This article attempts to examine the relationship between decentralization and service delivery through an analysis of the performance of local governments established under the "Khyber Pakhtunkhwa Local Government Act 2013" with respect to the delivery of basic social services. While exponents of decentralization often argue that the devolution of powers to the lower levels of government improves public service delivery through equity, productive efficiency, and cost recovery, the findings of this study evince that the effects of decentralization on service delivery are often contingent on the social and political dynamics prevalent within a given context.

This paper traces the working of various local governments within the Khyber Pakhtunkhwa province of Pakistan in terms of efficiency while providing health and educational facilities. Only those districts of Khyber Pakhtunkhwa having a population of at least one million, were taken into account. The performance of six district local governments in the field of education and health was thoroughly analyzed. The main focus was to assess whether local governments were efficient in the provision of the required services or otherwise. In the context of this study, local governments were perceived as firms, each aiming at the efficient provision and welfare of their respective communities / localities. Annual time-series data for the period 2004 to 2015 was taken. The study revealed the performance and efficiency of each of the selected district governments. The study also confirmed the validity of the Tiebout Hypothesis in terms of the local governments of KP in relevance to the provision of health and educational services. The district government primarily revolves around the needs and aspirations of the common people. This system can perform better if properly implemented and monitored in light of the gross root level input.

This research investigates the role of local government institutions in promoting community development in Bahawalpur division from 2001 to 2018. The provision of municipal amenities is crucial for community growth, and local governments are expected to play a significant role in enhancing social, political, and cultural development. However, financial constraints, lack of education, community participation, and infrastructural development hinder their effective functioning. The study used statistical sampling techniques and analyzed the data using regression, and correlation analysis. The results show a positive trend in the contribution of local government towards community development, with a significant positive relation between the local government budget, community participation, education level, and infrastructure development. The study suggests that local governments should prioritize allocating sufficient budgets for community development programs and encourage community engagement in decision-making processes. Overall, the study highlights the significance of local government institutions in promoting community development in Bahawalpur division.