Draft Balochistan Comprehensive Development Strategy · account of fiscal arrangements based on the 7th NFC Award together with the acceptance of Balochistan’s long standing demand

1 | Balochistan Comprehensive Development Strategy | 2013 -2020 Report Outline and Sectors Priority List

Draft

Balochistan Comprehensive

Development Strategy

2013 -2020

Planning and Development Department -

Government of Balochistan

2 | Balochistan Comprehensive Development Strategy | 2013 -2020

Draft Message by the Chief Minister

The Balochistan Comprehensive Development Strategy (BCDS) 2013-2020 is the roadmap of the

Government of Balochistan towards the long cherished goal of a holistic development of the province. A

development process, in which the people participate and which impacts their lives as it gets attained.

Such ‘people- centric’ development strategy is undoubtedly the need of the day especially in the

background of current political developments where not only has there been a peaceful political transition

from one government to another but a coalition government representing all major regional and ethnic

groups has come into being entailing greater prospects of peaceful co-existence and political stability. It is

also an opportune time given the fact that the current state of provincial finances is significantly better on

account of fiscal arrangements based on the 7th NFC Award together with the acceptance of Balochistan’s

long standing demand for arrears relating to the royalty and Natural Gas Development Surcharge as a part

of the Aghaz-e-Haqooq-e –Balochistan package.

The, ‘story of Balochistan’ is unfortunately of a region which has lagged behind for too long with serious

implication on the well-being of general population. Issues relating to control over its resources;

inadequate stream of funds; weak governing structures all accumulated into increased poverty;

deprivation which eventually bred deep alienation of various sorts resulting in divisiveness; armed

conflicts and insurgency-like situation. All this has kept the province on the fringes and has denied the

people the development path similar to other regions in the country. In short, the new Government is

confronted with a complex law and order situation together with a huge gap on the development side.

The new coalition Government in Balochistan is however determined to face these challenges through a

single minded pursuit of a policy framework which aims to ‘reach out to the people and win their

confidence through sincere and visible efforts’. Accordingly, the foremost priority of the Government is

to visibly improve governance in the province with a vision for, ‘pro-people development’. Under this

strategy we plan to systematically encourage greater participation of the community in the development

process both in decision making and execution. This includes the participation of women and youth. Such

participation is envisaged to be integral for strengthening the democratic processes in the province and for

improving transparency in public spending. Simultaneously, the strategy thrust is towards increasing

productivity of different sectors especially those in which Balochistan has a strategic advantage such as

minerals; horticulture; agriculture, livestock and fisheries. We plan to increase investments in these;

improve expenditure effectiveness by enhancing the performance of the public sector and create greater

opportunities for jobs and higher incomes. We remain sensitive to increased investments in health;

education and water sanitation for improving human development. The human development which is

sensitive to encouraging participation of women, minorities and other weaker sections of the society for a

more equitable and inclusive society. Our development strategy emphasizes greater use of Information

and Communication Technology for reaching out to our people and for attaining an adequate

technological and competitive edge in a fast changing global economy.

I am confident that, given the resolve of the current leadership and support of the federal government, the

Government of Balochistan is fully poised to take up the responsibility of the essential structural and

policy reforms, undertake a serious implementation of the BCDS for forging ahead towards the path for a

high, inclusive and sustained growth in Balochistan.

I would like to extend my appreciation of the entire team which has taken this initiative forward. I would like to

thank the UNDP for supporting this effort and for remaining engaged with us throughout its formulation; our

appreciation for the consultants M/S M. Yousuf Adil Saleem & Co., Chartered Accountants (Deloitte

Pakistan) for putting together a strategy document which is aligned to our aspirations in close collaboration with


the provincial administration. The Additional Chief Secretary Development, Mr. Aslam Baloch and the Secretary

Finance Mr. Dostain Jamaldeeni need a special mention for their persistent, deep and passionate involvement in this

exercise for evolving a road map in the interest of people of this province.

Chief Minister Balochistan


Acknowledgement

Let me begin by appreciating the UNDP’s assistance in helping the Government of Balochistan in putting

together a roadmap for Balochistan’s Development, the Balochistan Comprehensive Development

Strategy (BCDS) 2013-2020. It is indeed a strategic moment for unfolding a well thought out and a

prioritized development framework for the province by moving away from the earlier mechanism of

putting together a set of small schemes year after year. This earlier approach unfortunately neither helped

in creating the critical infrastructure which could support the provincial economy to grow and nor has it

facilitated in evolving the systems which could facilitate improvements in the state of human

development and the production sectors.

As a departure from the past practise, the BCDS puts across a well-considered and a very precise roadmap

for the next 7 years. This roadmap has been chalked out carefully and it takes into account our critical

structural and system weaknesses and is pillared on some of the strategic strengths such as the minerals;

horticulture; livestock; fisheries etc. It has been pitched on a slightly ambitious note with a view to create

confidence and hope in our future. Such confidence is required given the fact that our political leadership

has resolved to forge ahead towards the goal of improving peoples’ lives by creating opportunities for

growth and job creation and not to be deterred by the disruptions created by different players and forces.

The BCDS implementation requires a sustained fiscal discipline including essential reforms in economic

policy and economic management, as an integral part of the implementation process, which would help to

eliminate waste and inefficiency and impart a new element of dynamism to growth processes in our

economy. The thrust of the reform process would be to gradually raise the capacity of the public sector

while creating opportunities for greater participation of the private sector as ultimately it’s the private

sector which must drive the growth paradigm.

We are especially grateful to the UNDP team led by ------------- and including --------- and ------------------

---- for their continued support throughout BCDS preparation. We would like to extend our appreciation

for the consultants M/S M. Yousuf Adil Saleem & Co., Chartered Accountants (Deloitte Pakistan) for

their work and the overall coordination process through which the strategy was finalized. It needs to be

acknowledged that the consultants undertook this assignment with dedication and commitment.

Acknowledgement are also due to the provincial secretaries, their officers including government officials

at the district levels, members of the civil society, NGOs, business community, who participated in

different consultative sessions and gave valuable inputs. Most significantly the --------- coordination team

led by Mr. G N Marri under the supervision of Mr. --------- requires especial mention for their persistent

coordination and support for this endeavour.

It is my sincere resolve that the P&D Department under the leadership of the Chief Minister and the

Cabinet will make serious and sincere efforts at undertaking the implementation of the BCDS for the

overall well-being and prosperity of the people of Balochistan

Additional Chief Secretary (Development)


