IN the 1990s, Pakistan stood among South Asia’s wealthiest nations. Today, it ranks among the poorest. In 1995, Pakistan outperformed India and Bangladesh on the UN Human Development Index but now trails both by wide margins. This alarming decline points to a governance system plagued by dysfunction.
Provincial governments, responsible for healthcare, education, law enforcement and urban services, have consistently underperformed. Pakistan’s healthcare system paints a grim picture: the second-highest infant mortality rate globally, 40% of children suffering from stunted growth and widespread anemia among women and children. Education is equally dire, with 78% of ten-year-olds unable to read simple sentences, 26 million children out of school and poor academic standards nationwide.
In law enforcement, inefficiency and corruption have fostered public mistrust, while urban services are in shambles. Karachi residents lack access to piped water, Lahore faces hazardous air quality and garbage collection is virtually absent outside elite areas. Despite receiving 12,000 billion rupees annually, provincial governments squander funds on wasteful expenditure, neglecting essential public services.
The federal government fares no better. Pakistan’s electricity and gas rates are among the highest globally, burdening households and industries. State-owned enterprises like PIA and Pakistan Railways are financial sinkholes, incurring massive losses and requiring unsustainable subsidies. For instance, PIA reported an 88-billion-rupee loss in 2022, while the railways drain taxpayer money despite declining passenger numbers. This systemic failure stems from a governance model that emphasizes bureaucracy over results.
To address these challenges, bold reforms are essential. Governance must be decentralized, transferring responsibilities such as education and sanitation to district administrations, while health, policing and infrastructure are managed at the divisional level. Federal funds should flow directly to districts and divisions, bypassing provincial governments to enhance accountability. Provincial and federal governments should streamline operations, reducing ministries and privatizing state-owned enterprises like PIA and Pakistan Railways for efficiency.
Tax reforms are critical to easing the burden on citizens. Lowering income and sales taxes and reducing energy rates will provide relief to households and boost industrial growth. In education, establishing school boards, providing free meals for underprivileged children and offering scholarships can improve outcomes. For example, if Balochistan halved its 900-billion-rupee annual expenditure, it could distribute 15,000 rupees monthly to each family, fostering economic stability and reducing unrest.
—The writer is contributing columnist, based in Turbat, Balochistan.
