Cost of Creating New Provinces in Pakistan Could Reach Rs730 Billion Annually

ISLAMABAD: A recent report from a think tank has revealed that the financial implications of creating new provinces in Pakistan could be significantly higher than previously anticipated. The Policy Research Institute of Market Economy estimates that establishing two additional provinces in Punjab alone could increase annual recurring expenditures by Rs47 billion to Rs57 billion. If all 30 divisional units in the country were to be converted into provinces, the total cost could soar to between Rs610 billion and Rs730 billion.

The report highlights that each new province would necessitate a comprehensive administrative and political framework, including the appointment of a governor, chief minister, assembly, secretariat, and high court. The ongoing salaries, operational costs, and overheads associated with these structures would place a considerable strain on the national budget, diverting funds away from essential development projects.

This financial analysis challenges the prevailing notion that political and administrative restructuring is a cost-effective means to enhance government responsiveness. The findings suggest that the creation of new provinces may not only be politically motivated but also financially burdensome, raising concerns about the sustainability of such initiatives in the long term.

As discussions around provincial restructuring continue, stakeholders are urged to consider the fiscal realities outlined in this report. Future debates may focus on finding a balance between administrative efficiency and financial viability, with potential meetings scheduled to address these critical issues.