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Fiscal decentralisation and its effects on the health sector in Pakistan


  • Reayat, Nauman
  • Ahmad, Iftikhar
  • Khalil, Jehanzeb
  • Rahim, Tariq


Education and health sectors are known to have massive impact on the quality of human life. In this context, the health sector is discussed in this study to analyse the impact of fiscal decentralisation on basic health infrastructure in Pakistan. Provincial datasets (1980-2001) from three provinces were used for the analysis of provincial health indicators. It was learnt that the health sector remained neglected both at the national and provincial level. The provincial analysis suggests that federal transfers improved hospital beds availability in the economically active provinces, which were presumably more efficient. Provincial autonomy, on the other hand, failed to play a role in the improvement of the health sector. The analysis highlights the social implications of federal transfers. Differences in results for economically distinct provinces hint towards the efficiency aspect of resource utilisation.

Suggested Citation

  • Reayat, Nauman & Ahmad, Iftikhar & Khalil, Jehanzeb & Rahim, Tariq, 2014. "Fiscal decentralisation and its effects on the health sector in Pakistan," Economics Discussion Papers 2014-16, Kiel Institute for the World Economy (IfW).
  • Handle: RePEc:zbw:ifwedp:201416

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    More about this item


    fiscal decentralisation; social implications; healthcare structure and financing;

    JEL classification:

    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • H39 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Other
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • I19 - Health, Education, and Welfare - - Health - - - Other

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