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Provincial Finance Commission: Options for Fiscal Transfers

Author

Listed:
  • Qazi Masood Ahmed

    (Institute of Business Administration, Karachi.)

  • Akhtar Lodhi

    (Applied Economics Research centre, Karachi.)

Abstract

The Provincial Finance Commissions were constituted in all four provinces of Pakistan in 2001. The Commissions were asked to formulate a formula for the distribution of resources among the districts in their respective province to ensure smooth functioning of the local governments and to minimise the poverty and income inequalities among the districts. This paper analyse to what extent the existing development transfers are based on the existing level of deprivation in the districts by looking at the Rank Correlation between them. This paper also runs different simulations to suggest different options for the provincial governments to improve the distribution formulas.

Suggested Citation

  • Qazi Masood Ahmed & Akhtar Lodhi, 2008. "Provincial Finance Commission: Options for Fiscal Transfers," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 47(4), pages 747-762.
    • Handle: RePEc:pid:journl:v:47:y:2008:i:4:p:747-762
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