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This book is useful for all researcher, readers and learners who will know about federalism and political economy. It is collection of the research and seminar paper of federalism. It attempt to present on the holistic approach of federalism and provincial state scenario of political economy. The federal structure has power sharing of demography, between the provincial and local level. It has so many opportunities and challenges on restructuring, social, economic, regional and ethnic inequalities. The Federal system of government represents the unified government of people which reduces gap between people and leader as well as people and government. This helps to access the equal use of resources which reduces the conflict at local, regional and national level are found.