New Provinces within Pakistan? A Fiscal Federalism Perspective

Usman W. Chohan

No bxfj9_v1, SocArXiv from Center for Open Science

Abstract: This paper examines the economic rationale for creating new provinces in Pakistan through the framework of fiscal federalism. It argues that Pakistan’s existing provincial structure contributes to administrative centralization, public value destruction, regional inequality, uneven public service delivery, and weak fiscal accountability. Drawing upon concepts of decentralization, subsidiarity, and competitive federalism, the study contends that smaller and more localized provinces may improve governance responsiveness, strengthen political inclusion, create public value, and promote region-specific economic development. The paper analyzes how provincial reorganization could encourage policy innovation, balanced urbanization, and more effective allocation of public resources while also addressing concerns relating to administrative costs, elite capture, and constitutional complexity. It concludes that carefully designed decentralization may strengthen both economic governance and federal cohesion in Pakistan.

Date: 2026-05-25
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Persistent link: https://EconPapers.repec.org/RePEc:osf:socarx:bxfj9_v1

DOI: 10.31219/osf.io/bxfj9_v1

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