Discussion Paper

No. 2014-16 | April 09, 2014
Fiscal Decentralisation and its Effects on the Health Sector in Pakistan


Education and health sectors are known to have massive impact on the quality of human life. In this context, the health sector is discussed in this study to analyse the impact of fiscal decentralisation on basic health infrastructure in Pakistan. Provincial datasets (1980–2001) from three provinces were used for the analysis of provincial health indicators. It was learnt that the health sector remained neglected both at the national and provincial level. The provincial analysis suggests that federal transfers improved hospital beds availability in the economically active provinces, which were presumably more efficient. Provincial autonomy, on the other hand, failed to play a role in the improvement of the health sector. The analysis highlights the social implications of federal transfers. Differences in results for economically distinct provinces hint towards the efficiency aspect of resource utilisation.

JEL Classification:

H30, H39, I18, I19


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Cite As

Nauman Reayat, Iftikhar Ahmad, Jehanzeb Khalil, and Tariq Rahim (2014). Fiscal Decentralisation and its Effects on the Health Sector in Pakistan. Economics Discussion Papers, No 2014-16, Kiel Institute for the World Economy. http://www.economics-ejournal.org/economics/discussionpapers/2014-16

Comments and Questions

Anonymous - Referee Report 1
May 21, 2014 - 10:33

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Anonymous - Referee Report 2
June 04, 2014 - 08:29

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Anonymous - Referee Report 3
July 23, 2014 - 15:00

See attached file