Service delivery framework for MDGs
under LGO, 2001
 

Local Government System and Structures
In Pakistan, there have been adhoc and partial responses to the wide-ranging national crisis of poor governance. The need for restructuring the institutions of the state stemmed from the fact that over the years high levels of investments have been made in Pakistan in ”brick and mortar” type of schemes while crucial governance issues like democracy, justice, rule of law, respect for rights, quality of service delivery, responsiveness to citizen’s demands, transparency and accountability received a comparatively low priority. The abuse of political and administrative systems and poor financial management resulted in a slowing down of investment and economic growth. The poor faced markets, state institutions and local power structures that discriminated against their access to resources, public services and governance decisions. The impact of the crisis of poverty was particularly acute on the most vulnerable sections of society, namely women and children. Economic growth cannot be stimulated nor poverty alleviated without addressing the governance deficit.

Pakistan initiated institutional renewal through a process of national reconstruction with a focus on reforms in the areas of Governance and Devolution. Till 2001 Governments experimented with varying forms of local self-government but it remained an unfulfilled promise. The new system of local government was established in 2001 to bring the Government closer to the people, safeguard their rights and bring about sustainable development and credible improvement in public service delivery.

The objective of the devolution reforms is greater democratization and accountability. The basic principles employed are that local governments should be people-centered, rights and responsibility based, and service oriented. The overall strategy requires a change from a ‘colonial top-down’ to a ’people-friendly bottom-up’ system of democratic governance.” It focuses on addressing the past Governance issues relating to centralized and top-down decision-making, haphazard planning, weak accountability and financial management, lack of transparency and citizens participation etc. The principles of across the board accountability and public participation underpin the reforms process with the focus on improving the public sector service delivery mechanisms and realization of the MDGs.

Devolution calls for empowered, accountable, elected local governments, with the requisite authority, capacity, financial resources, administrative and financial systems, and accountability mechanisms to deliver local public services effectively and to serve the poor. Community participation is at the centre of the strategy. The Citizen Community Boards are expected to ensure the participation of the non-elected citizens in the development process.

A strategy for integrated development planning, implementation and monitoring has been devised based on separation of functions. Development activities within the decentralized functions are to be planned and executed only by the local governments and the policies are to be developed on a bottom up approach-initiated at the local level and culminating at the provincial and national level.

The devolution plan serves as a framework for devolved service delivery and has been legalized through the LGO to serve as the vehicle for grass root development. Planning and implementation agencies at all levels use the framework for achieving national, provincial and local level development goals.

The local government system has been acclaimed internationally as well. The design of the LGO meets all the twelve principles of the Aberdeen Agenda.

Poverty reduction is to be addressed through elected and accountable local governments by strengthening the political, administrative and financial structures at the local level necessary to effectively implement the poverty reduction strategy. The LGs have been assigned critical functions relating to primary healthcare, education, tax collection, land revenue, water supply, sanitation, conservancy, sewer & storm water, solid or liquid waste, drainage, public toilets, express-ways, bridges, flyovers, public roads, streets, footpaths, traffic signals, pavements and lighting public parks, gardens, arboriculture, landscaping, billboards, hoardings, fire fighting, land use control, zoning, master planning, classification, declassification or reclassification of commercial or residential areas, markets, housing, urban or rural infrastructure, environment and construction & maintenance of the facilities. They also enforce local and special laws and functions assigned under the Police Order 2002.

The social sectors and municipal functions have a direct bearing on the socio economic indicators in the country. The local governments have a critical responsibility in providing the basic infrastructure and the environment for ensuring sustained socioeconomic growth and rural and urban infrastructure development. The achievement of the Millennium Development Goals (MDGs) relate to the proper and efficient functioning of the local government functions. The local government expenditures are all pro-poor expenditure and are reflected in the PRSP of the Government of Pakistan. Under the LGO local governments have a major role in reducing poverty. All rural development functions such as livestock, agriculture (extension), community development, social mobilization, fisheries etc. are now the responsibility of the local governments.

To support the above objectives and strategy the Local Government Ordinances (LGOs) were enacted by each province in August 2001.

The Provincial Local Government Ordinances, 2001 have been included in the Sixth Schedule of the Constitution and can be amended with the previous sanction of the President after consultation with the Prime Minister in accordance with the provisions of Article 268 (2) of the Constitution. Articles 32 and 140-A of the Constitution of the Islamic Republic of Pakistan, 1973 also provide for local governments as follows: -

”32. Promotion of local Government institutions - The State shall encourage local Government institutions composed of elected representatives of the areas concerned and in such institutions special representation will be given to peasants, workers and women.

140-A. Local Government - Each Province shall, by law, establish a local government system and devolve political, administrative and financial responsibility and authority to the elected representatives of the local government.”

