Rethinking Urban Governance: The Case for Democratic Decentralisation in Pakistan

Islamabad was conceived as Pakistan’s federal capital. Yet the city it was designed to govern has changed profoundly. What was once a purpose-built administrative centre has evolved into a metropolitan area of more than two million residents, with increasingly complex demands for transport, housing, water, sanitation, environmental protection, digital services and urban development. The question facing Islamabad today is therefore not whether it needs more administration, but whether its governance institutions have kept pace with the city’s transformation.

The case for reform is ultimately a case for democratic decentralisation, institutional clarity and accountable urban governance.

Islamabad’s existing governance structure reflects its unique status as the federal capital, but this arrangement can also produce fragmented responsibilities. Multiple federal ministries, authorities and agencies have roles in areas that directly affect everyday urban life. When responsibility is dispersed, accountability can become equally dispersed. A resident experiencing poor waste management, inadequate transport or delays in urban services should not have to determine which of several institutions is ultimately responsible.

A modern metropolitan government could address this problem by creating a clear chain of democratic accountability.

The federal government has national responsibilities that are inseparable from Islamabad’s status as the capital: defence, foreign affairs, national security, federal legislation, Parliament, diplomatic missions and other strategic functions. These responsibilities should remain firmly with the federation. But the existence of these national functions does not require the federal government to administer every municipal aspect of a city of more than two million people.

This is where meaningful devolution becomes important.

An empowered Islamabad Capital Territory Government could assume responsibility for devolved urban and social services while preserving the capital’s distinctive constitutional position. Such a government could include a directly elected ICT Assembly, an empowered Chief Minister or Mayor, an accountable executive and professional departments with clearly defined responsibilities.

The objective would not be to turn Islamabad into an ordinary province. Rather, it would be to establish a distinct Federal Capital Territory governance model suited to the city’s national importance and metropolitan realities.

The principle is straightforward: national functions should remain national, while local functions should be governed locally.

Such a division could significantly strengthen administrative efficiency. If the ICT government were responsible for municipal services, it would also need the administrative and financial authority required to deliver them. Political devolution without administrative capacity would merely create another layer of government. Genuine decentralisation therefore requires authority over departments, personnel, planning institutions and budgets.

Fiscal responsibility would be equally important. An empowered ICT government could operate with clearly defined local revenue sources, including appropriate property-related taxation, municipal charges, development fees, parking revenues and other lawful local revenues, alongside constitutionally and legally defined federal transfers. This would create a stronger connection between taxation, public spending and citizen accountability.

Islamabad particularly requires this integrated approach because its urban challenges are interconnected. Transport cannot be separated from housing. Housing cannot be separated from land-use planning. Water and sanitation are connected to urban expansion. Environmental protection is inseparable from development decisions.

A metropolitan government could therefore develop a 10–20-year integrated development strategy with measurable targets for transport, housing, water security, sanitation, waste management, economic development and environmental sustainability.

Environmental governance deserves particular attention. Islamabad’s identity is closely associated with its forests, hills, parks and green spaces. Rapid urbanisation makes the protection of these assets increasingly important. An elected ICT government with clear statutory responsibilities could make environmental sustainability a central component of metropolitan planning rather than treating it as an issue divided among multiple institutions.

Transport provides another compelling example. A coherent metropolitan transport system requires roads, mass transit, parking, traffic management and land-use planning to operate within a common framework. Fragmented decision-making can make it difficult to develop the integrated mobility system expected of a modern capital city.

The same principle applies to water, sanitation and waste management. These are not abstract administrative responsibilities; they are services citizens experience every day. Their performance should therefore be measured through transparent indicators, publicly available information and clearly identifiable political responsibility.

Islamabad could also become a national laboratory for digital governance. Its concentration of universities, technology companies, federal institutions and skilled professionals creates favourable conditions for expanding online government services, digital taxation, e-approvals, transparent procurement and real-time monitoring of public services. A digitally enabled ICT government could demonstrate how technology can make public administration more accessible and accountable.

Importantly, institutional reform in Islamabad should not be understood as weakening Pakistan’s federation. The opposite may be true. A clearer division of responsibilities could allow federal institutions to concentrate on national governance while enabling local institutions to concentrate on the everyday needs of residents.

This is also consistent with the broader principle of decentralisation. Effective governance does not necessarily mean concentrating more authority at the centre. It means placing decisions at the level where they can be made most effectively while maintaining national standards and constitutional safeguards.

The contemporary policy debate makes the issue particularly relevant. The Planning Commission’s 2026 proposal for an elected Islamabad Capital Territory Assembly and locally accountable executive indicates that the question of institutional reform is no longer merely theoretical. It reflects a growing recognition that Islamabad’s governance arrangements need to respond to the realities of a rapidly evolving metropolitan population.

The larger significance extends beyond Islamabad itself. Pakistan’s major cities are becoming increasingly important centres of population, economic activity and innovation. Islamabad could therefore become a national demonstration of how metropolitan governance can combine democratic representation, administrative efficiency, fiscal responsibility, environmental sustainability and digital public administration.

Ultimately, the question is one of democratic accountability.

Residents should be able to identify the institution responsible for the quality of the services they receive. They should be able to elect representatives, evaluate performance, influence development priorities and hold decision-makers accountable.

Islamabad has evolved from a federal capital into a complex metropolitan community. Its governance must evolve accordingly.

The capital of Pakistan should not merely house a government. It should also be governed, in its everyday affairs, by institutions that are genuinely accountable to the people who live there.