What is the Cost of Creating New Provinces in Pakistan

News Desk

ISLAMABAD: A recent report from the Policy Research Institute of Market Economy has quantified the financial implications of creating additional provinces in Pakistan, estimating that the annual recurring expenditure could increase by Rs47 billion to Rs57 billion if two new provinces are established in Punjab.

The total cost could escalate to between Rs610 billion and Rs730 billion if all 30 divisional units across the country are converted into provinces.

The report highlights that each new province would necessitate a comprehensive administrative and political framework, including the establishment of a governor, chief minister, assembly, secretariat, and high court.

The ongoing salaries, operational costs, and administrative overheads associated with these structures would significantly reduce available funds for development initiatives.

This financial analysis challenges the prevailing notion that political and administrative restructuring is a cost-effective strategy for enhancing government responsiveness.

The findings underscore a critical flaw in the argument for creating more provinces, revealing that such changes come with substantial fiscal responsibilities.

As the debate continues, stakeholders are urged to consider these financial implications seriously. Future discussions on provincial restructuring are expected to take place in upcoming legislative sessions, where policymakers will need to weigh the potential benefits against the significant costs involved.