Pakistan stands at a pivotal moment in its political and economic trajectory, where strengthening local governance is more critical than ever.
LOCAL FINANCE
Pakistan stands at a pivotal moment in its political and economic trajectory, where strengthening local governance is more critical than ever.
Although the constitution, especially through Article 140A, mandates the establishment of independent and financially empowered local governments, the reality frequently falls short of this ideal. Local governments continue to rely heavily on provincial authorities for financial resources, limiting their capacity to address community-specific needs effectively.
To fulfill the constitutional mandate, the establishment of District Finance Commissions (DFCs) is essential. These commissions would provide a structured framework for financial autonomy at the district level, allowing local governments to manage their resources and responsibilities more effectively.
The 18th Amendment and Article 140A of the constitution were intended to empower local governments, but true financial autonomy has yet to be realised. Although local bodies were granted certain administrative powers, their financial strength remains weak, preventing them from fully delivering on their mandates. Creating DFCs would ensure that financial resources are allocated directly to districts, empowering local governments to plan, implement, and manage essential services in alignment with local needs. This decentralised approach would bring governance closer to the people, embodying the constitutional promise of local empowerment and improving service delivery through more localized control.
District Finance Commissions would function as independent bodies tasked with assessing, allocating, and overseeing financial resources for districts. This structure would promote equitable resource distribution based on demographic and developmental factors, ensuring that districts with varied population sizes and economic challenges receive the support they need.
By receiving direct funding allocations, local governments could focus on targeted solutions for critical areas such as education, healthcare, infrastructure, and economic development. Drawing on international models like India’s Panchayati Raj and South Africa’s Local Government Equitable Share, Pakistan can adopt tested strategies to fortify local governance and enhance service delivery outcomes.
The empowerment of local governments has long been a staple of political manifestos across Pakistan. However, these commitments frequently remain unfulfilled, largely due to a persistent lack of financial autonomy. The introduction of DFCs would align with promises made by political parties over the years, offering a concrete solution to the challenge of decentralisation. Supporting the creation of DFCs would not only bolster the credibility of political parties but also widen their support base, especially in rural areas where citizens would directly benefit from strengthened local governance.
Advocating for DFCs signals a meaningful commitment to reinforcing democratic principles and addressing local needs. Political parties that champion this cause stand to strengthen their democratic credentials while deepening engagement with voters, and fostering stronger connections with local communities. It is an opportunity to move beyond rhetoric and demonstrate a tangible dedication to enhancing Pakistan’s citizens’ lives.
Establishing DFCs is not merely a governance reform; it is a strategic initiative aimed at fostering balanced economic development across regions. By enabling districts to retain and manage their financial resources, the government can promote equitable growth, diminish regional disparities, and address localised economic challenges more effectively. This financial autonomy would allow districts to fund projects tailored to their unique needs, from agriculture to tourism, contributing to regional economic resilience.
DFCs could also play a significant role in poverty reduction by channeling resources into essential sectors like education, healthcare, and infrastructure. With greater control over funds, local governments could make faster, more responsive decisions, resulting in the more efficient use of resources and ultimately improving citizens’ quality of life. Financial autonomy at the district level would lead to quicker decision-making, directly addressing pressing community needs and supporting sustainable development.
The establishment of District Finance Commissions is a critical step toward realising the constitutional vision for local governance. Financially empowering local governments would pave the way for a more democratic, accountable, and responsive system that serves all citizens equitably. Political leaders, policymakers, and civil society must rally in support of this initiative, recognising that it is not merely a policy adjustment but a commitment to creating stronger, more sustainable local governments.
By embracing the DFC model, Pakistan can ensure that all districts, regardless of their size or economic capacity, have the resources necessary to flourish. This is a prime opportunity to align governance with the principles of decentralisation and bring lasting, meaningful change to communities throughout the country.
Supporting DFCs would not only uphold the constitutional directive for local empowerment but also foster a future where every district, village, and community has the financial means to address its unique challenges and aspirations effectively.
Supporting DFCs would not only uphold the constitutional directive for local empowerment but also foster a future where every district, village, and community has the financial means to address its unique challenges and aspirations effectively
The writer is a researcher associated with the Sustainable Development Policy Institute (SDPI), Islamabad.