The current province-wise position of local areas under the Local Government Ordinances 2001 is given in the table.

Province wise summary of Local Governments

 Local Level Elected Representatives
District Level Elected Representatives (excluding *ex officio members)

Tehsil (Taluka)/Town Level Elected Representatives
(excluding *ex officio members)

 Union Level Elected Representatives

District Government
In the District Government there are 1 1 groups of district offices each headed by an Executive District Officer (EDO) reporting to the District Coordination Officer. District officers (DOs) head sub-offices at district headquarters, with deputy district officers (DDOs) in charge of specific functions located in the tehsils. The groups of offices in a District Government are Agriculture, Community Development, Education, Finance & Planning, Health, Information Technology, Law, Literacy, Revenue and Works & Services and District Coordination (headed by DCO).

The Head of District Police under Police Order 2002 is responsible to the Zila Nazim for matters relating to the maintenance of law and order in the district. 

City District Government
To address the problems of predominantly urban districts City District Governments have been established. The political, administrative and financial arrangements of these districts are on the pattern of normal districts. City districts may, however, depending on economies of scale and the nature of their urban infrastructure vary the groups of offices and set up district municipal offices for the integrated development and management of a specified range of services, primarily those relating to the environment, public sanitation, housing, planning, and cultural matters.

Tehsil Municipal Administrations
Tehsil Municipal Administrations (TMAs) are mainly successor bodies to former urban local councils and inherited staff and organizational structures from those bodies. The Tehsil Nazim is head of the Tehsil Municipal Administration and is assisted by Tehsil Municipal Officer.

TMAs are responsible for municipal services such as water supply, sanitation, conservancy, removal and disposal of solid and liquid waste, sewer & storm water, drainage, roads, bridges and related physical infrastructure, land use control, master planning, classification of commercial/residential areas, markets, housing, urban or rural infrastructure and its maintenance and environment etc.

In Tehsil Municipal Administrations, the Tehsil Municipal Officer is supported by four Tehsils Officers with responsibility for Municipal Regulations, Infrastructure and Services, Planning and Finance respectively. 

Union Administration
At union level, the Union Nazim is head of the administration. He is assisted by up to three Secretaries. The Union Council is the lowest tier of the local government system. Each Union Council is composed of 13 directly elected members including Union Nazim and Naib Union Nazim. Unions perform mainly monitoring functions and undertake development schemes. 

Provincial Finance Commissions
From fiscal year 2002-2003 a transparent, formula-based system determines transfer of funds to local governments. For this purpose under the LGO a Provincial Finance Commission has been established by each Province. The Finance Commission consists of Minister for Finance of the Province (Chairman of the Commission), Secretary Local Government and Rural Development Department, Secretary Finance Department (Secretary of the Commission), Secretary Planning & Development, one Zila Nazim, one Tehsil or Town Nazim and one Union Nazim, and three professional members from the private sector.

The functions, duties and powers of the Finance Commission are to make recommendations to the Governor for a formula for distribution of resources including:

i.    distribution between the Government and the local governments out of the proceeds of the Provincial Consolidated Fund into a Provincial Retained Amount and a Provincial Allocable Amount respectively; and

ii.   distribution of the Provincial Allocable Amount amongst the District Governments, Tehsil and Town Municipal Administrations and the Union Administrations as shares; 

The transfer of shares under the PFC award is not discretionary. It is now a legal requirement. The funds are transferred as per the share of each local government. The distribution formula includes backwardness as a parameter. Now for the first time the funds have to be distributed in terms of poverty parameters. Through the PFC award a mechanism for transparent and equitable distribution of resources has been introduced. The system is functional as shares are being paid regularly to the local governments. 

Provincial Local Government Commission
The Provincial Local Government Commission (PLGC) is responsible to the Chief Executive of the Province. It comprises a Chairman (the Minister for Local Government), two members from the civil society, one each nominated by the leader of the House and leader of the Opposition of the Provincial Assembly and two eminently qualified and experienced technocrat members selected by the Government. The Secretary, Local Government and Rural Development Department, is an ex-officio member and also Secretary of the Commission. The functions of the Provincial Local Government Commission inter alia, are to:

i.      conduct annual & special inspections of the local governments;

ii.     undertake inquiries into any matter concerning a local government;

iii.    conduct special audit;

iv.    resolve disputes between any Department of the Government and District Government or between two District Governments;

v.     arrange consultative planning meetings of national and provincial legislatures, Zila, Tehsil or Town Nazims of a district on a periodic basis in order to provide for their participation in development activities of the district; and

vi.    facilitate the performance of Provincial departmental functions of the decentralized offices relating to policy analysis, oversight, checks and balances, capacity building and coordination. 

