How should Pakistan manage the equitable distribution of resources among different ethnic regions to address historical grievances and promote developments across the country?

Introduction

John Rawls wrote in A Theory of Justice (1971): "Justice is the first virtue of social institutions, as truth is of systems of thought." In a federation of many peoples, justice in the sharing of resources is the glue that holds the state together. Pakistan's Punjabis, Sindhis, Pashtuns, Baloch, Saraikis, Muhajirs, Gilgit-Baltistanis and others all need to feel that they receive a fair share of the country's wealth and opportunities. The separation of East Pakistan in 1971 showed the cost of ignoring such grievances. Pakistan must therefore manage resources through fair formulas, constitutional rights and genuine local ownership.

Overview

The One Unit scheme of 1955 merged the western provinces and ignored their distinct identities until it was dissolved in 1970. The 1973 Constitution created the National Finance Commission (Article 160) and the Council of Common Interests (Article 153), but for decades the NFC distributed revenue almost entirely by population, favouring Punjab. The 7th NFC Award (2009-10) introduced a multi-criteria formula and raised the provinces' share of the divisible pool to 57.5 percent, and the 18th Amendment (2010) devolved many subjects and gave provinces joint ownership of oil and gas. Even so, Balochistan, ex-FATA, interior Sindh and southern Punjab remain far behind central Punjab and Islamabad in development.

Historical grievances of the regions

1. The lesson of East Pakistan.

East Pakistan earned much of the country's foreign exchange through jute, yet development spending was concentrated in the West. This economic disparity, alongside political exclusion, fuelled the movement that ended in separation in 1971. (Reference: Government of Pakistan, Report of the Panel of Economists on the Fourth Five-Year Plan, 1970; Rounaq Jahan, Pakistan: Failure in National Integration, Columbia University Press, 1972.)

2. Balochistan's gas and minerals.

Gas was discovered at Sui in 1952 and supplied to the rest of the country for decades while most of Balochistan, including Quetta until the 1980s, lacked gas connections. Royalties were low and disputed, and projects such as Saindak and Reko Diq have been seen as benefiting outsiders. (Reference: Parliamentary Committee on Balochistan (Mushahid Hussain Sayed sub-committee) recommendations, 2005; Aghaz-e-Huqooq-e-Balochistan package, 2009.)

3. Sindh's water concerns.

As the lower riparian, Sindh fears that upstream canals and dams reduce its share of the Indus, causing seawater intrusion in the delta. Its opposition to Kalabagh Dam reflects a deep lack of trust in water distribution. (Reference: Water Apportionment Accord, 16 March 1991; Sindh Provincial Assembly resolutions against Kalabagh Dam.)

4. Khyber Pakhtunkhwa's net hydel profits.

Khyber Pakhtunkhwa hosts Tarbela and Warsak, but for years the federation did not pay the full net hydel profits guaranteed by the Constitution. Arrears were settled only partly after the A. G. N. Kazi formula was accepted by the CCI in 1991 and later arbitration. (Reference: Constitution of Pakistan, Article 161(2); Council of Common Interests decision on net hydel profit, 1991.)

5. Unkept promises to ex-FATA.

When the tribal areas merged with Khyber Pakhtunkhwa through the 25th Amendment (2018), the federation and provinces promised 3 percent of the divisible pool for ten years, but this commitment has not been fully honoured. (Reference: Constitution (Twenty-fifth Amendment) Act, 2018; Report of the Committee on FATA Reforms, 2016.)

6. Gilgit-Baltistan's constitutional limbo.

Gilgit-Baltistan has no representation in Parliament or the NFC, although its rivers and mountains are central to Pakistan's water and tourism. Its residents demand a share in decisions and revenues, such as from Diamer-Bhasha Dam. (Reference: Gilgit-Baltistan (Empowerment and Self-Governance) Order 2009; Government of Gilgit-Baltistan Order 2018.)

