In 2000, the Government of Pakistan designed a new devolution;'financial resources and responsibilites'. This plan abolished the earlier second-level division and merged the five districts of Karachi into a Karachi DIstrict. When the devolution plan was implemented in 2001, this district officially became a City District, with the City District Government of Karachi handling its government, Karachi now has a three-tier federated system, formed by:
- The City Disctrict Government Karachi (CDGK)
- Town Municipal Administrations
- Union Council Administrations
The City-District of Karachi is divided into eighteen towns governed by elected municipal administrations responsible for infrastructure and spatial planning, development facilitation, and municipal services (water, sanitation, solid waste, repairing roads, parks, street lights, and traffic engineering), with some functions being retained by the CDGK. The towns are sub-divided into 178 localities governed by elected union councils (UC's),which are the core element of the local government system. Each UC is a body of thirteen directly elected members including a Nazim (mayor) and a Naib Nazim (deputy mayor).In the local body elections of 2005, Syed Mustafa Kamal was elected City Nazim of Karachi to succeed Naimatullah Khan & Nasreen Jalil was elected as the City Naib Nazim. Mustafa Kamal was the provincial minister for information technology in Sindh before assuming office as the city's mayor. Mustafa Kamal is advancing the development and has been actively involved in maintaining care of the city's municipal systems.