The Commission is required to submit an annual report to the Chief Executive of the Province on the over-all performance of the local governments.

Zila Mohtasib (District Ombudsman)
In order to redress citizens’ grievances related to district offices, the institution of District Ombudsman (Zila Mohtasib) is to be established in accordance with the Local Government Ordinance 2001. The Ombudsman will be selected and appointed by the Zila Council. The Ombudsman will investigate and redress matters involving maladministration either suo moto or on a complaint from any citizen.

Musalihat Anjuman
The Musalihat Anjuman is a body established in each union, with members selected by the Insaf Committee of the Union Councils, to assist in the amicable settlement of disputes. The Anjuman members are public figures known for their integrity and good judgment. The Musalihat Anjuman concept fully embraces the notions of easy access to justice and local empowerment.

Monitoring Committees
All councils elect committees from amongst their members for monitoring the performance of the respective administrations. Monitoring Committees are required to perform their functions in a non-intrusive manner without interfering in the day to day working of the relevant offices and assuming a command and control role. The councils review the Monitoring Committees’ quarterly reports. In addition to Monitoring Committees, Councils elect other committees like Insaf (Justice), Accounts, Sports and Ethics. The Zila councils also elect the members of the Zila Council for representation in the District Public Safety and Police Complaints Commission.

Citizen Community Board (CCBs)
In every local area (defined as Union, Tehsil(Taluka)/Town, District and City District) a group of 25 non-elected citizens may, for energizing the community for development and improvement in service delivery, set up a Citizen Community Board. Community Boards are registered with the Community Development Group of Office of the respective district.

Each local government allocates 25% of its development budget for utilization by CCBs and the amount which remains unspent is credited under the same head in the following year’s budget in addition to the fresh allocation. The CCBs submit their proposals on a standardized application forms. The maximum share of the Local Government cannot exceed 80%. The community share in cash must not be less than 20%. The details of the CCBs registered since December, 2003 are given table.

Number of CCBs registered

 The communities have shown great interest in development of their areas through CCB schemes. An analysis of the information collected reveals that the communities are interested in investing in projects relating to Agriculture, Soling (bricks pavement), Water Supply, Drainage, Education, Women Development, Education and Health.

Village and Neighbourhood Councils
Village and Neighbourhood Councils are to be established to promote participation in the democratic process. The Village Council is seen as the ‘ideal associative unit for participation’, whilst the union is the ‘ideal unit for the monitoring of services’. The village or neighbourhood council has a proactive role to promote citizen involvement in the development process.

GO Framework for Service Delivery
The provincial LGOs define the new legal framework for service delivery, which has also been incorporated in the Medium Term Development Framework (MDTF 20052010) of the Government and the PRSP. It includes the following fundamental principles:

i.      Local governments are to function within the provincial framework.

ii.     Provincial Governments are responsible for policy, regulation, guidance and monitoring of outcomes.

iii.    Inspections, enquiries and dispute resolutions are to be carried out through PLGC.

iv.    Enforcement of local and special laws is the responsibility of local governments.

v.     The concerned council is to approve each development scheme relating to local government function.

vi.    No local government function is to be performed by provincial Government or any other agency/body.

vii.   All projects and programmes relating to decentralized functions are to be executed through the local governments.

viii.  Vertical programmes and parallel structures executing local government functions are to be realigned.

ix.    The share (salary, non-salary, 2.5 percent General Sales Tax and development) of each local government is to be transferred directly to the account of the respective local government.

x.     Local governments enjoy full powers to take administrative and financial decisions relating to their functions.

xi.    There will be no limits on technical sanctions and no restrictions on incurring expenditure by a local government.

xii.   Local councils to notify their own byelaws relating to delegation of financial and administrative powers.

xiii.  Nazim is the executive head of local government administration. There shall be only one Budget and Development Committee, headed by the nazim, in a district.

xiv.  The local governments will have their own District Service and shall be responsible for their employees.

xv.   The NGOs and civil society are to assist in developing the capacity of local governments and to facilitate the local governments in improving service delivery.

xvi.  The CCBs mechanism is to integrate the citizens with the development process. 

The above serves as a framework for devolved service delivery, which has been legalized through the LGO to serve as the vehicle for devolved development. Planning and implementation agencies at all levels use the framework for achieving the national, provincial and local level development goals.

The first term of the local governments ended successfully in June 2005. The people are now looking forward to an even better performance from the local governments in the second term. The provincial ownership is now well established for the reforms as most of their reservations and the teething problems have been addressed. Devolution and the strategy adopted for implementation has been effective as the service delivery indicators for the first term of local governments have shown positive trends, whereas the social sector indicators were declining or stagnant in the pre-devolution period.