Abbreviations

AEDB Alternative Energy Development Board

MFD Marine Fisheries Department

ADB Asian Development Bank

MICS Multiple Indicator Cluster Survey

AHAN Aik Hunar, Aik Nagar

MMcf Million Cubic Feet

AHB Aghaz-e-Haqooq-e-Balochistan

MMDD Mines and Mineral Development Department

AIDS Acquired Immune Deficiency Syndrome

MNCH Maternal Neonate and Child Health

ASER Annual Status of Education Report

MRDL MCC Resources Development (Pvt.) Limited

BBOI Balochistan Board of Investment

MSDP Minimum Health Service Delivery Package

BCDS Balochistan Comprehensive Development

Strategy MVA Manufacturing Value Added

BCG Bacillus Calmette–Guérin

MW Megawatt

BDA Balochistan Development Authority

NAVTEC National Vocational & Technical Education

Commission

BEF Balochistan Education Foundation

NBFC Non- Banking Financial Company

BEMIS Balochistan Education Management Information

System NBP National Bank of Pakistan

BIDA Balochistan Irrigation Development Authority

NCD Non-Communicable Diseases

BISP Benazir Income Support Program

NCGR National Commission for Governance Reforms

BMR Balancing, Modernization And Restructuring

NCHD National Commission for Human Development

BMR Balochistan Mineral Rules

NEMIS National Education Management Information

System

BOT Build–operate–transfer

NEP National Education Policy

BPSC Balochistan Public Service Commission

NER Net Enrolment Rates

BRSP Balochistan Rural Support Program

NFC National Finance Commission

BTEVTA Balochistan Technical Education & Vocational

Training Authority NGO Non-governmental Organization

BWRMA Balochistan Water Resource Management

Authority NHA National Highway Authority

CABI Centre for Agriculture and Biosciences

International NORAD

Norwegian Agency for Development

Cooperation

CCTV Closed-Circuit Television

O&G Oil & Gas

CDS The Comprehensive Development Strategy

OGDD Oil & Gas Development Department

CEO Chief Executive Officer

OOP Out of Pocket

CIF Community Investment Fund

P & D Planning & Development

CSC Community Service Centers

PCSIR Pakistan Council of Scientific and Industrial

Research

CSP Community Schools Program

PDHS Pakistan Demographic & Health survey

CY Current Year

PDMA Provincial Disaster Management Authority

DDRRM District Disaster Risk Reduction Management

Plan PDRMP Provincial Disaster Risk Management Plan

DFI Development Finance Institution

PHC Primary Health Care

DMIS District Management Information System

PHED Public Health Engineering Department

DRI Direct Reduced Iron

PIFRA Project to Improve Financial Reporting and

Auditing

DSD Directorate of Staff Development

PMDC Pakistan Medical & Dental Council

FAO Food & Agriculture Organization

PMS Punjab Management Service

FE/Fe Iron

PMU Project Management Unit

FY Financial Year

PPAF Pakistan Poverty Alleviation Fund


GDA Gwadar Development Authority

PPHI Peoples Primary Healthcare Initiative

GDP Gross Domestic Product

PPP Public Private Partnership

GIE Gwadar Industrial Estate

PRS Poverty Reduction Strategy

GIS Geographic Information System

PSDP Public Sector Development Program

GNP Gross National Product

PSLM Pakistan Social & Living Standards Management

GoB Government of Balochistan

QDA Quetta Development Authority

GoP Government of Pakistan

R&D Research & Development

GPS Global Positioning System

RCC Re-enforced Cement Concrete

GPI Gender Parity Index

SBP State Bank of Pakistan

GPP Gross Provincial Product

SDPI Sustainable Development Policy Institute

GST Government Sales Tax

SEMP School Education Management Partners

HDI Human Development Index

SEZ Special Economic Zones

HEC Higher Education Commission

SIZ Special Industrial Zone

HIE Hub Industrial Estate

SLO Students Learning Outcomes

HIV Human Immunodeficiency Virus

SME Small And Medium Enterprises

HMIS Health Management Information System

SML Saindak Metals Limited

HRMIS Human Resources Management Information

System SSM Small Scale Manufacturing

IBIS Indus Basin Irrigation System

STR Student Teacher Ratio

ICT Information, Communication and Technology

TDAP Trade Development Authority of Pakistan

IDBP Industrial Development Bank of Pakistan

TEVTA Technical Education And Vocational Training

Authority

IFAD International Fund for Agricultural Development

TMA Taluka Municipal Administration

IMR Infant Mortality Rate

TMC Town Municipal Committees

IPP Independent Power Producer

TPV Third Party Validation

IT Information Technology

UC Union Council

IUCN International Union for Conservation of Nature

UN United Nations

IUU Illegal; Unregistered and Unreported

UNDP United Nations Development Program

IWRM Integrated Water Resources Management

UP&D Urban Planning & Development Department

KPI Key Performance Indicators

USAID United States Agency for International

Development

KPK Khyber Pakhtunkhwa

USD United States Dollar

KSE Karachi Stock Exchange

VGF Viability Gap Fund

LIEDA Lasbela Industrial Estates Development Authority

WB World bank

MDB Mineral Development Board

WFP World Food Program

MDG Millennium Development Goals

ZTBL Zarai Taraqiati Bank Limited

MFB Micro-Financing Bank


Contents

Executive Summary

1. Approach 21

2. Balochistan; Polity and State of Development 23

2.1 History and Polity 24

2.2 Demography; Geography and Connectivity 25

2.3 Growth and Structural impediments 26

2.4 Widespread and Deep Poverty 28

2.5 Water Constraints 29

2.6 Weak Private Sector and Constraints of Trained Manpower 29

2.7 Security Dimension 30

2.8 Fiscal Framework 30

3. Governance, Security and Sustainability 33

3.1 Governance 34

3.2 Security 38

4. Social Safety Nets and Pro- poor Initiatives; Upfront 41

4.1 Evolving Stipend Based Skill Development Program 42

4.2 Women Focused Skill Development 43

4.3 Strengthening and Expanding Existing Poverty Reduction Programs 44

5. Service Delivery 47

5.1 Education Sector 48

5.2 Technical Training; College & Tertiary Education 57

5.3 Health Sector 60

5.4 Religious Affairs 68

5.5 Culture, tourism & Archaeology 69

5.6 Sports & Youth Affairs 70

6: Infrastructure 72

6.1 Roads & Transport 73

6.2 Water 78

6.3 Water & Sanitation 83

6.4 Energy and Power 86


Contents

7. Economic Growth 90

7.1 Private Sector Development and Financial Intermediation 91

7.2 Agriculture 96

7.3 Livestock & Rangelands 101

7.4 Fisheries 106

7.5 Industry and Trade 110

7.6 Mining and Natural Resources Sector 115

7.7 Housing 124

8. Urban Development 130

8.1 Investing in Cities for Creating Growth Poles 131

8.2 Quetta; building a leading capital city 133

8.3 Pishin; a horticulture hub 133

8.4 Lasbela; strengthening industrial base 134

8.5 Turbat; a dates hub 135

8.6 Gwadar; building a port city 135

8.7 Loralai; a minerals hub in north 136

8.8 Khuzdar; a midway agriculture span 136

8.9 Nasirabad; strengthening a crops center 137

8.10 Sibi; developing a mineral city 137

8.11 Killa Abdullah; gateway for trade 138

9. Cross Cutting Sectors 141

9.1 Gender 142

9.2 Technology for Empowering People 143

9.3 Environment 145

9.4 Disaster Preparedness 146

10. Implementation of BCDS 148

10.1 Fiscal Projection 149

10.2 BCDS Expenditure & Financing 151

10.3 Risk Management 152

10.4 Monitoring, Reporting & Evaluation 154


Contents

Tables

Table 2: Average Annual Growth Rates of Value Added of Major GPP Sectors of

Balochistan FY07 to FY11 27

Table 2.1: Estimates of Structural Changes in Balochistan GPP over FY00 to FY11 27

Table: 3.1: Target / Sectarian Killings 2007-2012 38

Table: 3.2: Law & Order Budget 2009-10 to 2012-13 38

Table 4.1: Microfinance Scenario; Pakistan Sept 2012 44

Table 5.1: Comparative Education Indicators Pakistan 48

Table 5.2:Net Enrolment Rates (2004-05 to 2010-11) 49

Table 5.3: Balochistan Education Expenditure 2006-07to 2011-12 50

Table 5.4: Child Delivery and Type of Assistance 61

Table 5.5: PPHI’s Achievements on Infrastructure 63

Table 5.6: Health Expenditure 2006-07 to 2011-12 65

Table 6.1: Balochistan's Road Sector Allocations FY 2012-13 74

Table 6.2: Road Sector Schemes with NHAFY 2012-13 74

Table 6.3 Road Sector Budget Allocations2009-10 to 2012-13 75

Table 6.3A Road Sector 77

Table 6.4: Balochistan’s Water Resources 79

Table 6.5: Balochistan Irrigation Sector Allocation2012-13 80

Table 6.6: Status of Irrigation Schemes in Federal PSDP 80

Table 6.7: Type of Sanitation Facility Used by the Households in Balochistan 84

Table 6.8: Sanitation Facility (in %) 85

Table 6.9: Balochistan's Water Supply & Sanitation Allocations FY 2012-13 85

Table 6.10: Natural Gas Production (in MMcf) 87

Table 6.11: Energy Consumption by Sector 2010-11 87

Table 7.1: Costs of Doing Business in Pakistan 2009 (Ranks) 92

Table 7.2: Balochistan Credit and Deposit Concentrations (in %) 93

Table 7.3: Balochistan SME Credit 93

Table 7.4: Balochistan's Share in Agriculture Credit 93

Table 7.5:Agriculture Allocations FY 2012-13 97 Table 7.6: Contribution of Balochistan in National Livestock Pool 102

Table 7.7: Balochistan MVA Growth (at constant factor cost) 111

Table 7.8: Industry in the Lasbela Industrial Estate Development Authority 111

Table 7.9: District- Wise Trade Sector Credit in Balochistan June 2012 112

Table 7.10: Private Sector Credit Outstanding to Manufacturing2008-2012 113

Table 7.11: Coal Reported Reserves 117

Table 7.12: Production of Coal by Field (Unit: Tons) 118

Table 7.13: Iron Ore Reserves (in million tons) 118

Table 7.14: Revenue Receipts from Minerals(2008-09 to 2011-12) 120

Table: 7.15: Inter-Kensal Population Growth Rate in Balochistan 125

Table 7.16: Balochistan Projected Population 2013 125

Table: 7.17: Material Used for the Roofs of Houses 126

Table 8.1: Balochistan District Population Projections 131

Table 8.2: Gross District Product (World Bank Estimates) 132

Table 8.3: Quetta’s Share of Private Sector Outstanding Credit 133 Table M.1: BCDS Monitoring Indicators 155

Costing Tables

Table 3A: Governance 37

Table 3B: Security 40

Table 4A: Pro- Poor Programs 46 Table 5A: School Education 57

Table 5B: Technical and Higher Education 60

Table 5C: Health & Population Welfare 67 Table 5D: Religious Affairs 69


Table 5E: Culture, Tourism 70

Table 5F: Sports & Youth 71

Table 6B: Irrigation Water 82 Table 6C: Water & Sanitation 86

Table 6D: Energy 89

Table 7A:Private Sector Development 96

Table 7B: Agriculture 101 Table 7C: Livestock & Rangeland 105

Table 7D: Fisheries Development 110

Table 7E: Industry & Trade 115 Table 7F: Minerals & Natural Resource Development 123

Table 7G:Housing 129 Table 8A: Urbanization 140

Table 9A: Women Empowerment 143

Table 9B: ICT for People 145

Table 9C: Environment 146

Table 9D: Disaster Management 147

Fiscal Tables

Table F.1: Balochistan Revenue Post NFC 2010-2013 31

Table F.2: Balochistan Post NFC Expenditure (2010-11 to 2012-13) 31 Table F.3: Balochistan’s Revenue Projections 149

Table F.4: Balochistan's Expenditure Projections 150

Table F.5: Summary of BCDS Expenditures 18

Table F.6: BCDS Expenditures 151

Table F.7: BCDS Sources of Funding 152

Figures

Fig: 2.1: Province wise Incidence of Multi-Dimensional poverty 28

Fig 5.1: % of Pregnant Women that have Received TTX Injection 61

Fig 5.2: % of Children (12-23 months) Immunized (based on Recall & Record) 62

Fig: 6.1: Water Resources of Balochistan 78

Fig: 6.2: Balochistan Sources of Drinking Water (PSLM 2010-11) 83

Fig: 7.1: Livestock Population in Balochistan 102

Fig: 7.2: Material of the Wall of Houses 125

Boxes

Box 3.1: Bihar’s Governance experience 33

Box 3.2: Model Police Stations in Punjab 39

Box 4.1: Punjab's Partnership with 'Akhuwat' for Micro Credit Program 44


Balochistan

Map of

Balochistan


Vision (draft)

A cohesive, resilient, productive, peaceful and prosperous Balochistan having a society pillared

on enduring values of tolerance; equity, justice and enlightenment gradually built through

persistence efforts at human development; quality infrastructure; increased productivity on

sustained basis.

