In August 2000, local government reforms abolished the "Division" as an administrative tier and introduced a system of local government councils, with the first elections held in 2001. Following that there was radical restructuring of the local government system to implement "the principle of subsidiarity, whereby all functions that can be effectively performed at the local level are transferred to that level". This meant devolution of many functions, to districts and tehsils, which were previously handled at the provincial and divisional levels. At abolition, there were twenty-six divisions in Pakistan proper - five in Sindh, six in Balochistan, seven in Khyber-Pakhtunkhwa and eight in Punjab. Abolition did not affect the two divisions of Azad Kashmir, which form the second tier of government.