Report Suggests Restructuring Pakistan into Smaller Provinces to Improve Governance
ISLAMABAD — A recent report has outlined three possible ways to restructure Pakistan’s administrative divisions to improve governance, resource distribution, and public services.
The first scenario proposes creating 12 smaller provinces, each with a population of around 20 million. This would allow provincial budgets to reach approximately Rs994 billion.
Under the second scenario, Pakistan could be divided into 15 to 20 provinces, with populations ranging from 12 million to 16 million per province. Budget allocations in this setup would fall between Rs600 billion and Rs800 billion.
The third option is the most granular, suggesting 38 federal divisions, each serving about 6.3 million people.
Currently, Pakistan’s population of 241.5 million is concentrated in just four provinces, with an average provincial population exceeding 60 million. This uneven distribution has created significant disparities in resource allocation, the report notes. Punjab, for instance, receives Rs5,355 billion in budget allocations, while Balochistan is allocated only Rs1,028 billion.
The study also highlights stark differences in poverty rates across the country: 30 percent in Punjab, 70 percent in Balochistan, 48 percent in Khyber Pakhtunkhwa, and 45 percent in Sindh. On average, 40 percent of the population across provinces lives below the poverty line, a figure worsened by rising unemployment and educational inequality.
Experts argue that smaller provinces could better utilize budgets, reduce poverty, and create more job opportunities. The report further suggests that reforms in agriculture and property taxation could boost provincial revenue, potentially adding 1 percent to GDP from agriculture and 2 percent from property taxes.
Creating additional federal divisions could also help implement targeted economic policies, improve tax coordination between the federal and provincial governments, and ensure a fairer distribution of resources.
The report underscores the urgent need for administrative reform to address economic and social inequalities and improve governance across Pakistan.
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