Goal (draft) The above vision is planned to be achieved through very serious efforts at attaining following major

goals:

Strengthening the democratic institutions through conscious, systematic and organized

involvement of community groups in decision making in public programs at local level for up-

scaling transparency and accountability visibly.

Improving peoples’ trust in governance by ushering in greater transparency in decision making

and program execution through compulsory public information enactment

Undertaking ‘pro people’ programs having clear regional balance and under the principles of

equity

Strengthening the capacity of the public sector to deliver through more transparent recruitment;

transfer postings; capacity development and increasing institutional accountability over the

performance

Making expenditures effective by improving planning, increasing institutional oversight over

execution and moving towards results based management

Setting clear targets for growth; job creation; productivity and social indicators and evaluating

administrative and political performance on the basis of these indicators and ushering in new

standards of public accountability


Executive Summary

1. The Comprehensive Development Strategy (2013-2020) is the planning of the Government of

Balochistan for undertaking a prioritized development portfolio towards the overall vision of

inclusive growth, better livelihoods, peace and prosperity in Balochistan. It is a 7 year framework

and has been planned to be implemented within the challenging security environment of the

province.

2. The last few years’ investments in Balochistan, especially in the infrastructure both by the GoB as

well as by the federal government; followed by the agreement on the Aghaz-e-Huqooq-e-Balochistan;

the 7th NFC Award and the 18

th Amendment to the Constitution despite the criticism of being too little

and too late, have unwrapped many opportunities for development in Balochistan. Other than the

precious fiscal space, these historic corrections provide the much needed administrative autonomy

over many subjects which were hitherto under the shared domain between the federal and provincial

governments. These are definitely huge positives which if utilized well, can make a beginning

towards the growth path. The pathway however, has to be designed with care and it must be bolstered

on some of the strategic strengths of the province such as minerals, horticulture, livestock, fisheries

etc. The harnessing of these resources, at the same time requires creative methods to overcome some

of the structural binds which have held back Balochistan’s development for long. Amongst others the

security, endemic poverty, water constraints, low population density, weak private sector and

institutions and low skilled manpower are few of the over encompassing constraints. It is in this

setting that the government plans to play a much bigger role in multiple arenas to provide the stimulus

to growth and job creation.

3. There is a widespread optimism about the incoming coalition Government in Balochistan and the

new Government has already acknowledged the importance of improving governance through

multiple measures including greater participation of the stakeholders in decision making and clearly

improving the transparency and accountability of public decisions and spending. The GoB aims to

exhibit ‘pro-people’ policies and for this it plans to improve such institutions as the Balochistan

Public Service Commission (BPSC); the Anti-Corruption Establishment. It will expedite PIFRA

reforms; undertake computerization of land records and taxation system; prepare a human resource

management information system linked to payroll; strengthen M&E units of major departments for

a robust monitoring and evaluation system together with TPVs. A public information system

backed by an enactment of compulsory Public Information, together with procurement reforms for

strengthening accountability. The most important reform however will be creating the Public

Accounts Committee for initiating legislative oversight over public expenditures.

4. The law & order situation in Balochistan is the most worrying aspect of current situation and it may

remain fragile for some time. Hence, while the strategy leaves the larger security issues to the

political handling, it provides interventions which in the short to medium term will boost the

security apparatus in significant ways; from additional 5000 police force, improved mobility,

telecommunication to greater use of ICT for a more efficient handling of data and communications.

Strengthening the intelligence wing, prosecution side; establishing anti-terrorist force and bringing

in a forensic lab and witness protection law are some components of the recipe to prepare a more

equipped and trained force for better policing and managing the complex dimension of internal

security in the province.

5. Government plans to set the stage for BCDS by unfolding a few large scale pro-poor Programs;

upfront of the BCDS. This will not only relay early signals of positive activities but will gradually


help in redressing the despair to some extent. The pro-poor interventions include a well-designed

stipend based skill development program for 30,000 youth. It entails a women focused nurses and

midwives’ training program for 1250 women; a micro finance program for 50,000 women

beneficiaries to support livelihoods and expanded Area Development program for 200,000

beneficiaries. The strategy envisions establishment of a Balochistan Microfinance Bank in

partnership with private sector for up-scaling the availability of micro credit. The strategy stresses

on a transparent targeting of beneficiaries by way of creating a data base of the marginalized

population by sharing data from BISP and NADRA. Also under the Balochistan Hosing Program,

subsidy will be provided for construction as well as rehabilitation of 120,000 houses primarily for

the poor. This would be by making available public land free of cost, arranging housing finance

with interest to be borne by GoB and also 25% cost of construction to be financed by the

government. This is envisaged as a major pro poor intervention which will kick start economy

through backward linkages with construction linked industry as well as raw materials.

6. Government is clear that the reform in the school education will largely determine the future growth

trajectory of Balochistan. The GoB will improve school infrastructure; provide requisite facilities

for being able to enroll 500,000 additional children in next few years. A part of these will be

through ‘ community schools’ in smaller settlements and a part through public private

partnership mechanisms. However, these investments will fit in a reworked governance structure by

taking the decision making down to school level. The reforms including; merit based teacher

recruitments; creation of district level and school level management cadres and bringing in

accountability of the entire system through the annual Student Assessments are aimed at improving

educational governance. Further, GoB will undertake partnerships through BEF as well as with the

well-established private education providers for bringing additional children to schools and

improving quality of education. Given the weak presence of higher education in the province, the

BCDS plans introducing faculties having higher market demand in existing colleges and operating

new colleges in partnership with private sector. It envisages establishment of campuses of a few

selected universities in regions not having higher education facilities; establishment of HEC, for

regulating higher education standards and evolving a system of grants for the universities. For

technical and vocational education, the strategy proposes to establish a central Technical and

Vocational Training Authority and simultaneously establishing management contracts with private

sector for improving the quality of training and linking it to market demand.

7. For health sector, Government plans to bring the PHC and mother and child care to the center stage

by firstly upgrading the 555 civil dispensaries in the province to BHU level and integrating these

and the EPI with the PPHI for an integrated PHC and mother care facilities. Also, one third of the

BHUs will be upgraded to BHU- plus level to cater to maternal health services. For secondary and

tertiary health, the strategy envisages tertiary hospital autonomy pilots, by creating autonomous

governing boards. Greater resources have been provided for division/district specific recruitment of

specialized doctors; female doctors, nurses and paramedic staff for ensuring their availability in the

district hospitals. It envisages a medical college under PPP; nursing trainings in collaboration with

private sector and other deficient services such as diagnostic services; blood banks etc. are proposed

to be undertaken in collaboration with private sector.

8. Given the huge youth bulge and possibilities of the role that youth can play in containing conflict

and promoting peace in the province, GoB plans to encourage their involvement in

multidimensional activities. For evolving a mechanism to contain the fast rising menace of drug

use; the BCDS proposes to undertake a study to determine the extent of the drug problem, including

approximate quantities of drugs crossing into Balochistan, the trafficking and gender disaggregated

data on usage of the drugs within Balochistan, usage in schools and colleges, etc. It is proposed to


undertake a needs analysis of The Detoxification and Rehabilitation Complex for Drug Addicts,

Eastern Bypass, Quetta with a view of supporting the rehabilitation program including supporting

the schools awareness program in the most affected areas of Balochistan.

9. GoB plans to undertake infrastructure development by prioritizing the infrastructure having greater

economic viability through sustainable and inclusive mechanisms. Under the Roads and Transport

sector, the BCDS calls for drawing-up a master plan of the high priority corridors, including rural

access roads, it envisages construction of 2500 km of economic corridors; conversion of 8,000 km

of shingle roads into paved roads and undertaking maintenance of 5000 km of roads. For the

irrigation water, the strategy is clear that evolving water resource management system and

institutional framework (IWRMA) will be central to sustainable water use in the province. The

theme is pillared on undertaking river basin wide management of water with greater focus on the

flood irrigation Sailaba and creating water storages on all strategic locations in the river basins and

handling the Sailaba irrigation and dams command area in an integrated manner. Under the

Strategy, GoB will support establishment of Drip Irrigation Manufacturing Plants in the province

under PPP mode for providing either front- end or back- end subsidy to get a system introduced

with full institutional support. There is emphasis that water supply and sanitation requires a

dedicated attention and given the massive gap, it is planned to undertake integrated water supply

and sanitation system in partnership with the local communities especially women through a

community infrastructure program for a minimum of 5000 settlements.

