Study highlights gaps in local govts’ financing

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Islamabad - Local governments in Pakistan are experiencing critical constitutional, financial, and administrative gaps that hinder effective local governance and there is a dire need to promote greater financial and administrative transparency at this governance level, shows a study launched here on Wednesday.

Islamabad - Local governments in Pakistan are experiencing critical constitutional, financial, and administrative gaps that hinder effective local governance and there is a dire need to promote greater financial and administrative transparency at this governance level, shows a study launched here on Wednesday. Awaz CDS-Pakistan in collaboration with UGOOD under its ongoing initiative “Strengthening Local Governments to Promote Democracy in Pakistan (SLGPD),” officially launched this pivotal study. The study findings reflect a stark reality despite constitutional commitments under Article 140A, local governments remain financially disempowered, administratively constrained, and politically marginalized.

The study launch event, held in collaboration with Pakistan Development Alliance, UGOOD and its member organizations, brought together a diverse group of 25 stakeholders including members of Parliament, political parties, civil society organizations, local government representatives, media representatives, bar councils, person with disabilities, youth, transgender and representative from academia. LESCO chief hints at ‘Apna Meter, Apni Reading’ Programme Formally sharing the findings of the study, Zia-ur-Rehman, Chief Executive of AwazCDS-Pakistan, said that the evidence clearly shows that without constitutional protection, fiscal decentralization remains ad hoc and politically driven. This study calls for systemic reforms to ensure local governments are treated not as administrative outposts, but as the third tier of government.



The study found several major problems that are weakening local governments in Pakistan. Unlike the federal and provincial governments, local governments do not have clear protection in the Constitution, and there are no detailed rules about how their budgets should be handled. As a result, the funds given to local governments are often decided without any proper system or fairness, he said.

Speaking on the occasion, Syed Ishtiaq Gilani, CEO of UGOOD, said that the findings of this study are not only timely, but also essential for reclaiming local democracy in Pakistan. Civil society, alongside political actors, must work together to ensure that local governments are empowered with resources and recognition. KP CM to open high-tech food testing lab soon: Minister Dr Raheem Awan, President Law Wing PMLQ, emphasized the importance of institutionalizing timely elections and functionality of local government systems, rather than fixating on nomenclature or administrative semantics.

In his remarks, Zafar Ullah Khan, Convener, Parliamentary Research Group, noted that in Pakistan’s current federal structure, residual powers largely rest with the federal government, unlike in federal democracies such as Germany and the United States, where these powers are devolved to the provinces (or states). The event also facilitated a constructive dialogue among stakeholders and gathered recommendations to inform the upcoming White Paper on Local Government Performance. AwazCDS-Pakistan, UGOOD, and the Pakistan Development Alliance reaffirmed their dedication to working jointly with parliamentarians, CSOs, and communities to promote constitutional, political, and financial reforms that uplift local governance in Pakistan.

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