For just a moment, let us take a break from being the daughter or son of Punjab, Sindh, Khyber Pakhtunkhwa, Balochistan or even Gilgit-Baltistan or Azad Jammu and Kashmir.
For a moment, think as a child of Pakistan. Imagine a place so deprived that it would take 600 years to reach a decent level of development, while another district could get there in just six years. This is the stark reality that is seen when comparing the state of development of districts across Pakistan. Such a staggering contrast under the same flag shows how badly our current system fails to uplift all regions equally. It is a reminder that, unless we change course, some citizens will remain stuck in poverty while others leap ahead.
For decades, the National Finance Commission (NFC) Award has been touted as the fix for regional inequalities. Yet Balochistan and parts of KP still lag far behind Punjab, and rural Sindh remains far behind urban Karachi. The NFC’s one-size-fits-all approach has clearly failed to bridge these gaps. The NFC Award showered provinces with cash, but improvements on the ground were scarce. The formula focused on splitting money, not on outcomes. Provinces, flush with funds, often lacked the capacity or incentive to spend wisely – no wonder so little improved.
It is time to ditch the cookie-cutter model. Pakistan needs bespoke solutions for each district’s unique reality. Some districts are on the cusp of progress – just a little push could bring them up to par. We should prioritise those near convergence, which can reach developed status quickly with an extra boost. Conversely, throwing money at lagging districts without fixing their fundamentals is futile. Funding inefficient local administrations will only waste resource; we must fix their capacity first. In practice, this means cleaning up local governance – putting honest officials in place and cutting corruption – so public funds truly serve the people.
Development aid is wasted if bullets are flying. Many of Pakistan’s poorest areas are also its most fragile, plagued by conflict and lawlessness. Pouring money into these districts won’t help if schools can’t open and roads can’t be built safely. In such places, law and order must come before new projects. In parts of Balochistan or the ex-Fata regions, it means little if people fear for their lives. Stabilising these areas through better policing and conflict resolution is essential for any progress. Security is the foundation of development.
Not all change needs to come from Islamabad. Often, the social capital in communities – local networks of trust and cooperation – is a game-changer. Districts with vibrant community organizations or civil society organisations often do more with less. A strong social fabric can lighten the state’s load, as locals organise basic services themselves. The government should back this by partnering with community groups and the private sector. When citizens have a stake in projects, they ensure delivery and upkeep.
Many ‘poor’ districts are rich in resources – minerals, fertile land, tourism potential – but see little benefit. We must help districts tap into their own endowments with technical support, infrastructure and incentives so local industries can flourish. If a coastal area has fisheries, assist it in developing a seafood industry; if a mountainous region has tourism appeal, build roads or funiculars to unlock its potential. At the same time, provinces and districts should boost local revenue generation rather than relying on federal handouts. Let them keep a hefty share of any new taxes they collect to encourage their tax base to grow. That means fixing the tax imbalance: sales tax on goods – a major cash cow – should go to provinces and property/land taxes to district governments. With real revenue power, local governments will have skin in the game. They’ll be more accountable and eager to spur economic activity when they directly benefit from growth. This is true fiscal empowerment.
A glaring flaw in the status quo is how funds are disbursed. Blanket formula grants send money down without demanding results. We should replace that with outcome-based grants – funding tied to specific goals like higher literacy or lower infant mortality. If money is conditional on performance, there’s a strong incentive to achieve targets. This would inject accountability into a system that currently rewards complacency. Targeted, results-linked funding will do far more good than dumping cash into general budgets and hoping for the best.
Breaking the chains of disparity requires a fundamental rethink of how we govern and fund our districts. The old ways haven’t worked, so bold reform is needed – targeting investments for impact, fixing governance and security, empowering local initiative, and linking money to results.
Every district deserves a fair chance, not MPA and MNA schemes. We must not accept that a child’s future depends on the accident of birth. By remaking how we share and spend resources, we can ensure no part of Pakistan is left behind – before these gaps widen beyond repair.
The writer is a developmentprofessional working on intersectional issues in society, economics andclimate. A former World Bank staff member, he is currently running his own social impact advisory, Reenergia.