10. On the energy front, the GoB plans to establish at least two 150 MW each coal based power plants

one in Loralai, at the mine mouth and other Quetta. Second the Government plans to negotiate with

the federal government for allocation of additional Natural Gas to the province in accordance with

the Constitution for; i) setting- up a 100 MW power plant either at Lasbela or near the gas fields; ii)

to make additional Natural Gas available for the industry in the province as a major incentive. GoB

plans to participate in these projects through equity partnership and encourage private sector to

invest and operate these on commercial basis.

11. The Government believes that economic growth can be speeded up by strengthening of private

sector and encouraging availability of institutional credit for all sectors especially SME funds to

spur the small enterprise growth in the province. GoB will accordingly establish Balochistan Board

of Investment to lead the investment portfolio; create a SME fund under its umbrella for making

available technical and financial support to SMEs; evolve a credit guarantee scheme for greater

credit availability; introduce PPP frameworks and dedicated private sector development for

improving investment climate.

12. Under agriculture, the GoB plans to overcome structural challenges by greater reliance on Sailaba

farming with a target to bring in 1 million hectares of additional land under cultivation, which can

yield livelihoods for additional 200,000 households’ (approximately 1.2 million people). High

value products and use of high irrigation efficiency systems will be promoted for better productivity

from each drop of water. Setting-up of agriculture marketing company with GoB support;

mechanisms that make availability of quality inputs in different regions and a modern ICT based

agriculture extension are the core strategy components. For Livestock, the strategy envisages

availability of credit; creation of livestock services company; a livestock marketing and meat

processing company; community based milk collection and marketing; and greater public sector

investment in Rangeland development. Under Fisheries, GoB will complete on-going infrastructure

for harbors, fish processing unit and preparations for operating these facilities in partnership with

private sector. Trainings for fishermen, an intervention to support boats modification have been


prioritized. The strategy envisages exports of processed meat and fresh fish from Gwadar to Middle

East and beyond both by sea and air.

13. Manufacturing sector development would focus on stimulating private sector investment in mineral

and agriculture sector downstream industries. For this, GoB will undertake equity participation in a

few strategic industries; and develop industrial infrastructure. The major economic driver is

however the mineral sector and here the priority measures seek to develop the institutional

framework; taking actions for greater involvement of local population in the development;

undertaking legal frameworks; geological surveys; master plans for future mining leases; preparing

projects which protect the public sector stakes in the mining leases; establishing Coal Washing

plants at different locations, a Ferrochrome plant; De-sulphurization plant and a mini Steel Mill at

strategic locations are some key pioneering interventions requiring equity participation of the GoB

to make a bold beginning. Development of Reko Diq through proper feasibilities will be accorded

high priority and for this GoB plans to set aside funds both for investment as well as for

infrastructure development linked to mineral development in the province.

14. GoB recognizes that cities are engines of growth and it plans to undertake development of all

district headquarter cities in phases with a beginning through 10 cities. The GoB planning envisages

development of city master plans, upgrade of existing municipal infrastructure; development of new

housing enclaves by providing serviced plots more importantly creating dedicated Regional

Development Authorities at divisional level and strengthening the municipal organizations by

creating a Municipal Fund. It lays stress on planned growth which is integrated with the rural

hinterland as well as with markets in the surrounding growth poles in Pakistan and in neighboring

countries.

15. The cross- cutting themes highlight the BCDS focus on women; on environment and on the ICT all

along the strategy. From education, health, water & sanitation and housing, the strategy emphasizes

on women focused interventions for bringing them to the mainstream. There is reliance on greater

use of technology across sectors and there is a special plan for establishing tele-centers to take a

range of services to the rural population. Environmental and resource conservation is also a central

theme with plans for rangeland development. The climatic changes and vulnerability of large

segment of the population makes it imperative to have a functional organization for emergency,

relief and recovery services by creating a robust disaster preparedness apparatus.

Table F.1: Balochistan Revenue Post 7th

NFC (2010-2013) (Rs. in Million) 2010-11 2011-12 Budget 2012-13 Growth

Federal Tax Assignment 88,191 98,435 114,206 14%

Straight Transfers plus GST on Services 17,356 17,393 16,310 -3%

Federal Non Development Grants 12,000 12,827 13,018 4%

Tax Receipts 1,156 1,352 1,217 3%

Non-Tax 2,957 3,749 4,181 19%

Total Receipts 121,660 133,756 148,932 11%

Provincial Own Receipts’ 4,113 5,101 5,398 15%

Source: Provincial Accounts 2012-13

16. Provincial revenues have improved significantly subsequent to the 7th NFC Award and the Aghaz-

e-Huqooq-e-Balochistan. The average annual growth in the Federal Tax Assignment from 2010-11

till 2012-13 is working out to be 14% (Table F.1).


17. Based on the past trends, the provincial revenue has been projected to grow from Rs. 149 billion in

2012-13 to Rs. 282 billion by 2019-2020 (Table F.3). Here the major component is the Federal Tax

Assignment which has been projected to grow at 11% annually (as against average annual growth

of 14% seen in last two years) in order to provide for any unwarranted fluctuations. The Federal

Tax Assignment is likely to change after the next NFC Award, however for BCDS projections; the

growth rate has been kept same. The Straight Transfers including GST on Services has been

projected to grow at the rate of 6%, as lately straight transfers have not shown major growth on

account of lack of growth in production volumes. The Provincial Tax is also not likely to exhibit

major growth until there is economic expansion however provincial Non -Tax revenues have been

projected to grow at the annual growth rate of 12%.

Table F.3: Balochistan’s Revenue Projections (Rs. in millions)

Rev

Budget Budget Projections 2013-14 to 2019-20

2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20

Federal Tax 114,206 123,274 136,834 151,886 168,594 187,139 207,724 230,574

Straight Transfers +

GST on Services

16,310 18,706 20,015 21,416 22,915 24,519 26,236 28,072

Non Dev. Grants 13,018 12,950 12,000 12,000 12,000 12,000 12,000 12,000

Provincial Own

Receipts’

5,398 6,468 7,120 7,845 8,653 9,551 10,552 11,668

Tax Receipts 1,217 1,551 1,613 1,677 1,744 1,814 1,887 1,962

Non-Tax 4,181 4,917 5,507 6,168 6,908 7,737 8,666 9,705

Total Receipts 154,330 167,868 183,089 200,992 220,814 242,760 267,065 293,981

Source: Undertaken on the Basis of Past Trends

18. On expenditure side, the major expenditure is on account of pay and allowances which presently

constitutes 49% of the current revenue expenditure. This is projected to increase by 13% annually

(15% pay and 10% allowances) in order to cater the regular pay increases announced by the

government to meet the inflation. The total amount available for development expenditure from

2013-14 to 2019-20 is Rs. 422.8 billion.

Table F.4: Balochistan's Expenditure Projections (Rs. in million)

Rev

Budget Budget Projected Salary & Non Salary Expenditure 2013-14-2019-20

HEADS 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20

Pay 28,982 33,329 38,329 44,078 50,690 58,293 67,037 77,093

Allowances 22,360 24,596 27,056 29,762 32,738 36,012 39,613 43,574

Pay/Allowances 51,342 57,925 65,385 73,840 83,428 94,305 106,650 120,667

Pension 8,500 8,500 9,350 10,285 11,314 12,445 13,689 15,058

Debt Servicing 2,272 2,100 2,310 2,541 2,795 3,074 3,381 3,720

Total Estab/Debt 62,115 68,525 77,045 86,666 97,537 109,824 123,720 139,445

Non salary 41,191 48,823 51,132 53,350 55,426 57,297 58,884 60,097

Current Exp 103,305 117,348 128,177 140,016 152,963 167,121 182,604 199,542

Development

Expenditure 33,198 39,932 47,793 53,132 59,199 66,089 73,907 82,771

Total Prov Exp 136,503 157,280 175,970 193,148 212,162 233,210 256,511 282,313

Source: Based on Past Trends(Note: slight calculation differences may arise, purely as a result of rounding off)


19. The total BCDS expenditure has been estimated to be Rs. 588.8 billion for the seven years. Of this

Rs. 422.8 will be financed through the provincial own resources leaving a fiscal deficit of Rs. 166

billion or USD 1.66 billion. Government plans to approach the international donor community both

multilateral and bilateral donors for assistance; including grants, concessional lending and technical

assistance.

Table F.5: Summary of BCDS Expenditures (Rs. in million)

Sr.

