ISLAMABAD: President Asif Ali Zardari on Monday signed the Islamabad Local Government Ordinance into law, formally enforcing a new local governance framework for the federal capital.
The ordinance provides for the creation of three town corporations in Islamabad, each corresponding to one of the city’s three National Assembly constituencies. As a result, local administration will operate through these new bodies to strengthen grassroots governance.
Each town corporation will be headed by a mayor and supported by two deputy mayors, ensuring a structured leadership model at the municipal level.
The federal government will determine the number of union councils within Islamabad. Under the new framework, every union council will consist of nine general councillors along with four seats reserved for specific categories, in line with representation requirements.
The ordinance further states that all corporations established under this system will serve a four-year term, setting a fixed tenure for local representatives and providing continuity in municipal administration.
Earlier, Prime Minister Shehbaz Sharif, chairing the cabinet session, highlighted economic stabilisation and ongoing reforms as central priorities for the government. He noted that growth recorded in the first quarter of the current financial year demonstrates renewed confidence in the economy.
“We have moved from the edge of default toward steadier footing,” the prime minister said, while reaffirming the government’s commitment to restructuring loss-making state-owned enterprises.
The premier also described the privatisation of a majority stake in Pakistan International Airlines (PIA) as a landmark development. He said 75 percent of PIA shares were sold through a transparent bidding process, which will help limit losses at state-owned companies and restore fiscal space.
Shehbaz Sharif further briefed the cabinet on his recent diplomatic engagements, including productive meetings with UAE President Sheikh Mohamed bin Zayed Al Nahyan and Saudi Crown Prince Mohammed bin Salman, focused on economic and strategic cooperation.
Cabinet endorses legislative and economic measures
During the session, ministers formally ratified decisions of the Cabinet Committee for Legislative Cases from December 3 and 30, 2025, including proceedings related to the Islamabad Capital Territory Local Government (Amendment) Ordinance. The government also approved resolutions from the Economic Coordination Committee’s August 26, 2025 meeting, such as electricity relief measures and the amended Off-Grid (Captive Power Plants) Levy Act 2025. These decisions facilitate third-party gas sales to off-grid captive power producers under a revised legal framework.
Sources confirmed that the Punjab local government model will guide elections under the new Islamabad ordinance, reflecting the government’s intent to strengthen governance structures ahead of upcoming polls.
