The debate on new provinces and administrative units should not be viewed primarily through a political lens. It must be approached from an “economic, administrative and development perspective, with the central question being: How can we address deprivation, ensure equitable resource allocation, improve governance and create economic opportunities for our people?Pakistan’s population has increased dramatically, while disparities in development, infrastructure, employment, education, healthcare and public services remain a serious concern.
The real issue is therefore not simply the number of provinces, but whether our existing governance structure is delivering fair access to resources and opportunities to every region and citizen.If certain areas have remained deprived for decades, the answer cannot simply be to continue with the same model. There must be a serious review of resource distribution, development allocations, fiscal transfers and decision-making authority so that less-developed regions receive the investment necessary to catch up.The discussion should therefore focus on the “economic cost of deprivation versus the cost of administrative restructuring”.
We should assess how much economic potential is being lost because people and businesses in underserved regions lack adequate infrastructure, education, connectivity, utilities, healthcare and access to government institutions.At the same time, the creation of new provinces under the existing governance model may not automatically solve these problems. As highlighted in recent analysis, additional administrative structures can create fiscal and institutional costs, while stronger and adequately resourced local governments can bring decision-making closer to citizens and improve service delivery.However, new provinces and empowered local governments should not necessarily be treated as mutually exclusive options. “The objective should be to design a governance model that genuinely devolves political, administrative and financial authority and ensures that resources reach the communities where they are needed most”.
We have seen through systems such as the motorway network that when there are clear rules, effective institutions and accountable enforcement, citizens respond positively. Better governance can create discipline, improve service delivery and build public confidence.Therefore, the debate must move beyond talk shows and political slogans. It should be taken to the Parliament, Senate, provincial assemblies and all relevant stakeholder forums, supported by economic studies, fiscal analysis, demographic data and public consultation.
Before deciding whether Pakistan needs new provinces, we should answer some fundamental economic questions:- Which regions are suffering the greatest levels of economic deprivation?- Are existing fiscal and development allocations equitable and needs-based?- How can more resources reach underserved districts?- What governance model can deliver better education, healthcare, infrastructure and employment?- How can local governments be made financially and administratively empowered?- Would new provinces improve economic productivity, investment and job creation, or simply increase administrative expenditure?The business community is particularly concerned with policy certainty, efficient administration, predictable taxation, infrastructure, energy, connectivity and an environment conducive to investment and exports.
Therefore, this should ultimately be an economic debate, not merely a political debate about boundaries.If new provinces can demonstrably reduce deprivation, improve resource distribution, strengthen governance and unlock economic potential, they deserve serious consideration. If empowered local governments and better fiscal distribution can achieve the same objectives without creating additional administrative costs, that option must also be examined.The objective should not be more provinces or fewer provinces. The objective should be better governance, equitable resource allocation, economic opportunity and inclusive development.“Pakistan needs a governance system that brings the state closer to the citizen, resources closer to the communities that need them, and economic opportunities closer to its people”.
Usman Shaukat President Rawalpindi Chamber of Commerce & Industry (RCCI)
