A six-year UK-funded initiative has achieved substantial governance improvements in Punjab and Khyber Pakhtunkhwa (KP), generating over £1.9 billion (approximately PKR 700 billion) in public funds and setting the stage for trillions more in savings for the Punjab government in future decades. The British High Commission in Islamabad announced these results on Wednesday.
The UK’s Sub-National Governance Programme, operational from 2019 to 2025, bolstered planning, budgeting, and revenue collection in both provinces. Working alongside provincial administrations, the program implemented changes that enhanced institutional capabilities and yielded significant cost reductions, freeing up resources for reinvestment in public services.
A notable accomplishment in Punjab is the creation of a comprehensive pension reform strategy, establishing a contributory system shared by employers and employees. This single measure is anticipated to save the Punjab government PKR 2.7 trillion over the next 30 years.
Beyond fiscal adjustments, the program also prioritized community impact. In Punjab, extensive socioeconomic information on 35 million residents was gathered, facilitating more targeted delivery of social welfare initiatives, such as cash transfers and food assistance. The program also supported the introduction of programs like Ba-Himmat Buzurg, providing aid to low-income elderly citizens, and Himmat Card, offering financial support to individuals with disabilities.
In KP, the program advanced ecological progress by revamping the province’s waste disposal infrastructure. A sustainable door-to-door waste collection model was established and is being expanded throughout the province.
Sam Waldock, Development Director at the British High Commission, stated, ‘This program demonstrates the potential of robust collaborations to support enduring transformation, impacting people’s lives. We’ve fortified institutions, enhanced service provision, and helped Pakistan leverage more of its assets to fund its own advancement.’
The UK has pledged ongoing support for governance enhancements in Pakistan. Partnering with the UN Development Programme, the UK will initiate a National Governance Programme, concentrating on organizational reform and improved public financial administration, including additional provincial pension system adjustments.