also recommended allowing local governments to assess, collect and retain property tax, capital gains tax on urban land, agricultural cess and local user charges.
Among its key proposals was ending separate development-fund channels administered by members of the national and provincial assemblies. “These funds should either be abolished or strictly repurposed to strengthen local governments,” it said, arguing that parallel spending undermined elected councils’ authority and accountability.
Punjab law draws criticism
The report criticised the Punjab Local Government Act 2025 for retaining provincial executive control over elected councils.
It argued that rejecting secret ballots for councils above the union council tier conflicted with Article 226 of the Constitution. It also opposed indirect elections for mayors and deputy mayors and highlighted the absence of guaranteed fiscal allocations.
Sections 21 and 76 were identified as provisions reinforcing provincial control. The report also pointed to more than 50 provincially controlled companies and authorities performing urban functions, including water supply, waste management, transport and development.
In Sindh, it identified provincial appointees’ effective veto over development plans proposed by elected councillors. In Khyber-Pakhtunkhwa, it cited the reversal of an earlier commitment to channel development spending through local governments. Balochistan faced additional challenges from geographic dispersion, limited administrative capacity and a narrow revenue base.
Direct elections, control over services
The task force recommended directly elected mayors and chairpersons, alongside clear rules and judicial review for suspending or superseding elected councils.
It proposed metropolitan corporations in major cities, headed by directly elected mayors with authority over development agencies, water and sanitation bodies, mass transit and industrial estate development institutions. Rural districts would have elected chairpersons responsible for services including rural roads and coordination of agricultural extension.
Local governments should primarily oversee education up to matriculation, primary and secondary healthcare, water supply, sewerage, solid waste management, local roads and community welfare. Provinces would retain responsibility for tertiary healthcare, higher education, inter-district infrastructure and policy coordination.
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The report stressed that transferring functions without staff and budgets would render devolution ineffective. It proposed placing civil servants in Grade 16 and below in devolved departments under local government control, along with their salaries and allowances.
District accounts officers should report administratively to elected local chief executives while remaining under the professional supervision of provincial accountant generals. Performance monitoring and Auditor General audits would strengthen accountability.
Constitutional safeguards
The report proposed expanding Article 140-A through a constitutional schedule defining local government responsibilities, including education, healthcare and municipal services.
It also recommended amending Article 160 to establish a timetable and methodology for PFCs comparable to the National Finance Commission, giving local governments predictable funding. Articles 7 and 226 should be reviewed to strengthen the constitutional standing and enforceability of local government elections.
A model legislative framework developed through the Council of Common Interests should establish minimum standards while clarifying the responsibilities of union, tehsil or town, and district bodies.
The task force called for merit-based recruitment, professional training for officials and elected representatives, and the online publication of budgets, development plans and performance indicators.
It proposed immediate constitutional, fiscal and electoral changes, followed by legislative and institutional reforms within one to two years and revenue and civil service measures over two to four years.
Local reform before new provinces
On demands for new provinces, the report argued that smaller administrative units and stronger local governments were compatible, but local reform should take precedence while broader political consensus remained elusive.
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Its comparison of the United States, Germany, India, Brazil and China identified predictable financing, control over local revenue and sustained accountability as essential to effective governance.
The task force was chaired by BNU Vice Chancellor Dr Moeed Wasim Yusuf, with Sanober Institute Chairman Aizaz Ahmad Chaudhry as co-chair and BCPR Director Mansoor Ahmad Khan as convener. Members included former federal ministers Khurram Dastagir Khan and Shafqat Mehmood, alongside legal experts, researchers and civil society representatives.
The report concluded that meaningful devolution required municipal institutions capable of delivering everyday services, from functioning schools and staffed hospitals to timely road repairs.
