Pakistan’s federal government continues to deny adequate funding to the country’s merged tribal districts, perpetuating decades of marginalization and underdevelopment. These regions continue to struggle with basic infrastructure and essential services, exposing the chronic disregard that has long defined federal policy toward peripheral areas. The neglect reflects not only budgetary shortfalls but deeper issues of political bias, institutional dysfunction, and misplaced priorities.
Khyber Pakhtunkhwa’s finance adviser, Muzzammil Aslam, recently exposed the scale of inequity in funding. The merged tribal districts were allocated Rs70 billion under the Public Sector Development Programme (PSDP), yet only Rs34 billion was actually disbursed. In comparison, Sindh received Rs47.1 billion, Gilgit-Baltistan Rs37 billion, and Pakistan-administered Jammu and Kashmir Rs45 billion. The KP government had to step in, spending Rs20 billion of its own funds on development and Rs40 billion on current expenditures for these districts—none of which the federal government has reimbursed.
This financial neglect persists even as Pakistan’s GDP has grown to Rs114 trillion, with projections to hit Rs129 trillion in the upcoming year. Despite this, the federal government allocated just Rs1 trillion for development spending nationwide. Notably, Rs120 billion of that came from savings due to the withdrawal of fuel subsidies, effectively reducing the actual PSDP to Rs880 billion.
The disparity is even starker when considering provincial allocations. Punjab’s development budget stands at Rs1 trillion, Sindh’s at Rs1.1 trillion, while KP has been left with just Rs433 billion. This year alone, KP faces a Rs300 billion shortfall in federal support. It has also been allocated Rs42 billion less under the National Finance Commission (NFC) Award, while the federal tax collection deficit is expected to reduce provincial transfers by another Rs90 billion.
Such budgetary imbalances raise serious questions about the federal government’s commitment to equitable development. The apparent preference for provinces aligned politically with the center points to a disturbing pattern of selective investment—undermining both constitutional mandates and national cohesion.
Beyond provincial comparisons, Pakistan’s overall infrastructure investment remains alarmingly low, at just 2–3 percent of GDP—far short of the estimated 10 percent needed to meet basic national needs. Federal contribution to development has shrunk to 21.4 percent, leaving provinces to shoulder more than two-thirds of the national development burden.
This crisis is not just fiscal—it is human. Arbitrary planning decisions reveal deeper institutional weaknesses. Two road projects in KP that were over 90 percent complete were suddenly removed from the PSDP, despite prior commitments to prioritize projects past 75 percent completion. This reflects not only inefficiency but also a disregard for rational planning and the public interest.
In remote regions such as Thorsay Bilamik Valley in Gilgit-Baltistan, the impact of this neglect is devastating. Residents lack mobile coverage, decent roads, healthcare, and adequate schooling. A single middle school serves a large population, forcing families to send children far from home, fracturing communities and limiting educational access. Women routinely face life-threatening childbirths due to the absence of nearby medical care. These are not isolated problems—they are systemic.
Infrastructure failures exacerbate these conditions. Pilgrims to religious sites must endure dangerous roads and prolonged travel, discouraging tourism and leaving emergency services unable to operate efficiently. Contracts for road construction have been awarded but remain dormant, with no visible progress—reflecting a culture of mismanagement, broken promises, and wasted public resources.
Meanwhile, the government’s spending priorities further highlight these contradictions. Pakistan’s defense budget in 2024 stood at $10.2 billion—more than ten times the $1 billion provided by the IMF’s Extended Fund Facility. This stark disparity raises troubling questions: Is international aid merely sustaining militarized statecraft while citizens remain deprived of basic services?
Education has fared no better. The “Uraan Pakistan” initiative originally allocated Rs65 billion to higher education, only to be slashed to Rs45 billion—without consulting provinces. This not only hinders human capital development but also reflects a broader disregard for inclusive growth.
Even as the government projects 4.2 percent GDP growth, it has axed 118 development projects, revealing a disconnect between optimistic forecasts and ground realities. For citizens in tribal and remote regions, these cuts translate into continued marginalization.
In the end, Pakistan’s development dilemma is rooted in decades of administrative neglect, political favoritism, and fiscal mismanagement. The federal government’s failure to prioritize inclusive development not only erodes public trust but threatens the social fabric of the nation. Without structural reform and a renewed commitment to equitable governance, Pakistan risks deepening divisions and allowing its most vulnerable regions to fall further behind.
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The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of Khaama Press. The publication provides a platform for diverse perspectives and encourages respectful, informed dialogue.