No

Sectors Total BCDS

Expenditure

Proposed Foreign

Assistance Portion

Proposed

FA %

Sector

Share %

1 Governance 4,012 1,757 44% 0.7%

2 Security 20,883 3,697 18% 3.5%

3 Pro Poor Programs 25,910 6,500 25% 4.4%

3 School Education 88,670 53,970 61% 15.1%

4 Higher Education 19,519 4,406 23% 3.3%

5 Health 43,386 13,426 31% 7.4%

6 Religious Affairs & Interfaith

harmony 2,000 - 0% 0.3%

7 Culture , Tourism 1,838 - 0% 0.3%

8 Social Welfare, Sports , Youth

affairs 2,195 - 0% 0.4%

9 Road & Transport 105,515 30,515 29% 17.9%

10 Irrigation Water 68,333 16,675 24% 11.6%

11 Water Supply & sanitation 17,284 6,950 40% 2.9%

12 Energy 20,518 600 3% 3.5%

13 Private Sector Development, 12,124 918 8% 2.1%

14 Agriculture 25,457 4,733 19% 4.3%

15 Livestock & Rangeland 18,003 4,200 23% 3.1%

16 Fisheries 14,263 3,638 26% 2.4%

17 Trade & Industry 5,890 164 3% 1.4%

18 Minerals & Natural Resources

Development 36,254 5,531 15% 6.2%

19 Housing 22,628 385 2% 3.8%

20 Urbanization 15,093 816 5% 2.6%

21 Cross Cutting; Gender 4,165 2,310 55% 0.7%

22 Cross Cutting; ICT 5,737 1,018 18% 1.0%

23 Cross Cutting; Environment 6,348 3,694 58% 1.1%

24 Cross Cutting Disaster

Management 2,801 101 4% 0.5%

25 Total 588,828 166,004 28% 100%

Share of Own and Donor

financing 422,824 166,004

(Note: slight calculation difference may arise, purely as a result of rounding off)

20. The overall assessment for donor financing comes to Rs. 166 billion (USD 1.66 billion) which

calculates to roughly USD 237 million per year. In terms of phasing, there is a major shortfall in the

initial four years of the strategy as at this time the need for financing is greater compared to the

revenues. Also the strategy envisages to finance the throw forward of existing schemes through the

BCDS in the period so that there are no further cost escalations and benefits begin to flow. It is in


this background that the requirement for donor assistance is almost USD 1.1 billion in the first four

years of the strategy (Table F.7).

Table F.7: BCDS Source of Funding (Rs. in million)

FY1, FY2 FY3, FY4 FY5, FY6, FY7 Total

BCDS Expenditure 141,118 172,014 275,695 588,827

Provincial Own Resources 87,725 112,331 222,767 422,823

Proposed Foreign Assistance 53,393 59,682 52,928 166,003

USD million 534 597 529 1,660

21. GoB’s strategy will be a rolling plan and not a one off event. It is a living document to evolve and

move on to next phase as implementation moves forward. With a view to accord a high level

ownership to it; GoB plans to take the BCDS forward under the stewardship of a high profile

Cabinet Committee led by the Chief Minister himself. At operational level the Additional Chief

Secretary Development will be responsible for the implementation through a central Program

Monitoring & Coordinating Unit (PMCU) in the P&D Department for coordination, reporting and

oversight. At department level, dedicated M&E Units will be responsible for implementation

through their regular tiers and undertaking departmental monitoring, reporting and coordination.

Periodic TPVs are to be undertaken by the PMCU through the third party

22. BCDS is likely to come across multiple risks and a few of these have been discussed in chapter 10

together with their possible management. The most serious risk to BCDS would be on account of

political instability and break down of civilian rules, which can simply undo the entire strategy.

There are great expectations from the new Government and if these expectations are not properly

managed, these could be the undoing of the “common man’s government”. This could trigger

violence as a result of unfulfilled expectations. The Communication Strategy would be accordingly

key in managing the peoples’ expectations

23. The overall success of the strategy will be measured on the basis of an overarching Monitoring

Indicators that broadly put across the status of Balochistan in terms of overall poverty and the basic

health, education, water supply, sanitation; GPI and other indicators. Of this the most central and

overarching indicator which will reflect the achievements of this strategy will be the Multi-

dimensional Poverty with the target to reduce this by half from the present 52% to 25%.

Table M.1: BCDS Monitoring Indicators

Sr. Indicators Existing 2016-17 2020-21

1 Poverty (Multidimensional) 52% 45% 25%

2 NER Primary (6-10) 56 60 70

3 NER Middle (11-13) 25 35 50

4 NER Secondary (14-15) 14 25 35

5 Gender Parity Index Primary 0.58 0.65 0.8

6 Coverage of overall Immunization 45% 60% 80%

7 Infant Mortality per 1000 live births 72 65 45

8 U5 Mortality per 1000 live births 89 75 55

9 Skilled Attendant at Delivery 29% 60% 80%

10 Piped Water Supply inside Houses 21% 30% 60%

11 Rural Sanitation (No System) 23% 15% 5%

12 Houses with unsafe roofs 20% 10% 5%


01 Approach


1. Approach

1.1 The Balochistan Comprehensive Development Strategy (BCDS) 2013-2020 encompasses

Government of Balochistan’s vision for the future of people of Balochistan. It lays down the

Government’s overarching development framework for the province based on the aspirations of the

people for steering it towards a more planned growth path. Balochistan has remained trapped under

endemic poverty and underdevelopment for too long and this development deficit has accentuated

peoples’ marginalization to a great degree. The democratic dispensation in the country, coupled

with recent constitutional and fiscal corrections entail noteworthy prospects for greater political,

administrative and fiscal empowerment for the province and it is therefore an opportune time to lay

down the building blocks for a development strategy aiming to partially overcome some structural

roadblocks and lay out a doable priority program.

1.2 There are tremendous expectations from the new Government in Balochistan, which is seen to be a

“common man’s government”. If these expectations are not properly managed, they could be

the undoing of the “common man’s government”. The people of Balochistan, like the whole of

the human race, have human needs that must be satisfied. Whether it be subsistence (food and

shelter in order to survive), identity (to belong), security (to feel safe), affection (to feel valued,

respected and loved), or participation (to be part of decisions and events that shape one’s life), the

non-satisfaction of any of these human needs causes tensions that may lead to violent conflict. The

understanding of the sources of societal tensions is a key consideration of any development strategy

– which must speak to the processes that ameliorate these tensions. Tensions and societal fractures

hamper development; hence this BCDS articulates the capacity of the Government of Balochistan

to address these tensions in the framework of BCDS.

1.3 BCDS is planned to serve not only as the cornerstone of development in Balochistan, but also as the

anchor for peace and social cohesion through (i) addressing the root causes of the conflict in the

Province, and (ii) ensuring that the intent and activities of the development do not exacerbate

current violent conflicts or trigger new ones. Further, BCDS speaks to the Millennium

Development Goals (MDGs) and the Acceleration Framework, and is alive to the policy shift from

infrastructure to production and social sectors, while understanding that a province like Balochistan

will require critical infrastructure for boosting economy and livelihoods.

1.4 The analysis of factors that have caused societal fractures and lack of social cohesion in Balochistan

include governance practices that do not promote the fulfillment of the needs of the people of

Balochistan. It entails recognition that governance across the board (political, economic,

institutional, etc.) needs to be placed on a higher footing if it is to serve the people of the province

adequately. Other fractures that hamper the development of the province includes the debilitating

state of insecurity – whether it is from within or from outside the province; social and ethnic

tensions - again whether intra-province or between the province and other parts of Pakistan; or the

manner of administration and use of natural resources. The response of the province to these

fractures and tensions will determine the future development.

1.5 The cross cutting theme being carried across the development strategy is that the extent of past

neglect makes the task quite intricate as by now the general disillusionments’ have bred alienation.

The positive aspect is that despite all odds, people are yearning for change and an end to the

despondency and despair. It is therefore an urgent need to put across sincere efforts that lays the

foundation for a stronger economy and which begins to show signs of results. It is such a clear


signal which will breed more hope and gradually lessen the drift. The strategy is thus pillared on

partnerships and wider peoples’ participation for ensuring that this effort will lead to more inclusive

growth; it puts women empowerment as integral to growth; and it envisions development that

would create jobs and improves incomes at every stage to keep the promise alive all the way.

1.6 Government understands that the increasingly complex security situation poses the biggest risk to

BCDS. GoB has accordingly drawn a conflict sensitive framework on the premises that the GoB

may have to implement the BCDS within the existing uncertainties. GoB is cognizant that other

than internal security Balochistan has certain inherent weaknesses; many of which are planned to be

attended under the BCDS, however a few of these are likely to remain for some time. BCDS is

pillared on high and wider impact interventions; many innovative interventions are part of the

strategy which has been experimented within the country albeit in simpler form to allow for water

floating for some time. In terms of sequencing, the BCDS will propose a few select pro-poor

initiatives right at the beginning for tactical gains towards confidence building.

1.7 The BCDS is structured in a manner where it lays down a brief background information and based

on this identifies the core priorities and then lists out the major strategy components. It provides

broad cost estimates for the envisioned components and brings across a living document which will

be reviewed and refined it as it moves forward. Despite the security dimension the strategy is

pitched on slightly an ambitious note. The key to the BCDS will be better fiscal management as

without straightening the existing fiscal management practices and without ushering in more

accountable public sector governance, the strategy may not be able to yield the desired outcomes.

The BCDS strongly advocates not just better coordination amongst federal, provincial and donor

programs but urges for joint action on strategic interventions for strong and accountable

implementation and impacts.


02 Balochistan;

Polity and State of

Development


2. Balochistan; Polity and State of Development

2.1 History and Polity

2.1.1 Balochistan is the largest province of Pakistan in terms of land area, comprising 44% of the national

territory and in contrast is the smallest by far in terms of population. Constituting about 5% of the

total country’s population it is also the most under developed province of the country having multi-

dimensional, widespread and deep poverty. 70% of the population resides in scattered, sparsely

populated settlements around water resources amid an arid and rugged terrain.

