The present study aims to explore the association between urbanisation and economic wellbeing in Pakistan at the district level from a new perspective that has yet to be considered theoretically and empirically in past studies. The study’s findings have shown that the urbanisation process has contributed significantly to better economic lives and the well-being of people. The data contains 100 districts of Pakistan from 4 provinces (Punjab, Sindh, KPK, Baluchistan), while Gilgit-Baltistan and FATA have been excluded due to the lack of data availability. Districts of Pakistan with high urban populations tend to have higher living standards and income levels and increasing trends in population growth. This research descriptively analyses the misallocation of land size to districts, showing a lack of land availability in districts with a high urban population. Moreover, the horizontal growth of cities also substantially hampered the economy. A huge amount of land is left vacant in districts with lower population levels. Higher population densities in districts encourage higher income levels, supported by the agglomeration economies theory in the literature. Poor Governance and political instabilities in Pakistan have failed the efficient urbanisation growth patterns that generally stalled the stable economic growth rate.
