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New Provinces within Pakistan? A Fiscal Federalism Perspective

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  • Chohan, Usman W.

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.

Suggested Citation

  • Chohan, Usman W., 2026. "New Provinces within Pakistan? A Fiscal Federalism Perspective," SocArXiv bxfj9_v1, Center for Open Science.
    • Handle: RePEc:osf:socarx:bxfj9_v1
    DOI: 10.31219/osf.io/bxfj9_v1
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    References listed on IDEAS

    as
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