2.1.2 Balochistan was integrated into British India and that too partially at the end of the nineteenth

century.1 The British interests in Balochistan were primarily strategic i.e. to secure India’s western

frontier against Russian expansionism and for attaining this, the British gradually fostered feudal

order (alien to Balochistan’s historical traditions) in order to strengthen dependence of local

chieftains on the colonial administration.2 On the eve of independence, Balochistan lacked the type

of representative institutions to which power was transferred by colonial authorities in much of the

rest of India. Balochistan’s accession to Pakistan was not therefore underwritten by the type of

political legitimacy that characterized the accession of the other provinces (with the exception of

Azad and occupied Kashmir).

2.1.3 The province attained provincial status only in 1970 as its first provincial assembly became

functional in 1972 – a quarter of a century after Pakistan’s independence. Prior to this it was being

governed as an autonomous state comprising mainly four areas i.e. Tribal, Leased, British

Balochistan and Kalat States. The Kalat States included autonomous states of Kalat, Kharan,

Mekran and Lasbela, which were being ruled by Khans, Nawabs and Jams until 1951. In 1951 these

states joined to form Balochistan States Union until dissolution of one-unit. The first elected

provincial government was soon dismissed leading to straining of relationship between the province

and the centre. These relations have in fact remained stressed both prior to 1972 as well as

subsequently with very brief interludes of representative governments. The relations however came

under further stress after the assassination of Nawab Akbar Bugti, which is believed to have

provided stimulus to the current wave of insurgency- like situation.

2.1.4 The administrative structure created by the British largely remains in place, and continues to

underperform, and the state of development and participation remains much below the national

averages. In addition, the macroeconomic framework adopted by the country during most of its

history has accentuated income and asset distributional inequalities both, within Balochistan and

between the province and the rest of the country. Balochistan’s relative underdevelopment vis-à-vis

the rest of Pakistan is illustrated most graphically by the fact that a large proportion of its gas

resources are transmitted for use outside the province. Political fragmentation, ethnic division and

isolation, lack of synergy between state and community decision making institutions, growing

economic inequalities and abject poverty have fuelled popular resentment, alienation in a wider

section of the society. The security situation in certain pockets of the province has deteriorated and

this has been a major hurdle both with respect to political institution building as well as growth.

Nevertheless it must not be forgotten that Balochistan has enjoyed intermittent periods of political

stability for example, during most of the 1980sand 1990s.

1Scholtz. F. (2002): Nomadism and Colonialism in Balochistan 1872 – 1972. Karachi: Oxford University Press.

2Baloch, (1958); A history of Balochistan. Karachi: Karachi Royal Book Company


2.2 Demography; Geography and Connectivity:

2.2.1 Balochistan’s geography and demography

has dictated its development history to a

significant extent. The defining contrasts of

stupendous land mass nearly half of the

country’s area inhabited by only 5% of

population is what underlies the pattern of

thinly populated remote settlements having

low access to services. The provincial

governments in Balochistan have been

pleading for reversing the decades old

population –based revenue distribution

formula amongst the provinces for

distribution of divisible pool resources citing high cost of providing per unit of services to such

demographics. The relatively sparse population of the province estimated to be 9.6 million for 2013

is concentrated regionally and there are vast areas of unpopulated wilderness. Population is mainly

concentrated in the north east in a narrow corridor linking the Quetta –Pishin region extending to

the border of Eastern Punjab and the South East bordering Karachi.

2.2.2 According to 1998 census the three major ethnic groups in Balochistan are Balochi; Brahui and

Pashtun. Other smaller ethnic groups included Sindhis; Punjabis; and Seraikis. There is a significant

population of the Afghan refugees in Balochistan concentrated in the north and north western

districts. As per UNHCR Census of Afghans in Pakistan, a quarter of the Afghan refugees

(769,268) were in Balochistan in 2005.

2.2.3 Balochistan has presently 44% population under the age of 15 years signifying a high dependency

ratio but at the same time a population bulge that can provide the essential workforce to the

economy if adequately galvanized through education and appropriate skills. This entails higher

pressure on the labour market in coming years and the absorption of the workforce will be highly

dependent on the knowledge and abilities of the youth. Another important dimension is

urbanization. The overall urbanization has increased in the province and the rate of growth of the

urban population during 1981-2011 significantly exceeds that of the provincial population as a

whole. However, the urban to total population ratio is still only 24% and it is only in Quetta where

that ratio is around 74% and some other districts like Sibi, Lasbela, Khuzdar and Gwadar, where

this ratio is around 30%.

2.2.4 Connectivity has strategic dimensions for Balochistan; given its distance both from river Indus, a

lifeline for the country and the national trade corridor which runs parallel to the Indus, Balochistan

is thus disconnected from the two major factors of growth in the country. So much so that the

province could not reap the benefits of its hydrocarbon resources due to non-viability because of

distances and now these factors are posing similar challenges for the take-off of Gwadar port and

the mineral wealth of the province. While the road network has been slightly extended in recent

past however the road density is still just 0.15 km per sq. km which is less than half the national

average and lowest among Pakistan’s four provinces. Lack of connectivity within the province as

well as between the main areas of Balochistan population concentrates and growth poles

surrounding Balochistan remains a major development challenge. This lack of connectivity is also

derived from the British administrative system’s establishment of a rail network system which


principally catered to Britain’s colonial interest in the north western border areas of the sub-

continent.3

2.2.5 These peculiarities aside, the province has huge locational advantages as well. It lies at the cultural

and geographical crossroads of South Asia; Central Asia and the Middle East, having over 10,256

km border with neighboring Afghanistan and Iran and over 750 km coastline, which makes it an

ideal candidate for a regional hub for transportation and trade. Poverty of financial (not physical)

resources reflects lack of integration with the growth poles which surround Balochistan – in

Karachi, Rahimyar Khan, Sistan, Oman, UAE and Central Asia. Balochistan is adjacent to the

Straits of Hormuz through which a large proportion of the world’s oil is transmitted. Yet spread

effects from the growth poles to the Balochistan economy have been minimal. This is so despite the

fact that a sizeable population of the province (linked to local clans) resides in neighboring regions.

One of the challenges is to galvanize the Balochistan residents in other regions and countries’ is to

invest in and transfer knowledge and technology to Balochistan. Simultaneously the on-going

efforts to make Gwadar port fully operational, will need to be boosted up and this in turn will spur

the process of integration of Balochistan’s economy with surrounding regions.

2.3 Growth and Structural impediments

2.3.1 According to World Bank estimations Balochistan’s GPP grew at a faster rate than Pakistan’s

GNP during FY89 to FY97. Growth decelerated in subsequent years and Balochistan’s share of

Pakistan’s GNP fell from 4.2% in the mid-1990s to 3.4% in FY05. The World Bank notes

particularly high growth rate fluctuations in Balochistan relative to other provinces during FY96 to

FY05. It also shows a much larger share of the agricultural sector in Balochistan’s GPP in FY11

than that of the other provinces. Real growth in Balochistan has been significantly higher during

FY01 to FY04 when it averaged about 9% per annum. During FY07 to FY11 annual rates of

growth of the major economic sectors varied significantly.

2.3.2 The GPP estimates for Balochistan for the period 2005 to 2011 show considerable variation from

the estimation for the 1991 to 2005 period, which require a review for arriving at consistent data.

In addition, it is now important for the provincial government to gradually develop a local capacity

for measuring Balochistan’s GPP from primary sources so that the provincial government is able

to assess the economic growth and structural changes over time itself and undertake its own

corrections.

3Malik, M. B. K. (1961) Hundred years of Pakistan railways: Pakistan Western Railway, 1861-1961; Pakistan

Eastern Railway, 1862-1962. Karachi: Karachi Royal Book Company


2.3.3 The commodity producing sectors turned

in a lackluster growth performance

during FY07 to FY11. Mining value

added declined every year of the period

with the average growth in this period

being -2.6%.Agricultural value added

growth has fluctuated widely during the

FY07-FY11 period, with an average

growth of 3.2%. Livestock dominates

Balochistan agriculture and in FY11 it

accounted for about three fourths of

agricultural value added. As far as the

service sectors are concerned, there has

been a persistent decline in the financial

sector throughout FY07 – FY11. The

growth in the electricity, gas and

transport sectors has been encouraging

with an average growth of 15.6% in this

period. The average growth rate of trade

in this period has been 3.9%. The overall

GPP of the province grew at an average

growth rate of 4.2% in the period 2007 to 2011.

2.3.4 If the structural changes are examined for the period from FY00 to FY11, it shows that Agriculture

continued to constitute about one third of the GPP; mining sector’s share fell from 8.6% to 4.6%;

utilities decreased from 4.3% to 3.2% and community services also declined from 15.4% to 11.7%

in this period. The positives are that the share of manufacturing improved from 6.7% to 15.9% and

trade also increased from 16.3% to 18.7%. Balochistan’s growth performance during the last

decade is a cause of national concern partially because of the relatively narrow gap between

national and provincial production per capita conceals the distributional unevenness which

characterizes the Balochistan economy.

Table 2.1: Estimates of Structural Changes in Balochistan GPP overFY00 to FY11

2000-01 2004-05 2010-11

Agriculture, Fishing and Forestry 34.4 32.3 34.0

Mining 8.6 6.8 4.6

Manufacturing 6.7 12.7 15.9

Electricity, gas and water 4.3 2.8 3.2

Construction 1.5 1.2 0.8

Trade 16.3 18.8 18.7

Transport 8.2 13.2 8.7

Finance 0.6 0.7 0.7

Community Services 15.4 14.4 11.7

Ownership of Dwellings 1.8 1.4 1.2

Balochistan GPP 97.8 104.3 99.5

Source: World Bank (2011) Table 1.

