How do religious institutions affect development? While religious institutions are frequently depicted and studied as part of history, their long-run role in affecting politics and economy today remains uncharacteristically understudied in the scholarship. Religious institutions around the world have historically commanded political and economic resources. Outside of the limited scholarship on the Church however, religious institutions are little understood for their political and economic impact. I will address this question by researching if and why the Sufi Khanaqah affects long-term development. Development being indicated by contemporary public goods and inequality—the two dependent variables. District is the unit of analysis at which Khanaqahs and development will be analyzed. To identify the mechanism and estimate the effect more comprehensively, I will also examine the effect of covariates measuring Khanaqah patronage and trade routes. The study will constitute districts of India and Pakistan between 1858-2011.