ABSTRACT Since its inception in 1947, Pakistan has been facing the challenges of separatism, primarily based on its distinct ethnic identities. Balochistan, the largest but least populous province of Pakistan, has been trapped into a vicious cycle of violent insurgency driven by the problems of political autonomy, unequal resource distribution, and socioeconomic disparities. This paper argues that aggressive regional inequalities and state’s repressive policies have fuelled Baloch sentiments of neglect and deprivation and spurred ethno-political conflict. This paper traces the nexus between socioeconomic imbalances, growth of ethno-political conflict and political participation in Balochistan in the light of Frances Stewart’s concept of ‘horizontal inequalities’. The paper attempts to examine how grievances triggered by the presence of horizontal inequalities can exacerbate the likelihood of ethnic conflict and democratic instability in multi-ethnic societies. It claims that policies of distributive justice and inclusive governance can enhance the likelihood of democratic stability in a plural society.