Pakistan stands at a crucial point in its political and economic development. Strengthening its local governments is a more pressing need today than ever before. Article 140A of the constitution mandates independent and financially empowered local governments; the reality often falls short of this ideal.

Local governments continue to depend on provincial authorities for financial resources, limiting their ability to address local needs effectively. To fulfill the constitutional promise, the establishment of district finance commissions is essential.

These commissions will provide a framework for financial autonomy at the district level, enabling local governments to manage their resources and responsibilities more effectively.

The 18th Amendment and Article 140A of the constitution were meant to empower local governments. However, financial autonomy has not been fully realised. While local bodies were granted administrative powers, their financial capacity remains weak. This prevents them from fulfilling their mandates.

The creation of DFCs will ensure that financial resources are distributed directly to districts, allowing local governments to plan, execute and manage essential services in line with local needs. This decentralised approach will enable more effective governance and bring the constitutional promise of local empowerment into practice.

DFCs will function as independent bodies responsible for assessing, allocating and overseeing financial resources for districts. This structure will ensure equitable resource distribution based on demographic and developmental factors.

Once they receive direct allocations, the local governments will be able to focus on tailored solutions for education, healthcare, infrastructure and economic development.

By learning from international models such as India’s Panchayati Raj and South Africa’s Local Government Equitable Share, Pakistan can adopt proven strategies to strengthen local governance and improve service delivery.

Empowering local governments has long been a promise in election manifestoes of several political parties. However, these commitments often remain unfulfilled due to a lack of financial autonomy. The introduction of DFCs will align with the promises made by political parties and provide a tangible solution for decentralisation.

By embracing the DFC model, Pakistan can ensure that all districts, regardless of their size and economic capacity, get the resources they need to thrive. This is an opportunity to align governance with the principles of decentralisation and bring about a lasting, meaningful change to communities across the country.

Supporting DFCs will not only improve the credibility of political parties but also expand their support base, particularly in rural areas where citizens will directly benefit from enhanced local governance.

Advocating for DFCs will signal a genuine commitment to strengthening democracy and addressing local needs. Political parties that champion this cause will not only reinforce their democratic credentials but also deepen voter engagement, creating a stronger connection with local communities.

Establishing DFCs is not just about governance reform; it is a strategic move to ensure balanced economic development across regions. By allowing districts to retain and manage their financial resources, governments can promote equitable growth, reduce regional inequalities and address local economic challenges more effectively.

This financial autonomy will enable districts to fund initiatives tailored to their unique needs, from agriculture to tourism, contributing to regional economic resilience.

DFCs could also drive poverty reduction by directing resources to sectors like education, healthcare and infrastructure. With greater control over funds, local governments could make quicker decisions, leading to more efficient use of resources and improve the quality of life for citizens.

The creation of District Finance Commissions represents a vital step towards fulfilling the constitutional vision for local governance. Empowering local governments financially will pave the way for a more democratic, accountable and responsive system that serves all citizens equitably.

Political leaders, policymakers, and civil society must unite in support of this initiative, recognising that it is not just a policy change but a commitment to building 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 they need to thrive. This is an opportunity to align governance with the principles of decentralisation and bring about lasting, meaningful change to communities across the country.

The writer is a researcher associated with Sustainable Development Policy Institute