The government “is heading in the right direction towards achieving macroeconomic stability”, says Finance Minister Muhammad Aurangzeb, acknowledging that “we have a long way to go”. This statement is supported particularly by falling inflation and upgraded credit rating by international credit rating agencies.

The Ministry of Finance expects inflation to decline to nine to 10 per cent in September from 9.6pc in August. But analysts argue that “in the given circumstances, the ‘victory statement’ against inflation by the prime minister is a little premature.” The capital market hopes that interest rates will come down, and some hope that consumers may get some relief with a drop in prices.

The cost of living crisis — including unemployment and poverty — is a complex issue. As highlighted by a seminar held in Rawalpindi on Sept 1, “The bottom-up approach is crucial to sustainable development and inclusive growth, where a segment of society is left behind.”

The seminar, organised by the Sustainable Social Development Organisation and participated by current and former lawmakers, political figures and civil society representatives, urged the government to hold local government elections in Punjab as early as possible — the tenure of local government elections in Punjab, last held in 2015, ended in February 2021.

Local elections give people the power to make decisions that directly affect their neighbourhoods

The speakers at the seminar stressed that by regularly holding local elections, citizens are given the power to make decisions that directly affect the neighbourhoods, ensuring that their needs and concerns are addressed effectively.

In this backdrop, the federal development budget for 2024-25 has been reduced from Rs1.4 trillion to Rs1.1tr and further reductions are now likely, says Federal Minister for Planning and Development Ahsan Iqbal.

Responding to supplementary questions by National Assembly members, he said the government’s priority would be to continue projects funded by external sources.

In the given situation, PML-N President Nawaz Sharif has advised the federal and provincial governments to reduce expenses and allocate funds for public relief.

However, it is time to start substituting charity with social justice. Pakistan’s ranking in the Sustainable Development Goals Index dropped from the 128th position in 2023 to 137 in 2024 among 166 countries.

Nawaz Sharif has also directed his party leadership to make the local government system more effective, stressing that the local government should have the capacity to resolve issues at the grassroots level. So far, there has been no move in Punjab to empower the third tier of government with administrative, financial and legislative powers.

In Sindh, the provincial government finally notified on Sept 3 an increased monthly Octroi Zilla Tax allocation for LG institutions. Karachi Mayor Murtaza Wahab Siddiqui says 140pc hike will enable the city’s 246 union committees to solve basic issues of their area. Earlier, though, Sindh’s chief minister had announced that OZT funds would be increased from July 1.

The municipal corporations, including the Karachi Metropolitan Corporation, will receive a 30pc larger share of OZT while district councils, municipal committees and town committees will get a 20pc increase in their funds.

Jamat-i-Islami has demanded the immediate formation of the Provincial Finance Commission for the equitable distribution of resources among districts.

In Balochistan, “The local governance issues were exacerbated by the disputed delimitation of constituencies preventing the elections in Quetta district while budget constraints hampered the effectiveness of local governments,” according to a report of the provincial chapter of the Human Rights Commission of Pakistan.

In Khyber Pakhtunkhwa, there are frequent protests by local government representatives against delays in the provincial government’s disbursement of funds.

In Punjab, frequent amendments in the election laws just when the elections were round the corner, have delayed local government polls.

By having elected representatives at the local level, the Rawalpindi seminar stressed that communities can advocate for equitable resource allocation and ensure that their development projects align with their unique needs.

The poll scheduled for Islamabad on Oct 9 is to be postponed following the promulgation of Islamabad Capital Territory Local Government (Amendment) Act 2024.

Fresh delimitation is required as the number of general seats in each council is now increased from six to nine. This was the third time bottlenecks were created in holding polls in the federal capital.

Earlier, the former Pakistan Democratic Movement government decided to increase the number of union councils from 50 to 101. When arrangements were finalised to hold elections in 101 union councils, the number of councils were raised again from 101 to 125. Now, when the elections were going to be held in 125 union councils, the government came up with the idea of increasing the number of general seats in the councils.

Under the proposed Punjab Local Government Amendment, a tehsil council will be established in every tehsil. The exact number of union councils will be determined following the demarcation process on a recent census. Women, ministries, peasants, workers and youth will be given representation at all levels of the local government structure.

Published in Dawn, The Business and Finance Weekly, September 9th, 2024