What happened

According to a report published by Dawn, the World Economic Forum's Centre for Regions, Trade and Geopolitics has recommended that Pakistan redesign its administrative structure to enhance decentralization and governance. With Pakistan's population projected to potentially reach 265 million by 2030, the forum indicated that the country's existing institutional layout no longer aligns with the growing scale of its society.

Key facts

  • Reorganisation Options: Dawn reported that a modest reform model could split each existing province into four, creating 16 first-tier governments and reducing the average population per unit from roughly 60 million to 15 million. Other scenarios suggest expanding to 23–25 units based on geography or population, or creating over 30 units from existing administrative divisions.
  • Revenue Challenges: In 2024–25, provincial tax collection generated Rs983 billion, representing under 0.9% of GDP. While agriculture provides 24% of value added, its effective tax rate is estimated by the IMF at just 0.3%, keeping yields low even after tax rate increases in 2025.
  • Regional Disparities: Administrative scale varies widely, from Lahore district with roughly 13 million residents to Harnai district in Balochistan with 128,000.
  • Social Development Gaps: A Planning Commission evaluation found that none of the 134 districts assessed reached the highest performance category for education. Nationally, 28% of children aged 5 to 16 are out of school, ranging from 21% in Punjab to 45% in Balochistan.
  • Historical Context: Past decentralization efforts mentioned include the 18th Constitutional Amendment and the seventh National Finance Commission award.

Why it matters

As highlighted by Dawn, bringing decision-making, budgets, and accountability closer to citizens is seen by the forum as vital for managing rapid urbanization, youth employment demands, water stress, and flood hazards. However, the forum warns that simply adding administrative units without building capable institutions, ensuring transparent fiscal transfers, and strengthening local tax collection could lead to fragmented and ineffective governance.

📰 Read the Original Report

Source: Dawn - Home · Published October 10, 2026 · Photo by USDAgov via Openverse