Support to Local Governance

Project description 

Title: Support to Local Governance (LoGo II) Programme
Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ)
Country: Pakistan
Lead executing agency: Economic Affairs Division
Overall term: 2020 to 2022


In 2010, the 18th amendment to the Pakistani constitution transferred a wide range of functions from the federal to the provincial level. By 2013, new Local Government Acts (LGAs) were enacted in the provinces of Khyber Pakhtunkhwa (KP) and Punjab. Subsequently, under the Local Government reform initiative of the Pakistani Government in 2019, fundamental adjustments to the LGAs in both KP and Punjab were introduced. The new legislation transferred the responsibility of many government services to the sub-district or town/tehsil level. However, Pakistan faces tough challenges ensuring the smooth delivery of many essential public services through local governments due to very limited own-source revenue and an annual budget deficit as a consequence. Moreover, political participation of citizens in local governance is limited. These factors hamper the capacity of the local governments to provide quality public services.


The local governments in Khyber Pakhtunkhwa and Punjab have the regulatory, personnel and financial prerequisites for the effective delivery of public services.


Support to Local Governance (LoGo II) Programme supports the KP and Punjab provincial governments in enhancing the political participation of the citizens and improving the performance of local governments to effectively provide local services to citizens. It supports the policy reform process and the institutional capacity development of local governments, advises the provincial tax departments and local governments to improve domestic resource mobilisation, and aims at improving public service delivery by enhancing citizen engagement. 

The programme provides technical support to the local government departments and other relevant institutions in both provinces, to develop or revise the regulations in view of the new laws on local governance with the aim to improve service delivery. It also supports the capacity building of the elected representatives as well as the local government officials on the new local governance laws with special consideration given to the newly merged areas. It does so by developing new and innovative approaches for capacity development.

To enhance the provincial own-source revenue and improve domestic resource mobilisation, LoGo II supports the excise and taxation departments and the local government departments in both KP and Punjab to bring property tax reforms. It also supports the local government departments and municipal administrations in developing models for improving municipal revenues. Moreover, it supports inter-provincial exchange between the provincial revenue authorities to discuss and revise the regulatory framework of the Sales Tax on Services.

To improve citizen engagement in the public service delivery, LoGo II supports dialogue forums for close collaboration between the elected representatives and the administrative staff. It also supports information and awareness campaigns on the citizens’ Right to Services and Right to Information, with a special focus on the communication needs of the marginalised population; particularly women and youth.

The implementing partners of LoGo II include the local government departments and revenue authorities as well as excise and taxation departments, the KP and Punjab Information Commissions and the Right to Services Commissions of both the provinces.