The election of mayors and other municipal chiefs in Punjab was held in December 2016. While the usual activities were observed in the electoral process, the key questions regarding the administrative and financial powers remain undecided. The commissionerate system is in the process of active revival in Punjab, as has been done in Sindh some years ago. It is obvious that provincial governments, which possess considerable powers and autonomy, shall retain control of administrative and financial matters. But this arrangement seldom serves the people.

The nascent aspirations of ordinary folks have very limited existence in the financial decisions that are manifested in local financial resolutions. This aspect becomes starkly apparent at the level of district, town, tehsil or taluka level which have the most dominant bearing on the lives of ordinary people.

A prime task performed by local governments is managing and maintaining the existing services and infrastructure. Repairs of roads and lanes, drainage channels, public works, waste management and sanitation, tending parks and playgrounds and housing for the under-privileged are some common tasks performed by municipalities round the clock. Apparently, these are non-glamorous pursuits but most essential in terms of routine functioning of the society.

It is disappointing to note that common problems of ordinary people do not find a befitting response. For example, countless studies done in the domain of urban locations in Pakistan show that housing for low-income groups is a chronic issue. With the rise in land prices, construction materials, technical inputs and other allied ingredients, the poor find it next to impossible to develop housing compatible with family needs.

The government has withdrawn direct subsidies on housing for a very long time. But in a civilised society that follows market economy doctrines, the state encourages benevolent entrepreneurs that venture to create affordable housing for less privileged citizens. This task is performed by an array of carefully worked-out target subsidies and incentives. Institutions that extend credit support to lower-income people are consolidated. In certain cases, fiscal relief is provided to ensure the extension of social abetment to the downtrodden masses.

One finds that housing remains a totally neglected domain in our financial policy priorities, even at local level. With the exception of few rudimentary inputs of providing tertiary infrastructure, local governments do not seem to be interested in providing housing to the needy people. Municipalities in the developing world have usually come up with worthwhile housing provision choices in many contexts. Social housing programmes are one category. By responding to the housing needs of lower-grade formal sector employees, a sizable number of the poor can be facilitated.

Protection of land reserves, facilitation of formal developers to package housing for a range of income groups, extension of housing loan options and formulation of effective cooperative institutions are time-tested options to redress the pressing need of urban and semi-urban poor.

Our system of commuting is divided on the basis of social classes, both at the inter and intra-city level. The informal private sector has been the key service provider in most cities. Several government-managed transport corporations and companies have gone bankrupt, and hence been disbanded. At the intra-city level, the poor and lower middle income groups have to take a chance on worn-out and rickety mini buses, wagons or buses.

Since financial incentives do not exist and operational risks are very high, common private entrepreneurs do not enter this domain of enterprise. Middle and upper classes prefer motorcycles and cars. With the diverse car loan options that are available now, there is a growing trend of owning private cars.

As policymakers are unable to gauge the plight of ordinary commuter, it is lingering. It is ironic to note that in large cities such as Karachi, vital transport schemes like Karachi Circular Railways have been facing inordinate delays in execution. In the horde of projects announced during the recent past, no time frame is given to complete crucial projects. In Bus Rapid Transit that runs in Lahore, foreign-manufactured buses are used despite the fact that we have a reasonable track record of assembling and manufacturing large vehicles. Our automobile industry has not been able to scale up its output to the numbers and requirements of, what could be termed, local captive market. A huge opportunity to generate employment for our people is thus lost to outside entrepreneurs.

Social and physical infrastructure in medium and small cities is falling apart. It may be mentioned that the number of such urban locations is over 525 in Pakistan. In the usual outlay of budgets, more than seventy per cent of allocation is barely enough to meet the establishment cost. Smaller municipalities are left with no funds to look after and maintain the crippling infrastructure. They are left with no choice except to keep applying to federal and provincial governments. In rare cases, an MNA, MPA or a Senator’s funds come to the rescue but in a sporadic manner.

The operational situation of social facilities is adversely affected due to poor governance and an acute shortage of human and monetary resources. Sights of abandoned public buildings, ghost schools and deserted clinics/hospitals are common place. The scenario merits some innovative financial and governance initiatives to address the grave issues.

In the efforts geared towards making reforms, the federal government can consider the creation of a federal fund for urban development and renewal of cities with a population of less than one million. It can begin by examining the available list of projects and programmes outlined in Annual Development Programmes (ADPs) of respective districts. As the capacity of planning and development in these locations is virtually non-existent, the fund can become the support institution also. It can extend technical advice on urban and regional planning, project preparation, formulation of tender documents, bid evaluation and other normal tasks.

Urban rehabilitation programmes have been successfully implemented in neighbouring India -- from the platform of Jawaharlal Nehru Urban Renewal Mission -- and Sri Lanka. Useful lessons can be drawn from similar attempts.

At the level of medium and large cities, urban equalisation funds may be developed. The concept behind these funds is to pool a portion of local tax and other revenue from affluent neighbourhoods for spending onto deprived and under developed locations. In some instances, the federal government contributes a matching grant to equalisation funds on the basis of total accumulated sum of local units.