Islamabad (HRNW)- The World Bank, in its latest “Strengthening Fiscal Federalism” report, has revealed significant inequalities in the distribution of development and financial resources between Pakistan’s provincial capitals and other districts, raising concerns over the impact on human development and infrastructure.
According to the report, the disparity is most severe in Balochistan, where Quetta receives 475 percent more government spending per capita than other districts. In Punjab, Lahore receives 440 percent more, Peshawar in Khyber Pakhtunkhwa receives 335 percent more, while Karachi in Sindh receives 178 percent more funding per capita than other districts.
The World Bank noted that although provincial resources increased after the implementation of the Seventh National Finance Commission (NFC) Award in 2010 and the spending gap narrowed compared to 2009, provincial capitals continue to receive a disproportionately large share of public resources.
The report stated that in Balochistan, Quetta receives nearly five times more resources per person than other districts, while many remote areas continue to face poverty, underdevelopment, and limited employment opportunities.
According to the World Bank, district budget allocations are often determined by factors other than socio-economic needs, poverty levels, education, healthcare, and infrastructure requirements. As a result, relatively prosperous districts continue to receive greater funding, while underdeveloped districts fall further behind.
The report also highlighted a decline in the financial role of local governments. Their share in total government expenditure has fallen from around 10 percent in 2005 to between 4 and 7 percent in 2024, while Provincial Finance Commissions remain inactive in most provinces despite constitutional requirements.
The World Bank further questioned the effectiveness of increased spending in the education and health sectors, noting that Khyber Pakhtunkhwa achieved comparatively better education outcomes despite lower expenditure, whereas Sindh and Balochistan experienced declining school enrollment and literacy rates despite higher spending.
Support independent journalism and human rights reporting by making a donation: www.hrnww.com/?page_id=1083