(Note: calculation differences may arise, purely as a result of rounding off)

Table 2. : Average Annual Growth Rates of Value

Added of Major GPP Sectors of Balochistan FY07 to

FY11

Sectors

Agriculture, Fishing and Forestry 3.22

Mining -2.61

Manufacturing 3.60

Electricity, gas and water 15.60

Construction 4.48

Trade 3.90

Transport 15.89

Finance and Real Estate -9.69

Community and Personal Services 5.65

Ownership of Dwellings 11.84

GPP 4.22

World Bank (2011) Table 3


2.4 Widespread and Deep Poverty

2.4.1 The biggest development challenge in the province today is rampant poverty across the province.

While there are multiple research and information available on the poverty levels in the province

compared to the other provinces however the recent research based report by Arif Naveed and

Nazim Ali titled, ‘District Profile of Poverty in Pakistan’ (SDPI; 2012) brings out the extent of

multi-dimensional poverty in different districts of Pakistan reflecting the poverty dimensions and

its regional variations. The research suggest that poverty in Pakistan needs to be seen as a state of

multiple deprivations as an alternative to the traditional income/consumption based poverty

measure for taking into account multifaceted deprivations faced by the poor. The highest incidence

of poverty is in Balochistan where 52% of the households are under poverty and of these three

fourths of the households (72%) in the rural areas are poor.

Source: Clustered Deprivation; District Profile of Poverty in Pakistan; SDPI (2012)

2.4.2 The above report takes into account the overall state of human development including health,

education; living conditions along with incomes and wealth. The overall state of human

development continues to lag behind the national indicators significantly. While Pakistan as a

whole is lagging behind most of the MDGs, situation in Balochistan is worst-off. The % of 10 years

and above who have ever attended school is 42 for Balochistan as against the national average of

53%. The NER primary (6 to10) in Balochistan is 54% against the national average of 62%. As per

the UN Human Development Report 2011, on Pakistan, there is considerable variation across

provinces with respect to HDI. Among the districts, Jhelum (Punjab) has the highest HDI rank at

0.703 and Dera Bugti, the resource rich district in Balochistan, is the lowest at 0.285.

2.4.3 There exist wide gender disparities in the province. In 2008/09, the GPI for primary education was

0.58 for the province which was 0.26 points below the national level of 0.84. The share of women

in employment in the non- agriculture sector in Balochistan is poorer than in other provinces. In

2009, the female labor force participation (including the agriculture sector) was recorded at 11.4%

as compared to 66% for males. Likewise progress on reducing child mortality is 36% below

national average.

2.4.4 Pakistan Labor Force 2009-10 shows that unemployment rose to 5.6% of the total workforce and

this was slightly higher than the 2008-09 survey. The unemployment in Balochistan was assessed to

be 7.9%. More significantly the quality of employment is worse in Balochistan both in terms of

productivity as well as types of jobs available. The projected increase of population from 8.9

million in 2010 to 12.7 million by 2025 poses a major challenge for policy makers in terms of

0

0.2

0.4

0.6

0.8

Balochistan KPK Punjab Sindh

0.29

0.18 0.1

0.2

0.72

0.43

0.28

0.46 0.52

0.32

0.19

0.33

Urban

Rural

Total

Fig:2.1- Province wise Incidence of Multi-Dimensional poverty


improving educational attainments for better employability. According to Balochistan Economic

Report 2008, the labor force in Balochistan could rise to 7.2 million in 2025 and based on the

historic employment elasticity, creating additional 158,000 jobs annually for these workers should

be possible with an annual growth rate of 6.5%.

2.5 Water Constraints

2.5.1 Balochistan is water scarce province with arid to hyper arid climate and low precipitation levels,

Agriculture and livestock are the lifelines of large majority of the people as such water shortages in

the province determine the productivity and incomes in the province. Despite developments in the

water sector, population growth, urbanization, mining sector and industrialization, are posing

greater demands on water resources of the province. The expanding imbalance between supply and

demand, has led to shortages and unhealthy competition amongst end-users, besides causing severe

environmental degradation in the form of: a) persistent increase in waterlogging and salinity in the

Indus Basin Irrigation System (IBIS) area of Pat Feeder and Khirther canals; b) inefficient and

ineffective irrigation management in minor irrigation schemes leading to loss of precious water; c)

lowering of water table and mining of groundwater in the three over-drawn basins (Pishin-Lora,

Nari and Zhob); d) neglect of Sailaba and rain fed Khushkaba farming systems with reduced

recharge to the groundwater; and e) intrusion of saline water into fresh groundwater reservoirs in

the coastal areas and at certain inland locations.

2.5.2 Floodwater is the largest resource of water in the province, almost two-third of total available water

but a large part of this is underutilized and in contrast the ground water constitutes about 4% and it

is over utilized due to lopsided incentive policy regime. Another critical issue requiring attention is

the productivity of the IBIS canal command water together with that of harnessing and storing flood

water for overcoming water shortages in the province.

2.6 Weak Private Sector and Constraints of Trained Manpower

2.6.1 One of the important challenges to growth and development is comparatively small size of private

sector and enterprises and which in turn are constrained on account of multiple limitations. The

private sector growth is impeded on account of limited financial services including banking

services; weak human resource base and small markets.

2.6.2 As per World Bank’s estimates there are approximately 150,000 enterprises in the province and a

large number of these is small and informal. These are in the shape of small traders who cater to the

local demand. Wholesale and retail accounts for about 75% of the total enterprises, whereas in other

provinces it is usually half. These enterprises do not carry any spin off effects with either backward

or forward linkages and nor do these create prosperity. These are predominantly individual owned

informal businesses yielding one or two jobs. More importantly such micro businesses are neither

linked -up with finance, technology or any other resources given the small size of business. Most of

the industry is located in Hub due to its proximity to Karachi and the rice mills are located mostly

in the Jafferabad district. Most of the technological and financial resources are therefore from the

neighboring provinces.

2.6.3 The financial sector within Balochistan is considerably thin in terms of number of bank branches;

presence of SMEs, microfinance and insurance services; the volume of credit disbursed and the

number of borrowers. During 2012 the total bank loans disbursed were Rs.12 billion which

calculated to a mere 8.7% of the bank deposits of Rs.138 billion. The bank deposits have shown a

steady increase from Rs. 71 billion in 2008 to Rs.138 billion in 2012; however the disbursements

have fallen from Rs.15 billion to a dismal amount of Rs. 12 billion. In addition over two thirds of


the bank branches are located in Quetta division with Quetta alone housing 123 branches of the

total 281 in the province. The overall credit disbursement by the SME and Micro finance

institutions is limited at Rs.3.7 billion and Rs.155 million respectively in 2011-12 and the total

number of borrowers are around 22,000 altogether.

2.6.4 Growth of private sector is also impeded on account of non-availability of skilled labor and non-

availability of educated and professional workforce required by modern economies. Labor force is

largely illiterate and most of the skill sets are again restricted to few given markets making slightly

bigger businesses non- viable due to non -availability of many essential skills.

2.7 Security Dimension

2.7.1 The security landscape in Balochistan has become exceedingly complex with the presence of

assortment of insurgents; religious extremists and sectarian groups. Other than the continuing

attacks by the insurgents, a number of religiously motivated militant and sectarian groups have also

expanded their area of operation across Balochistan especially in and around Quetta. There have

been series of unprecedented attacks on the Shia Hazara community in Quetta and their intensity

increased tremendously in early 2013 creating a wave of protests and sit-ins not only by the

affected families and the community but throughout Pakistan culminating in the dismissal of the

provincial government in January 2013.

2.7.2 Since 2008, more than 1997 incidents of target killings/sectarian attacks have taken place killing

more than 1894 people and injuring around 3266. In this period 1875 terrorist attacks have occurred

other than many rocket attacks.4 Simultaneously the issue of missing persons and dead bodies also

remains a burning issue. The GoB has attended to the issuing of beefing- up the security in multiple

ways and there have been significant budgetary increases to provide resources for handling the

complex law & order situation in the province. The Law & Order expenditure has been increased

by over 40% in last three years from Rs. 9.4 billion in 2009-10 to Rs. 13.5 billion in CY.

2.7.3 Government recognizes that the gravity of the situation requires measures beyond just better

deployments and vigilance. It requires a high level of intelligence and greater coordination among all the

civil and military agencies. In addition to the efforts at political reconciliation especially in the

background of fast approaching elections and creating space for the alienated political forces is generally

believed to be the ultimate way towards de- escalation of extremely difficult situation in the province.

2.8 Fiscal Framework

2.8.1 Balochistan has remained entangled in a very tight fiscal situation since decades on account of a

fiscal framework where a large part of the national revenue was being collected at the federal level

and being distributed on population based formula. The province remained at a receiving end

having extremely negligible own resource base to cater for the huge development needs of the

province. The incomes on account of its oil and gas products have also remained low compared to

the type of value these resources have accorded for rest of the country and the private sector. It was

this chronic low revenue kitty and huge expenditure requirements for a scattered population and

inability to finance both the high cost of service delivery including the infrastructure which is

evident from the high levels of under development across the province.

