Charter of the Economy shown the fastest growth in its HDI among the four Provinces but why has Baluchistan demonstrated the slowest growth? An attempt is made to answer this question by looking at the efficiency of spending in Table 25.13. the efficiency is measured as the elasticity of growth in the education or health sub-indices of the HDI with respect to the growth in real spending between 2006-07 and 2018-19. There is a large inter-Provincial variation in the elasticity. The education elasticity is the highest in Punjab in education with the lowest growth rate in real education spending. Next is Khyber-Pakhtunkhwa, followed by Baluchistan and Sindh. The ranking of the elasticities is different in health. The best performance is by Sindh, followed by Khyber-Pakhtunkhwa and Punjab. It is negative in Balochistan. Table 25.15: Elasticity of Education and Health Sub-Index of HDI with Respect to Growth in Real Spending EDUCATION Growth Rate in Real Expenditure(%) Growth Rate in Sub Index(%) Elasticity Punjab 5.61 1.32 0.235 Sindh 8.08 0.21 0.026 Khyber-Pakhtunkhwa 9.05 0.95 0.105 Balochistan 8.84 0.59 0.067 HEALTH Punjab 10.9 0.31 0.028 Sindh 12.1 1.56 0.129 Khyber-Pakhtunkhwa 10.4 0.94 0.090 Balochistan 10.7-0.48-0.045 The magnitude of the elasticities reveals a relatively good performance in Khyber­Pakhtunkhwa but not in Balochistan. This leads to the conclusion that Balochistan may have pursued the wrong priorities in social sector spending and/ or there has been a relative lack of institutional capacity in the delivery of services and/ or large leakages in expenditure. Based on the extensive analysis above of regional development in Pakistan recommendations are given below for a faster and more balanced development in the country. 258