Disparities in Spending Across Major Cities Revealed by World Bank Report
A recent report by the World Bank has highlighted significant discrepancies in expenditure between provincial capitals and other districts in Pakistan. The report indicates that Quetta has been receiving 475% more funds per person, while Lahore has seen a 440% increase compared to other districts within the same provinces. This widening gap underscores the growing inequality in human and infrastructure development.
The study, titled Strengthening Fiscal Federalism, shows that the spending gap per person between provincial capitals and other districts is relatively smaller in Khyber Pakhtunkhwa, where Peshawar received 335% more per person funding. Karachi, the largest metropolitan area in the country, received 178% more funds than other districts, with the lowest disparity among the cities analyzed.
Despite the surge in provincial shares following the 7th National Finance Commission award in 2010, the report reveals a persistent inequality in human and infrastructure development. While the gap in real per capita spending between provincial capitals and other districts has narrowed since 2009, provincial capitals continue to absorb a disproportionate share of resources.
In Quetta, per person spending stands at Rs57,000, significantly higher than the Rs12,000 allocated to other districts within the same province. Similarly, in Peshawar, per capita spending is Rs35,000 compared to Rs10,000 in other districts.
Lahore, as Pakistan's second most populous city, has a per person spending of Rs31,000, in stark contrast to the Rs7,000 allocated to other districts. Notably, per capita spending in Lahore was as high as Rs67,000 in 2009, while other districts received only Rs5,000. Karachi, the most populated city, has a per capita spending of Rs25,000 compared to Rs14,000 in other districts.
The disparity is particularly pronounced in Balochistan, where Quetta receives five times more per capita spending compared to other districts. This imbalance is attributed to underdevelopment and a lack of job opportunities, which are believed to be contributing factors to insurgency in the region.
The report further highlights the lack of a clear connection between spending and socioeconomic needs, which may be hindering the quality and efficiency of provincial spending on essential services such as healthcare and education. Despite increased spending, indicators in certain provinces have worsened, raising concerns about the effectiveness of resource allocation.
The World Bank emphasizes the importance of addressing these disparities to promote more equitable development across all regions of the country.
