Islamabad LGs: Roles of MCI and CDA Explained

If the local government elections are held in Islamabad in February 2026, the federal capital will elect the Metropolitan Corporation Islamabad (MCI) for the second time since 2015. The MCI serves as the second tier of local government in the two-tiered system under the Islamabad Capital Territory Local Government Act, 2015 (ICTLGA).

Before indulging in the details of MCI’s job description, let us first understand how MCI functions in the absence of the elected local government.

Who Manages Municipal Affairs in the Absence of an Elected MCI?

There has been no elected MCI since February 2021, when the preceding Mayor and elected members completed their term. Section 29(3) of the ICTLGA provides that upon the expiry of the MCI’s term, the federal government may appoint an administrator to perform the functions of the local government until a newly elected body assumes office. Such an appointment is limited to a maximum period of six months. Since the expiry of the previous MCI’s term, the federal government has repeatedly appointed the Deputy Commissioner of Islamabad as the administrator for successive six-month terms.

How is MCI’s Scope Different from CDA?

Historically, most municipal functions in Islamabad were performed by the Capital Development Authority (CDA), which remains the primary body responsible for planning and development in the federal capital. However, since the enactment of ICTLGA, the municipal functions were transferred to MCI as the Act repealed Section 15-A of the CDA Ordinance, 1969, which had entrusted CDA with municipal functions.

Under the current legal framework, CDA continues to exercise authority over master planning and estate management for Islamabad. Although the CDA Ordinance allows it to involve local governments in preparing and executing development schemes such as public buildings, public transport, telecommunications, and community facilities in areas under their jurisdiction, however, this involvement is discretionary and not mandatory.

The statutory frameworks governing CDA and MCI provide overlapping roles with regard to markets and road maintenance, water supply, and building control. However, ICTLGA provides that MCI would perform its functions subject to the provisions of the CDA Ordinance.

What are the Functions of MCI?

The functions of the MCI are outlined in the Third Schedule of the ICTLGA. The law mandates the Corporation to implement and enforce municipal laws, rules, and bye-laws, particularly those related to urban management and public utilities.

These functions include managing municipal infrastructure and services such as water management, sewage treatment, solid waste management, street lighting, and slaughterhouses. The MCI is also responsible for disaster relief and emergency response, social welfare services, promotion of business activities, removal of encroachments, regulation of markets, and provision of cultural, heritage, recreational, and beautification initiatives.

Additionally, the MCI regulates the handling and trade of hazardous and dangerous materials, including timber, coal, heavy metals, and poisons, and oversees public services linked to such activities. The Corporation also regulates the affixing of signboards and advertisements, except in areas where this responsibility continues to be exercised by the CDA.

Interestingly, the ICTLGA mandates the MCI to maintain a comprehensive database and information system and to provide public access to information at nominal charges. However, it does not specify the nature or scope of information to be maintained.

What Taxes and Fees Can MCI Collect?

Unlike Union Councils, which have limited taxation authority, the ICTLGA grants the MCI broader powers to levy and collect approved taxes, fees, rates, rents, tolls, charges, fines, and penalties. However, these taxes have to be approved by the Federal Government.

These include water rates, drainage rates, conservancy charges, fees for approval and re-erection of building plans, charges for change of land use, slaughterhouse fees, taxes on professions, trades, callings, and employment, market and cattle market fees, toll taxes, parking charges, fees on the installation of telecommunication towers, and water conservation charges on buildings.