7. Under-representation in services.

Federal job quotas allot 50 percent to Punjab, 19 percent to Sindh, 11.5 percent to Khyber Pakhtunkhwa and 6 percent to Balochistan, but posts reserved for smaller provinces often remain unfilled or are filled with fake domiciles, while senior posts are dominated by larger provinces. (Reference: Establishment Division, regional quota policy for federal posts; Constitution of Pakistan, Article 27.)

8. Population as the main yardstick.

Even under the 7th NFC Award, population carries 82 percent weight, which rewards larger provinces and does little for vast, thinly populated and poor regions. Disputes over the census, including the 2017 and 2023 counts, deepen distrust. (Reference: Distribution of Revenues and Grants-in-Aid Order, 2010 (7th NFC Award); Pakistan Bureau of Statistics, 7th Population and Housing Census 2023.)

How Pakistan should manage equitable distribution

1. A needs-based NFC formula.

The next NFC Award should give greater weight to poverty, backwardness, inverse population density and revenue generation, which currently carry only 10.3, 2.7 and 5 percent respectively. The NFC must also meet on time; no new award has been agreed since 2010. (Reference: Constitution of Pakistan, Article 160 and 160(3A); 7th NFC Award, 2010.)

2. Honour constitutional resource rights.

The federation should fully implement Article 158 (priority for a province in using natural gas from its wellhead), Article 161 (gas royalty and net hydel profits) and Article 172(3) (joint and equal ownership of oil and gas), and clear all arrears. (Reference: Constitution of Pakistan, Articles 158, 161 and 172(3), as amended by the 18th Amendment.)

3. Empower the Council of Common Interests.

The CCI should meet at least once every 90 days, as the Constitution requires, with a permanent secretariat, so that disputes over water, gas and electricity are settled by the federating units together. (Reference: Constitution of Pakistan, Articles 153-154.)

4. Fair and transparent water sharing.

Implement the 1991 Accord, measure flows through telemetry at all barrages, release minimum flows below Kotri to protect the delta, and take new canal or dam decisions only through the CCI and IRSA. (Reference: Water Apportionment Accord 1991, clauses 2 and 7; Indus River System Authority Act 1992.)

5. Targeted development for lagging regions.

Special programmes, such as a dedicated share of the PSDP for Balochistan, ex-FATA, interior Sindh and southern Punjab, should target the districts with the highest poverty. Multidimensional poverty is around 70 percent in Balochistan and ex-FATA, compared with about 31 percent in Punjab. (Reference: Planning Commission, UNDP and OPHI, Multidimensional Poverty in Pakistan, 2016.)

6. Fair representation in jobs and education.

Enforce regional quotas strictly, verify domiciles, and expand scholarships and seats for students from less developed regions, as with HEC's Balochistan and FATA scholarship schemes and reserved seats in professional colleges. (Reference: Higher Education Commission, Prime Minister's Fee Reimbursement Scheme and scholarships for students of less developed areas.)

7. Local ownership of resource projects.

Mining and energy projects should give host communities jobs, royalties and corporate social responsibility funds. The 2022 Reko Diq agreement, which gives Balochistan a 25 percent share, is a model to build on if benefits actually reach local people. (Reference: Reko Diq Foreign Investment (Protection and Promotion) Act 2022; Supreme Court advisory opinion on Reko Diq, December 2022.)

8. Transparent data and accountability.

A credible census, published data on federal spending by district and parliamentary oversight of how funds are used would build trust. Strong local governments under Article 140A would ensure that money reaches districts, not just provincial capitals. (Reference: Constitution of Pakistan, Article 140A; Pakistan Bureau of Statistics, Census 2023 results and district data.)

Conclusion

Amartya Sen wrote in Development as Freedom (1999) that development is "a process of expanding the real freedoms that people enjoy." For the people of Dera Bugti, Tharparkar, Waziristan or Rajanpur, real freedom means schools, clinics, jobs and a fair share of the wealth beneath their land. Pakistan has the constitutional tools in the NFC, CCI, Articles 158, 161 and 172, and Article 140A. What it needs is the political will to use them fairly and on time. Equity among regions is not charity from the centre; it is the price of national unity and the foundation of balanced development across the country.