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Creating more provinces or creating more chaos

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wednesday

A politically sensitive debate has reignited in Pakistan over whether its four-province system can effectively govern a country of around 260 million people. The controversy over creating more provinces has generated confusion and revived settled issues. What is surprising is the rationale behind this move. When the country is already facing a difficult and turbulent economic and political situation, should the government pursue such an irritant and controversial issue amid economic instability and political polarization? One fails to understand why and by whom this debate has been initiated. If governance is the issue, all efforts should be made to improve it. If the government has failed to control law and order, curb corruption and improve citizens’ quality of life, is creating more provinces the answer? Has the present government calculated the additional administrative costs?

Pakistan’s provinces carry major service delivery responsibilities, yet provinces own-source revenue remains limited. In 2024-2025, provincial taxes brought in just PKR 983 billion, equivalent to less than 0.9% of gross domestic product. Meanwhile, agriculture which accounts for 24% of value addition but has historically yielded very little relative to the size of the sector. The International Monetary Fund estimates agriculture’s effective tax rate at just 0.3%, while agricultural income tax revenues have remained below expectations even after rates were increased in 2025.

For decades, provincial tax........

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