Pakistan, July 2 -- The World Bank has said Pakistan has made "meaningful" progress in fiscal federalism since 2010 but still deviates from international norms. The assessment highlights ongoing gaps in federal-provincial financial arrangements. The findings suggest structural weaknesses continue to affect revenue and governance outcomes.

In its report titled Strengthening Fiscal Federalism in Pakistan, the World Bank identified key implementation gaps in expenditure assignments. It noted that federal authorities continue operating in devolved provincial areas, creating overlap and weak accountability. The report also said local governments remain under-resourced and lack clear functional mandates.

The report further said the 18th Const...