INVESTIGATING THE IMPACT OF FISCAL DECENTRALIZATION UNDER THE 7TH NFC AWARD ON HUMAN DEVELOPMENT IN PAKISTAN

Muhammad Bakhtiar KHAN* and Wasim Shahid MALIK**

This study examines the impact of fiscal decentralization under Pakistan’s 7th NFC Award on human development, using data from 2000–2019. It analyzes changes in the Human Development Index (HDI) and sub-indicators, including life expectancy, education, and income levels. Empirical findings show no significant improvement in HDI or sub-indicators except for life expectancy. The study concludes that fiscal decentralization alone cannot enhance human development without rigorous planning, efficient administrative structures, and innovative strategies at the provincial level. These results highlight the need for a holistic approach integrating financial decentralization with governance reforms and sustainable development planning.