• Proposed reforms reduce institutional duplication.
• Smart City model links governance overhaul with digital transformation.
• Five-year roadmap targets metropolitan governance reform and modernisation.
  

ISLAMABAD: The government has prepared a major reform blueprint for sweeping changes to the governance system of Islamabad Capital Territory (ICT), including the creation of an elected territorial government led by chief minister or mayor, consolidation of fragmented institutions, and a shift towards an integrated “Smart City” model aimed at improving service delivery and long-term urban planning in the federal capital.

The 138-page report on “ICT Governance Model” was prepared by a high-powered committee under Planning Commission Minister Ahsan Iqbal, amid concerns that Islamabad’s rapid transformation from a planned administrative capital into a metropolitan city of more than 2.42 million people has not been matched by institutional evolution. The report has been presented to PM Shehbaz Sharif.

At the centre of the proposal is the creation of a representative Islamabad Capital Territory Government (ICTG) with administrative and financial autonomy comparable to provincial governments, while preserving Islamabad’s special federal character.

The proposed structure includes an elected Islamabad Capital Territory Assembly comprising 27 members: 21 directly elected members, five reserved seats for women and one reserved seat for minorities. The assembly would elect its chief executive, to be designated either as chief minister or mayor, as determined by the federal government.

Under the plan, all subjects would be devolved to the ICT government except law and order and master planning, which would remain under the federation due to Islamabad’s capital status. Operational responsibilities currently handled by federal ministries and organisations, including the CDA, would be transferred to ICT government to eliminate duplication and institutional overlap.

The reform package also proposes a unified Islamabad Capital Territory Government Act, consolidating existing local government and development laws into a single legislative framework. The ICT government would operate under its own Rules of Business, with defined departmental structures, administrative hierarchy and financial authority.

For implementation, the report recommends setting up multiple committees: A Legislative Committee (including the law minister, ICT MNA, secretaries of law and interior, CDA chairman, and co-opted members) to draft laws; a Finance Committee (led by the planning minister, with finance, planning, interior officials, ICT MNA, CDA chairman, and others) to design fiscal transfers and local tax utilisation mechanisms; a Transition Committee (potentially headed by minister for parliamentary affairs, with interior officials, CDA leadership and others) to oversee phased handover and operational continuity.

Report notes that minimal new financial burden is expected, as reforms focus on restructuring and consolidating existing institutions rather than creating parallel systems, with the exception of ICTA reforms. Resource allocation from the federal government to ICT, including local tax utilisation, would be finalised under the finance framework.

A major component of the proposal is the Islamabad Smart City Model, aimed at transforming the capital into a technologically advanced, environmentally sustainable and citizen-centric urban centre. The model places institutional reform at its core, emphasising that digital transformation alone cannot resolve governance failures without structural change.

The Smart City vision is built on three pillars: developing Islamabad as a “nature capital” through eco-tourism and environmental conservation; promoting culture, heritage and creative industries as drivers of civic identity and economic activity; and creating an open, inclusive capital that supports public participation, urban vibrancy and international engagement. Economic analysis cited in the report suggests that a unified “Destination Islamabad” strategy could significantly increase tourism revenue, generate employment, attract private investment and improve local revenue mobilisation over the medium term.

To operationalise this vision and address service fragmentation, the report proposes six specialised authorities under the ICT government including ICT Health Authority; ICT Education Authority; Social Welfare and Inclusion Authority; Tourism and Culture Authority; Environment and Climate Authority; and Digital and E-Governance Authority. Each authority would be professionally managed, headed by a qualified CEO, operate under independent governance structures, and be subject to performance-based accountability frameworks.

Central to the reform is an integrated digital governance ecosystem, including unified systems for land and property management, licensing and taxation, identity verification, grievance redressal, service tracking and open data dashboards. Built on existing Safe City infrastructure and national digital initiatives, the system aims to improve transparency, interoperability, reduce transaction costs and enhance citizen service delivery.

The implementation roadmap envisions a phased, five-year rollout beginning with legal and institutional transition, followed by establishment of authorities, digital integration and performance consolidation. The reform agenda aligns with national policy frameworks including Uraan Pakistan, Digital Pakistan Policy, National Urban Policy Framework and Sustainable Development Goals, particularly those related to sustainable cities, strong institutions, innovation and inclusive growth.

If implemented, the proposed framework would significantly restructure governance in the federal capital, aiming to establish Islamabad as a model for metropolitan governance, digital transformation and public sector modernisation in Pakistan.

The prime minister had constituted a high-level committee, supported by a dedicated subcommittee on ICT governance, to review existing arrangements and propose a future-ready model aligned with constitutional principles, democratic norms and international best practices.

Originally published in The News