Background discussions with authorities concerned have revealed that the ongoing debate over the creation of new provinces and administrative units is the consequence of incomplete devolution under the 18th Constitutional Amendment. It is argued that governance and service delivery cannot be substantially improved merely by administering large populations from provincial capitals.

According to authorities familiar with the discussions, the 18th Amendment transferred substantial powers from the federation to the provinces, but the process of devolution did not subsequently move down to the district and local-government level. They said that in practical terms, powers transferred from Islamabad largely remained concentrated at the provincial level, instead of being further devolved to elected local governments along with the financial and administrative authority required to exercise those powers.

The authorities argued that this has created a situation where decision-making remains centralised in the four provincial capitals, making it difficult to ensure effective governance and efficient delivery of public services across large and increasingly populous provinces. They noted that if political, administrative and financial powers had been fully devolved to the grassroots level, many of the governance problems now cited in support of restructuring the existing provincial framework could have been addressed without necessarily creating additional provinces.

The issue has also been highlighted by Planning Minister Ahsan Iqbal, who recently stated that the benefits of devolution had not reached the grassroots over the past 15 years. He stressed the need for a greater transfer of powers and resources to districts following the 18th Amendment. In an earlier clarification regarding his remarks on new provinces, Iqbal said the lack of transfer of powers and resources to the grassroots after the 18th Amendment, coupled with the centralisation of powers at the provincial level, was a major reason for poor performance in the social sector.