Charter of the Economy 25.5. Trend in Inter-Provincial Inequality The trend in inter-provincial inequality is a key determinant of the state of the Federation of Pakistan. The 7 th NFC Award took a major step forward by building in significant fiscal equalization in the horizontal sharing formula among the Provinces. The Pashum Index has been used to quantify the extent of inter-Provincial inequality in per capita income and the HDI.. The estimates are presented in the Table 25.9. Table 25.9: Magnitude of Inter-Provincial Inequality in Income and the HDI Pashum Index* –(%) Income HDI 2006-07 16.2 5.1 The worrying finding is that inter­2018-19 22.9 5.3 Provincial inequality has increased according to both measures. The * Presented in HDR 2020 principal reason is the falling behind of Balochistan. Therefore, the pre-requisite for any reduction in coming years in inequality is faster growth of the Province of Balochistan. 25.6. Inequality within Provinces The magnitude of the HDI at the division level has been quantified for 2018-19 in each Province. The HDI estimates are presented in Table 25.10. Table 25.10: HDI of the Divisions of Pakistan by Province, 2018-19 Province/Division HDI Type Province/Division ISLAMABAD 0.885 VH PUNJAB KHYBER­PAKHTUNKHWA Rawalpindi 0.754 VH Peshawar Lahore 0.726 VH Hazara Gujranwala 0.623 H Mardan Faisalabad 0.587 M Malakand Sargodha 0.549 M Kohat Multan 0.494 L Bannu Dera Ghazi Khan 0.419 L Dera Ismail Khan Bahawalpur 0.406 L Waziristan SINDH BALOCHISTAN Karachi 0.884 VH Makran Hyderabad 0.515 M Quetta HDI 0.647 0.575 0.527 0.508 0.491 0.481 0.413 0.410 0.609 0.547 Type H M M M L L L L H M 252