A New Vision for Governance in Pakistan’s Future

Pakistan stands at a critical juncture where the need for re-engineering governance has become more evident than ever. The country faces persistent challenges that require thoughtful solutions to strengthen its foundation and improve the lives of its 240 million people. At the heart of these issues are governance difficulties that have deep roots, affecting various sectors and hindering progress. These challenges are not new, but their impact continues to grow, making it essential to address them with care and determination. One promising approach to tackle these issues is the introduction of smaller provinces, which could bring governance closer to the people and address regional disparities more effectively.

One of the most pressing concerns is the ongoing effort to improve tax collection. A significant portion of the economy remains undocumented, with estimates suggesting it is twice the size of the formal economy, equating to roughly 50 percent of the total economic activity. This situation presents a notable challenge, as the government relies on tax revenue to fund public services like healthcare, education, and infrastructure. With only about 1.1 million taxpayers registered out of a potential workforce of over 60 million, the tax-to-GDP ratio stands at around 9 percent, below the global average of 15 percent. This indicates room for growth in resource availability. Smaller provinces could help by enabling more localized tax systems tailored to regional economic patterns, encouraging compliance and bringing more activity into the formal fold.

The development indicators reflect areas for improvement. Pakistan ranks 140th out of 188 countries on the Sustainable Development Goals Index, showing that the country is working to catch up in achieving targets related to poverty, education, and environmental sustainability. Similarly, on the Human Development Index, it stands at 164th out of 191 countries, indicating opportunities to enhance life expectancy at 66.5 years, average schooling at 5.1 years, and per capita income of $1,824. Perhaps most noteworthy is the 139th position on the Global Hunger Index, where 42 percent of the youth experience stunted growth due to malnutrition, affecting over 10 million children under five. Additionally, only 38 percent of the population, or approximately 91 million people, has access to safe drinking water, a basic necessity that many are striving to attain. Smaller provinces could allow for more focused development efforts, addressing these gaps by tailoring solutions to local needs, such as improving water access in underserved areas.

These challenges are not isolated incidents but part of a broader pattern of longstanding issues that have evolved over time. The undocumented economy, for instance, reflects the difficulty in tracking and regulating a diverse range of businesses and livelihoods, especially in rural areas where traditional methods of income generation prevail, with over 60 percent of the population engaged in agriculture. This highlights the need for policies that can support communities and provide equal opportunities. The development rankings suggest that while progress has been made in some areas, the pace needs to accelerate to meet the needs of a growing population, which increases by about 2.4 percent annually. Smaller provinces could decentralize decision-making, ensuring that policies are more relevant to local conditions and fostering faster progress.

The impact of these governance challenges is felt across the nation. Limited tax revenue indicates a need for more resources to build schools, with 25 to 37 million children aged 5 to 16 out of school, and hospitals, with only 1,069 facilities nationwide, translating to 1 per every 142,000 individuals. The high rate of stunted growth among young people underscores the importance of better nutrition programs and healthcare access, while the lack of safe drinking water for 149 million people emphasizes the value of investing in clean water infrastructure. Smaller provinces could enhance resource allocation by focusing on regional priorities, ensuring that areas with the greatest needs, like those with high stunting rates, receive targeted support.

Addressing these structural areas calls for a collaborative approach that builds on existing strengths. The government has shown commitment to development through various initiatives, and the focus now should be on refining these efforts. Enhancing tax collection could start with simplifying the process for small businesses and offering incentives for those who join the formal economy, potentially adding 500,000 new taxpayers over five years. Smaller provinces could facilitate this by creating localized economic policies that resonate with regional businesses. At the same time, targeted programs to address malnutrition, affecting 10 million children, and water access for 149 million people can make a difference, drawing on local knowledge and community involvement to ensure success.

Improving development indicators will take time, but it begins with recognizing the current gaps and working systematically to close them. Education and health are key areas where investment can yield high returns, equipping the younger generation with the tools to contribute to the economy, especially with 64 percent of the population under 30 years old. Safe drinking water projects, even on a small scale reaching 10 million people annually, can prevent diseases and improve overall well-being, creating a ripple effect of positive change. Smaller provinces could streamline these efforts, allowing for more efficient delivery of services tailored to each region’s unique challenges.

The journey to re-engineer governance in Pakistan is about finding solutions that work for everyone. The challenges of an undocumented economy and development indicators are significant, yet they offer opportunities for progress. By focusing on practical steps like improving tax systems to reach a 12 percent tax-to-GDP ratio, investing in health and education to reduce stunting by 10 percent in five years, and ensuring water security for an additional 50 million people, the country can move toward a more stable and prosperous future. The introduction of smaller provinces could amplify these efforts by bringing governance closer to the grassroots level, ensuring that policies reflect the diverse needs of Pakistan’s regions.

Public awareness and participation are equally important in this process. When people understand the benefits of a stronger tax system or the importance of safe water, they are more likely to support initiatives that bring about change. Community-driven efforts can complement government programs, creating a sense of ownership and responsibility. This collective effort can transform structural areas into opportunities for growth and development, with smaller provinces fostering greater community engagement.

As Pakistan looks ahead, the focus must remain on building a governance system that is responsive and inclusive. The challenges are clear, from the undocumented economy affecting half the economic activity to development indicators impacting 240 million lives, but so is the potential for improvement. With thoughtful strategies and a commitment to progress, including the adoption of smaller provinces, the nation can address these issues step by step. The goal is not perfection overnight but steady advancement that lifts the quality of life for all citizens. This is a shared journey, and with continued effort, Pakistan can enhance its governance framework and lay a strong foundation for the future.