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New provinces will cost more than they deliver

The Express Tribune • • 1 min read

New provinces will cost more than they deliver

A Prime Institute report cited by The Express Tribune argues that creating additional provinces could put further pressure on Pakistan’s public finances, particularly if the new units are small. It compares a six-province plan, which would split Punjab into three, with a proposal to turn existing administrative divisions across the country into 30 provinces.

Under the 30-unit plan, the report says 11 proposed provinces would receive less than Rs150 billion each, while the core provincial government would consume around 49% of Loralai’s allocation, 45% of Zhob’s and 37% of Rakhshan’s, even using a low recurring-cost estimate. It warns that such institutional spending could leave less for education, health, infrastructure and development, and suggests examining stronger local governments as an alternative. The authors call for formal fiscal costing before any restructuring.

At a glance

  • The report compares proposals for six provinces and 30 provinces.
  • Eleven proposed units in the 30-province scenario receive less than Rs150 billion each.
  • Core government costs would absorb 49% of Loralai’s allocation under a low-cost estimate.

Originally reported by The Express Tribune

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