Muzaffarabad, AJK (Pakistan administered Kashmir) – The Azad Jammu and Kashmir (AJK) Legislative Assembly has passed a law transferring full authority over the identification and allocation of local development funds to elected members of the Assembly, effectively sidelining around 3,000 elected local councilors.
This legislation comes at a time of heightened tensions between India and Pakistan in South Asia, with looming threats of conflict adding to the region’s precarious security situation. The Assembly, originally convened on Wednesday to address regional tensions, instead pivoted to passing this contentious law regarding the control of local government funds.
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The new law overturns a prior ruling by the AJK High Court, issued on February 19, 2025, which directed that development funds should be utilized through elected local representatives as per the 1990 Local Government Act. With this legislation, all local government schemes will now fall under the direct purview of Assembly members, leaving local councilors effectively powerless in the developmental process.
This decision has been widely criticized by local government representatives and civil society organizations, who see the law as a major setback for grassroots democracy in Pakistan-administered Kashmir. “This move centralizes power in the hands of a few and opens the door to corruption,” said a spokesperson from a coalition of local councilors.
Previously, funds were spent through Assembly members without a legal framework. The new law, however, formalizes this practice, granting lawmakers legal authority over development funds. Critics argue that this shift undermines the very essence of local governance and accountability, which are cornerstones of democracy.
The controversial law garnered unanimous support from all parties within the coalition government, including Pakistan Tehreek-e-Insaf’s (PTI) forward bloc, Pakistan Muslim League-Nawaz (PML-N), and Pakistan People’s Party (PPP). Ironically, PTI, which has traditionally championed the local government system, aligned with the legislation, drawing criticism from its own supporters.
For AJK, which receives an annual development grant from Pakistan, the stakes are significant. This year, the budget includes a total allocation of PKR 28 billion, with PKR 4 billion set aside for local government. Prior to the High Court ruling, Assembly members had already spent approximately PKR 500 million. The court’s intervention temporarily paused these expenditures, but the new law restores and formalizes their control over local government schemes.
Civil society organizations and local governance advocates have denounced the legislation as a regressive step that concentrates power in the hands of the political elite. “This law not only sidelines elected local representatives but also creates a legal pathway for corruption,” said a senior member of Muzaffarabad’s civil society forum.
The move is perceived as a deliberate effort by the political elite to retain control over development funds, bypassing the transparency and accountability mechanisms that local governments are better positioned to provide. The new law, they argue, undermines the principles of decentralized governance and shifts focus from serving the people to serving political interests.
Prime Minister Chaudhry Anwarul Haq had earlier stated that the Assembly session would remain ongoing to discuss the heightened tensions in the region. However, after passing the controversial law, the session was abruptly adjourned until May 8, leaving many to question the government’s priorities during a time of regional crisis.
Political analysts have criticized the coalition government for exploiting the tense regional situation to push through legislation that serves their interests. “The government has used the ongoing regional crisis as a cover to prioritize control over funds at the expense of public representation and transparency,” noted a leading political analyst in Muzaffarabad.
The passage of this law highlights a broader issue in Pakistan-administered Kashmir: the erosion of democratic institutions in favor of centralized power. While the legislation may provide Assembly members with greater control over development funds, it comes at the expense of local democracy and governance.
In a region already grappling with political and economic challenges, this centralization of power risks alienating the very people these funds are meant to serve. Local councilors, who represent the grassroots and are directly accountable to their communities, have been rendered irrelevant in the decision-making process.
As Pakistan-administered Kashmir continues to face internal and external challenges, the need for transparent, democratic governance has never been more critical. The sidelining of local government representatives not only weakens the democratic fabric of the region but also undermines the trust of ordinary citizens in their political institutions.
Civil society groups are calling for a review of the legislation and demanding the restoration of local government representatives’ authority over development funds. “True democracy lies in empowering local voices, not silencing them,” said a prominent activist in Muzaffarabad.
The question remains: will the elected Assembly members prioritize the needs of the people they serve, or will this law further entrench the culture of political opportunism at the expense of democratic values?
The passage of this controversial law marks a significant turning point for governance in Pakistan-administered Kashmir. It is a test not only of the region’s commitment to democracy but also of its leaders’ willingness to prioritize the collective good over political expediency.
As civil society and local representatives push back against this legislation, the coming weeks will reveal whether Pakistan-administered Kashmir can uphold its democratic ideals or whether it will succumb to the centralization of power. For now, the sidelining of 3,000 local councilors stands as a stark reminder of the challenges facing democracy in the region.
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