New provinces debate must prioritize economic development: RCCI

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RCCI President Usman Shaukat calls for economic studies, fair resource distribution and stronger governance before creating new administrative units.

The debate over new provinces in Pakistan should be driven by economic development, administrative efficiency and equitable resource distribution rather than political considerations, Rawalpindi Chamber of Commerce and Industry (RCCI) President Usman Shaukat said on Sunday.

In a statement, Shaukat said the discussion should focus on finding practical ways to reduce regional deprivation, improve governance and expand economic opportunities. He stressed that the primary objective should be to bring government services, resources and investment closer to citizens.

Regional Disparities Raise Governance Concerns

The RCCI president noted that Pakistan’s rapidly growing population has placed additional pressure on infrastructure and public services. Significant differences remain between regions in employment, education, healthcare, connectivity, utilities and other essential facilities.

According to Shaukat, the issue is therefore not simply about increasing or reducing the number of provinces. Instead, policymakers should determine whether the current administrative structure is ensuring fair access to resources, investment and economic opportunities across the country.

He called for a comprehensive review of development allocations, fiscal transfers, resource distribution and decision-making powers, particularly for regions that have remained underdeveloped for decades.

Economic Cost of Deprivation Must Be Examined

Shaukat suggested that policymakers should compare the economic cost of continued deprivation with the financial implications of administrative restructuring. He said inadequate infrastructure, weak connectivity, limited utilities and insufficient access to education and healthcare could prevent underserved regions from reaching their economic potential.

He also cautioned that establishing new provinces would not automatically solve these problems. Empowered and adequately funded local governments could provide another way to decentralize decision-making and improve public service delivery.

Evidence-Based Debate Needed

The RCCI president urged policymakers to take the discussion beyond political statements and television debates and present it before Parliament, the Senate, provincial assemblies and other relevant forums.

He recommended using economic studies, fiscal assessments, demographic data and public consultation to determine the most effective governance model.

Shaukat added that businesses require policy stability, efficient administration, predictable taxation, reliable energy, infrastructure and connectivity to support investment, exports and employment.

He said new provinces should receive serious consideration if they can demonstrably reduce deprivation, improve resource distribution and unlock economic potential. However, stronger local governments and improved fiscal distribution should also be assessed if they can deliver similar results at lower administrative costs.