September 2, 2026
By Hashir Ahsan
ISLAMABAD
The Ministry of Planning has prepared recommendations to establish the federal capital, Islamabad, as a new federal unit. Under the proposed plan, Islamabad’s administration would operate through 27 departments and a 27-member assembly modeled on a provincial framework.
According to the recommendations, except for Law and Order and Master Planning, most of Islamabad’s governance will be managed by an assembly of elected members. Following instructions from the Prime Minister, a phased consultation process is currently underway with citizens, journalists, and civil society representatives.
During a consultative meeting with civil society, Minister for Planning Ahsan Iqbal noted that there is currently no effective forum to raise a voice for Islamabad’s issues, forcing the federal government to directly handle the city’s day-to-day problems. Once consultations are complete, the final recommendations will be submitted to the Prime Minister.
Under the proposed system, the 27-member assembly will feature 21 directly elected members, 5 seats reserved for women, and 1 seat reserved for minorities. Islamabad’s 3 National Assembly seats will remain intact, with 7 local legislative seats established within each National Assembly constituency.
Ahsan Iqbal stated that to improve the country’s deteriorating social indicators, Pakistan must either create 15 additional provinces or establish 160 fully empowered district governments. He noted that the existing two-tier system of federal and provincial governments has failed to provide effective governance and public welfare.
The Federal Minister added that there are only 1,170 official executive positions to meet the needs of a population of 260 million, allowing democracy in Pakistan to be captured by a specific elite. He argued that public issues cannot be solved until 150,000 to 200,000 new official positions are established through local governments.
He highlighted that under the 18th Amendment in 2010, the federal government transferred 17 departments to the provinces, but the provinces failed to devolve a single department to local governments. By comparison, he noted that India has 28 provinces and Afghanistan has 34.
According to the minister, the proposed administrative and governance framework for the Islamabad Capital Territory (ICT) is ready, though it remains a draft awaiting approval from Prime Minister Shehbaz Sharif.
He pointed out that the capital’s 2.6 million citizens remain powerless regarding their city’s affairs because all authority currently rests with the bureaucracy. For instance, a single Grade-20 officer simultaneously serves as Chief Commissioner of Islamabad and Chairman of the Capital Development Authority (CDA). Ahsan Iqbal expressed regret over these structural gaps, particularly regarding budget approval and legislation for ICT.
Another option under consideration is to either grant ICT full provincial status or make it a fully empowered local government body.
Ahsan Iqbal cited the recent tragic fire at PIMS—which cost the lives of at least 14 newborns—as a stark wake-up call for immediate administrative reform. He emphasized that the current system is paralyzed by overlapping jurisdictions between the CDA, the Municipal Corporation Islamabad, and the Ministry of Industries.
To address these failures, the Prime Minister formed a high-level committee to review the existing framework and propose a new governance model. Chaired by Ahsan Iqbal, the committee includes Minister for Inter-Provincial Coordination Rana Sanaullah, Minister for Interior Mohsin Naqvi, and Minister for Petroleum Musadiq Malik.
The committee’s mandate is to examine international capital governance models and propose a viable structure for Islamabad that grants administrative and financial autonomy similar to provincial governments. It will also evaluate the local administration’s capacity to manage transferred departments—including health and education—prepare a time-bound transitional plan for resources, and review ICT’s local government legal framework.
Sources confirm that each National Assembly constituency will be split into seven local constituencies for the ICT Assembly. Qualifications and disqualifications under Articles 62 and 63 of the Constitution will apply to all ICT Assembly members. The assembly will elect its leader—titled either “Chief Minister” or “Mayor”—who will serve as the Chief Executive of the ICT government and report to the assembly. Ahsan Iqbal noted that the final decision on the executive’s title rests with Prime Minister Shehbaz Sharif.
Islamabad’s departments will be patterned after provincial departments, though fewer in number. The committee has proposed 27 departments alongside at least 7 special authorities. Law and Order and Master Planning will remain under federal jurisdiction, managed either through a federal minister or an appointed Governor for ICT.
Apart from Master Planning, all powers of the CDA will transfer to the ICT government. The local government tier will consist solely of Union Councils, which will work alongside ICT government departments.
To implement these changes, a single unified law—the “Islamabad Capital Territory Government Act 2026″—will be enacted. Following necessary constitutional amendments, it will merge key provisions from the Local Government Act 2015 and the CDA Ordinance 1960.
The Islamabad government will draft its own Rules of Business to handle local affairs, while the federal government’s Rules of Business 1973 will be amended accordingly. The administrative structure will be led by a Chief Secretary and four Secretaries, each overseeing a group of departments. The Law and Order and Master Planning departments will report directly to the federal minister or Governor through the Chief Secretary.