Governance on the brink

Pakistan today stands at a paradox. On the one hand, it boasts one of the youngest populations in South Asia, a resilient entrepreneurial class and a growing digital footprint. On the other, its governance infrastructure is creaking under the weight of outdated systems, fragile institutions and a deepening trust deficit between the state and its citizens.

Political instability, economic fragility and security concerns have all taken their toll, but beneath these symptoms lies a deeper structural challenge: a state struggling to govern, not just to rule. Without a radical rethink of our governance priorities, Pakistan risks permanent stagnation.

The country’s administrative architecture today reflects a fragmented, overstretched, and underperforming state. The 18th Amendment promised devolution and provincial empowerment, yet governance remains concentrated in centralised bureaucracies, operating through decades-old procedures, with little appetite for reform. The constitutional framework may have changed, but political and institutional behaviours have not.

While provinces have been granted greater legislative authority, actual control over fiscal resources, administrative autonomy, and public services remains uneven. The failure to institutionalise Provincial Finance Commissions (PFCs) means that even within the provinces, funds and functions remain tightly held at the top.

Local governments, the missing third tier, have been either suspended, dissolved or rendered toothless across most of Pakistan. This absence of grassroots governance is not accidental; it is the outcome of deliberate political choices to keep power and resources out of local hands.

Even at the federal level, critical platforms for collaborative governance, such as the Council of Common Interests and the National Economic Council, have been sidelined. What remains is a deeply centralised mindset that fails to respond to the demands of a diverse, young and increasingly urbanised population.

The root of it all is a political economy characterised by elite capture, institutional fragmentation and weak accountability. Political parties, rather than championing reform, have become vehicles of patronage. Bureaucracies, suffering from decades of politicisation, transfers and demotivation, are focused more on survival than service. Parliament, which should lead national dialogue on governance reforms, remains disengaged mainly from substantive debates beyond budget speeches and political theatrics.

The broader political instability has only worsened this drift. Governments have become too short-lived to pursue long-term reforms. Meanwhile, opposition parties often prioritise protest over policy. This cyclical instability has crippled policy continuity, disrupted institutional memory, and discouraged investment both domestic and foreign.

Compounding these governance challenges is the resurgence of terrorism in parts of Khyber Pakhtunkhwa and Balochistan. Militancy, however, does not grow in a vacuum. It thrives in ungoverned or poorly governed spaces, areas where state presence is limited, services are scarce and justice is inaccessible. The inability to embed civilian governance in post-conflict or vulnerable regions is a national failure with grave security consequences.

Pakistan’s worsening economic outlook, which now indicates a positive change but has further constrained the state’s capacity to govern. With debt servicing and defence accounting for over 60 per cent of federal expenditure, little fiscal room remains for development, innovation, or human capital investment. Provinces, in turn, are often left waiting for federal transfers, while local tiers – where they exist – remain unfunded.

The National Finance Commission Award, last updated in 2010, no longer reflects demographic realities, fiscal needs or economic disparities. But political sensitivities have prevented any serious attempt at reform. This paralysis has produced a misaligned fiscal federalism, where responsibilities have been devolved but resources have not. Most troubling is the continued absence of functional Provincial Finance Commissions, denying local governments both the funds and autonomy needed to serve their communities.

Rebuilding governance in Pakistan requires more than cosmetic interventions. It demands structural change, political consensus, and sustained institutional commitment. Five strategic priorities can set the course.

First, a new NFC formula must go beyond population-based transfers. It should include incentives for provinces to digitise revenue, strengthen public financial management and devolve to local governments. A portion of federal transfers could be tied to performance indicators such as local government activation, education outcomes, and tax effort.

Second, all provinces must be legally bound to constitute and activate their PFCs. Local governments cannot function without predictable, formula-based transfers, where the only viable option is the formulation of the District Finance Commission. Political will, rather than technical capacity, remains the real barrier.

Third, a permanent national body mandated by parliament should oversee governance reform, civil service restructuring and federal-provincial-local coordination. Its mandate must be protected from political cycles and supported by all major parties.

Fourth, devolve functions, finances and functionaries to elected local governments with constitutionally protected tenure. Empowering cities and rural districts is no longer an option; it is instead essential for public service delivery, economic planning and disaster resilience.

Lastly, political parties must be incentivised to move beyond personality-driven politics. Strengthening intra-party democracy, enforcing party manifestos and building policy capacity within parties are long overdue reforms. Electoral oversight institutions, such as the Election Commission of Pakistan, must play a more assertive role in ensuring political accountability.

Governance in Pakistan suffers not only from resource shortages but also from a lack of imagination. The debate continues to oscillate between centralisation and devolution, without a clear model of cooperative federalism. It is no longer enough to tinker with laws or create task forces. What is needed is a governance philosophy anchored in citizen service, fiscal equity and institutional integrity.

Unless Pakistan invests in rebuilding the social contract from the union council to the national capital, it will remain stuck in a cycle of political instability, economic distress and administrative decay.

The time to act is now. Because in governance, delay is not neutral; it is destructive.

The writer is associated with the Sustainable Development Policy Institute (SDPI), Islamabad. The article does not necessarily represent the views of the organization.