Islamabad is now bigger than the institutional setup which was conceived for it. According to 2023 Census, Islamabad Capital Territory’s population stands at more than 2.36 million, with its annual population growth rate being 2.8 percent, while around 53 percent of the population is rural. It has become not only a purpose-made federal capital but also a metropolitan territory with increasing residential zones, economic activities, universities, tech firms, peri-urban towns and needs relating to transportation, water supply, sanitation, housing and environment.
However, the institutional framework overseeing this expanding population is fragmented, as various federal ministries, CDA, Islamabad Capital Territory Administration and other governmental institutions discharge functions within the same geographical area. Thus emerges the accountability dilemma. Citizens deal with various institutions but cannot point to one elected body which is accountable for the city’s overall functioning. For instance, when the condition of roads gets worse, garbage collection system malfunctions, shortage of water occurs or urbanization puts new challenges before the territory, there is a lack of clear responsibility in bureaucracy.
This is the reason why the discussion on Islamabad needs to move on from the conventional call for yet another arrangement of local government. What is needed is a unique government for Islamabad that will be provided with real political, administrative, and financial power in relation to its daily concerns. The federal government needs to retain its exclusive power on defense, security, foreign affairs, diplomatic missions, Parliament, federal entities, and other aspects linked to the status of national capital of Islamabad. However, social services and municipal functions must be put under the elected government of ICT.
The rule is simple: if there are those responsible politically, then they need to be provided with the administrative power to take action. The elected ICT Assembly must have the power of legislation, budgeting, and oversight in devolved areas. There should be a powerful Chief Minister or Mayor who can run the show through a cabinet and departments. Otherwise, political devolution without administrative and financial devolution will only result in another level of bureaucracy.
Furthermore, such a system would ensure democracy for Islamabad’s population in terms of representation. The population that is larger than two million cannot rely on the federal representatives only in decision making on issues of local roads, local transportation, sewage, water, recreation facilities, garbage collection, local economic and environmental issues. People have to be able to understand who they elect, who they can question and, ultimately, who they can dismiss from office. Hence, the central issue of democracy is quite simple – who is accountable to the people of Islamabad in the state of their city?
The case of Canberra may serve as an example of how this could be arranged without compromising the federal nature of a capital city. Australia’s Australian Capital Territory unites the territorial and local government functions into a single system. The 25-members legislative assembly of Canberra makes laws, oversees government expenditures and represents citizens; the assembly elects a Chief Minister who runs the government and controls the territory budget. In contrast to other cities of Australia, Canberra has no separate municipal council because the territory government undertakes both functions. However, Islamabad does not have to follow this example, but what this shows is that there is an elected government for its citizens along with a federal government within a national capital.
This is especially true when it comes to the issue of metropolitan planning. Islamabad’s issues cannot be resolved through compartmentalized organizations. Traffic cannot be segregated from housing; public transportation cannot be segregated from land use planning; water cannot be segregated from the expansion of urbanization; and environmental protection cannot be segregated from development. As such, Islamabad needs an integrated strategy in metropolitan planning that will cover the next 10 to 20 years ahead with objectives in terms of housing, transport, water, sewerage, waste disposal, infrastructure, and environmental protection.
Issues related to water and environment must be regarded as strategic metropolitan concerns. The green nature of Islamabad is one of its major assets; however, with urban expansion, constant pressure is brought upon the city’s forests, hills, drainage systems, and water sources. An organized system of governance would enable an elected government of ICT to coordinate development with conservation of natural resources. The same thing goes with public transportation which should be integrated in terms of route planning, roads, parking, traffic management and development patterns need to be planned as one interconnected system.
Equally crucial is the concept of fiscal autonomy. The ICT government needs definite sources of local taxation revenue such as property taxes and others. Islamabad serves functions related to all of Pakistan as the nation’s capital; therefore, a federal capital grant would be warranted to take care of the costs associated with the functions of hosting the Parliament, diplomatic missions, federal establishments and others.
In fact, Islamabad need not become a typical province of Pakistan. It has its constitutional status as the Federal Capital Territory and its constitutional functions need to be clearly distinguished from the powers of the federation and ICT governments. The aim here is not to undermine but to delineate the powers of the federation which must control the national capital in respect of national matters. On the other hand, the elected ICT government must manage the affairs of people living in Islamabad.
This proposal also acquires significance in light of current developments, because the Planning Commission has itself acknowledged the necessity of reforms. As recently as June 2026, the Planning Minister proposed the establishment of an elected Islamabad Capital Territory Assembly and a locally accountable Chief Executive, arguing that the current arrangement was outmoded and fragmented. This arrangement is expected to consist of a 27 member Assembly and administrative and financial autonomy on issues relating to health, education, environment and public services, while leaving some responsibilities at the federal level.
This raises the issue not whether Islamabad has surpassed its outmoded and fragmented administrative structure but whether governance would keep pace with its growth. Islamabad has to evolve from being administrated as a capital city into being governed as a metropolis. Governance through an elected assembly, accountable executive, professional departments, fiscal competence and federal roles properly identified, will enhance accountability and service delivery.
The fundamental principle to which Islamabad must commit should be clear cut – the capital city of Pakistan should not only host the government, but should also be governed by its citizens.
