The government has drafted an extensive reform plan aimed at overhauling the governance structure of Islamabad Capital Territory (ICT). Central to this proposal is the establishment of an elected territorial government headed by a chief minister or mayor, alongside the consolidation of fragmented institutions. The initiative also envisions transforming Islamabad into an integrated “Smart City” to improve service delivery and ensure sustainable urban development.
The 138-page “ICT Governance Model” report was developed by a high-level committee led by Planning Commission Minister Ahsan Iqbal. This move responds to concerns that Islamabad’s rapid growth—from a planned administrative capital to a metropolitan area with over 2.42 million residents—has not been matched by adequate institutional evolution. The report has been submitted to Prime Minister Shehbaz Sharif for consideration.
At the heart of the proposal lies the creation of a representative Islamabad Capital Territory Government (ICTG) with administrative and financial autonomy on par with provincial governments, while maintaining Islamabad’s unique federal status. The proposed governance structure includes a 27-member Islamabad Capital Territory Assembly, comprising 21 directly elected members, five reserved seats for women, and one for minorities. This assembly would elect its chief executive, designated either as chief minister or mayor, depending on the federal government’s decision.
the plan, all administrative subjects would be devolved to the ICT government except law and order and master planning, which would remain under federal jurisdiction due to Islamabad’s status as the capital. Responsibilities currently managed by federal ministries and entities such as the Capital Development Authority (CDA) would be transferred to the ICT government to eliminate overlaps and duplication.
The reform package also calls for a unified Islamabad Capital Territory Government Act, merging existing local government and development laws into a single legislative framework. The ICT government would function under its own Rules of Business, featuring clearly defined departmental structures, administrative hierarchies, and financial authorities.
To facilitate implementation, the report recommends establishing several committees: a Legislative Committee comprising the law minister, ICT MNA, secretaries of law and interior, CDA chairman, and co-opted members to draft necessary laws; a Finance Committee led by the planning minister alongside finance, planning, and interior officials, ICT MNA, and CDA chairman to design fiscal transfer and local tax frameworks; and a Transition Committee, potentially headed by the parliamentary affairs minister, to oversee the phased handover and ensure operational continuity.
The report highlights that the reforms are expected to impose minimal new financial burdens, focusing mainly on restructuring and consolidating existing institutions rather than creating new parallel systems, except for reforms related to the ICT Assembly. Federal resource allocations to ICT, including mechanisms for utilizing local taxes, would be finalized under the proposed financial framework.
A key feature of the proposal is the Islamabad Smart City Model, which aims to transform the capital into a technologically advanced, environmentally sustainable, and citizen-centric urban center. The model emphasizes that digital transformation alone cannot resolve governance challenges without accompanying structural reforms.
The Smart City vision rests on three pillars: positioning Islamabad as a “nature capital” through eco-tourism and environmental protection; fostering culture, heritage, and creative industries as engines of civic identity and economic growth; and developing an open, inclusive capital that encourages public participation, urban vibrancy, and international engagement.
Economic analysis within the report suggests that a unified “Destination Islamabad” strategy could boost tourism revenue, create jobs, attract private investments, and enhance local revenue mobilization over the medium term.
To implement this vision and address service fragmentation, the report proposes six specialized authorities under the ICT government: 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 would be managed by professional CEOs, operate under independent governance, and be held accountable through performance-based frameworks.
Central to the reforms is an integrated digital governance ecosystem, incorporating unified systems for land and property management, licensing, taxation, identity verification, grievance redressal, service tracking, and open data dashboards. Building on existing Safe City infrastructure and national digital initiatives, this system aims to enhance transparency, interoperability, reduce transaction costs, and improve citizen services.
The implementation plan foresees a phased rollout over five years, beginning with legal and institutional transitions, followed by the establishment of authorities, digital integration, and performance optimization. The reform agenda aligns with national policies including Uraan Pakistan, Digital Pakistan Policy, National Urban Policy Framework, and Sustainable Development Goals focused on sustainable cities, strong institutions, innovation, and inclusive growth.
If adopted, this framework would significantly reshape governance in the federal capital, positioning Islamabad as a model for metropolitan governance, digital innovation, and public sector modernization in Pakistan. The prime minister had earlier formed a high-level committee, supported by a dedicated subcommittee on ICT governance, to review current arrangements and propose a future-ready governance model consistent with constitutional principles, democratic norms, and international best practices.
