Economic development is an important consideration for a country like Pakistan, especially for the southern provinces; Sindh and Balochistan. Unequal economic development in these southern provinces creates regional disparities. These regional disparities enhance significant political and social issues like rural poverty and uneven economic growth. During the last several decades these provinces have been facing increasing problems of regional inequalities in economic development. Hence it is necessary to investigate the problem areas with poor use of resources by advance statistical techniques like Principal Component Analysis. The results will pin point those areas where development activity and planning can be directed towards improving economic infrastructure and prosperity of the people. The broad objective of economic development is to balance the inherent land resources and optimization of resource use towards achievements of productivity over a long period