2.8.2 The 7th NFC Award increased the overall share of Balochistan from the chronic 5% of share in the

Divisible Pool Taxes to 9.1% subsequent to the shift away from the population-based distribution

criteria to a slightly multi- criteria distribution. This plus the enlargement of provincial share in the

4 Government of Balochistan; Briefing on Law & Order in Balochistan (2012)


Divisible Pool from 45% to 56% and then 57.5% also impacted the revenue increase. A major

breakthrough has been the acceptance of Balochistan’s long standing demand for arrears of Royalty

and Excise on Natural Gas and the Gas Development Surcharge under which the federation has

agreed to provide these arrears assessed to be Rs. 120 billion in 10- years’ time to the provincial

government for next 12 years.

Table F.1: Balochistan Revenue Post 7th

NFC (2010-2013) (Rs. In Million)

2010-11 2011-12

Budget

2012-13 Growth

Federal Tax Assignment 88,191 98,435 114,206 14%

Straight Transfers plus GST on

Services

17,356 17,393 16,860 -1%

Federal Non Development Grants 12,000 12,827 12,870 4%

Tax Receipts 1,156 1,352 1,385 9%

Non-Tax 2,957 3,749 3,822 14%

Total Receipts 121,660 133,756 149,143 11%

Provincial Own Receipts’ 4,113 5,101 5,207 13%

Source: Provincial Accounts 2012-13

2.8.3 This has improved provincial revenues and there has been an increase of 58% in the federal tax

transfers from 2009-10 to 2012-13, which has enabled the provincial government to make required

increases both on recurrent and development side. In post NFC first two years, the average annual

increase in the Federal Tax Assignment has been 14%, whereas the straight transfers on account of

royalties on Oil and gas and development surcharge on gas have remained static in this period

(Table F.1). The provincial own-revenue collection however, constitutes a small portion of the

overall revenue resources of the province. Within last few years there has also been a positive surge

in the provincial own revenues primarily on account of an increase from the royalties and income

from the mineral sector which increased from Rs. 500 million in 2008-09 to Rs. 3.7 billion in 2011-

12; a five-fold increase in three years. All this has helped to increase the overall revenues of the

provincial government from Rs.68 billion in 2009-10 to the estimated Rs. 149billion for 2012-13;

about 120% increase. From 2010-11 onwards the average annual growth in total provincial

revenues is 11%

Table F.2: Balochistan Post NFC Expenditure (2010-11 to 2012-13) (Rs. In Million)

Heads 2010-11 2011-12 Budget

2012-13 Growth

Pay 20,660 38,432 28,982 18%

Allowances 22,972 23,366 22,360 -1%

Pay/Allowances 43,632 61,798 51,342 8%

Pension 3,680 5,500 7,500 43%

Debt Servicing 5,084 3,816 3,341 -19%

Total Estab Plus Debt 52,396 71,114 62,182 9%

Non salary 44,123 31,437 45,096 1%

Current Exp 96,519 102,551 107,279 5%

Development Exp 37,260 43,173 33,198 -6%

Total Provincial Exp 133,779 145,724 140,477 2%

Source: Provincial Accounts


2.8.4 On the expenditure side, the major expenditure is on account of pay and allowances which

presently constitutes 49% of the current revenue expenditure. The pay and allowances plus the

pension and debt servicing together constitute about 58% of the provincial current revenue

expenditure. This leaves 40% for non-salary spending which is a very comfortable space for

operational expenses. However a large part of this has been used for creating development fund for

the mines development. The provincial PSDP presently constitutes 23% of total provincial

expenditure. Despite these revenue increases, the expenditure requirements of Balochistan are huge.

This is not only on account of the backlog on physical infrastructure and human development but

also on account of the fact that given the state of under development and low presence of private

sector, the public sector expenditure will be the major source of investments in the province in

albeit all sectors. Further, given the huge canvas and competing demands, the provincial

government will only be able to improve the effectiveness of public spending if it able to partly

overcome the current trends under public spending.

i. In order to create greater fiscal space for priority sectors, GoB plans to keep the cost of

establishment under control by avoiding unnecessary new recruitments.

ii. Non- salary Budgets require a scientific costing and improvements aligned with adequate

financial management and oversight mechanisms

iii. GoB will evolve a policy framework together with some lean institutional arrangement to

handle the post 18th Amendment matters relating to provincial rights over petroleum

exploration etc.

iv. Development spending will be prioritized for creating the urgently required physical

infrastructure, and channelling appropriate investments in the people’s health and education,

which will trigger a more inclusive growth.

v. Public Sector Development schemes had proliferated to 1452 having a throw forward of Rs. 62

billion. The portfolio has been rationalized recently and the GoB plans to undertake a highly

prioritized and well considered portfolio in coming days.

vi. The current donor funded portfolio is very small having an allocation of approximately of US$

28 million, this is planned to be enhanced subsequent to finalization of BCDS.


03 Governance, Security and

Sustainability


3. Governance, Security and Sustainability

3.1 Governance

3.1.1 The Government of Balochistan and a wider section of the society now generally agree that

Balochistan’s problems have become overly complex due to long neglect as well as multi-

dimensional aspects impinging on the political and security environment in the province. Despite

all odds, the key to restoring political stability and security preponderantly lies in greater

democratization of the governance process. This implies the need to encourage greater internal

democratization processes for a genuine peoples’ participation in the decision making. In addition,

the media and the civil society would be required to play a rigorous role for creating greater

awareness for more robust accountability. One of the encouraging signs during both the 1990s and

since 2002 periods of democratic rule in Pakistan has been the formation of coalition governments

and in the case of Balochistan these have incorporated almost the entire political spectrum in the

province. This can be seen as indicative of the existence of a broad political consensus in the

province, which may now be encouraged to be widened by creating space for the nationalist

parties.

3.1.2 There are several examples from within the region which reflect how improved governance can

change, the speed of development as well as its context. Mr. Nitish Kumar, the Chief Minister of

Bihar, India visited Pakistan in November 2012 and his major discourse during this visit revolved

around ‘governance’. He shared his experiences with the Chief Ministers of Sindh and Punjab

separately and many other political leaders. He was quoted saying, “seven years back we started

our quest for establishing governance and ensuring all around development, which was both a

challenge and opportunity…. With our resolve for growth with justice manifold achievements

have been marked across sectors like governance, law & order, human resource development,

infrastructure and agriculture.….. good governance is the mantra of our growth story …”.5

Box 3.1: Bihar’s Governance experience

5Daily Dawn Nov 10, 2012

Bihar is one of India’s largest and poorest states, with 8.5% of India’s population and only 1.6% of its gross domestic product. Until 2007, economic growth in Bihar was much lower than the rest of the country. It had dismal indicators with 48% literacy; high levels of IMR and over 54% underweight children. The state of infrastructure was poor and the common challenges faced by the province were poor service delivery, lack of accountability and a dismal law & order situation. It is in this background that Nitish Kumar’s government initiated wide ranging and home grown reform program. These reforms are being widely acclaimed and these have helped in spiraling Bihar’s economic growth rate to over 10% between 2004-05 to 2008-09 from the earlier 4.5% between 1999-00 and 2003-04.


3.1.2 GoB acknowledges that Balochistan’s deeply entrenched problems require a governance

dispensation which can deliver better quality services and impacts on larger section of the society.

Such governance dispensation can gradually begin to take shape as the new government triggers a

conscious effort to involve greater number of stakeholders in the process for instance;

At the Provincial Assembly level, prioritize establishment of the Public Accounts Committee

and build the capacity of the PAC to provide meaningful oversight over use of public funds.

Support creation of an Inter-party Women’s Caucus that articulates the issues affecting

women without reference to party affiliation.

In order to enhance accountability and transparency, support the development of a

Communication Strategy of the Government of Balochistan for keeping the public informed

on aspects of government business.

Strengthen the judiciary at magistrate level through direct input in the engagement of

additional magistrates; and provide support to link the formal justice methods with traditional

and alternative dispute resolution methods of the administration of justice.

Create a dialogue platform for traditional leaders to share experiences and ideas on the

development of their areas of jurisdiction. This platform would provide traditional leaders

with means to collectively approach the Provincial Government on common issues; and to

synergize traditional approaches to administration with modern approaches of the

Government of Balochistan.

Work with civil society and academic institutions to provide spaces for the public to learn

about their rights, and to encourage participation and peacefully engage in civil affairs of

their community or Province.

3.1.3 Improving governance poses formidable challenges however, the GoB is hopeful that with efforts

at institution building; greater involvement of people and better accountability it will be able to

strengthen governance. Also GoB plans to work with alternate delivery systems for producing

results. There are already some robust examples in the shape of PPHI and BEF, which have been

able to show credible achievements on service delivery. GoB is considering greater partnerships

with private sector for operations requiring speedy decisions and results, such as for development

of minerals; oil & gas sector; industrial estates; harbors; value addition and creating supply chain

and marketing companies etc. Also it considers involvement of communities critical for proper

program designs and for transparent implementation.

3.1.4 The subject of institutional restructuring and civil services reform has been debated at many

forums and the latest in this context; the National Commission for Governance Reforms (NCGR)

acknowledged that the performance of the civil service in terms of efficiency and attitude towards

common citizens does not meet the exigencies of the modern times. Civil Services Reform is

complex and difficult to implement. The GoB plans to streamline the posting and transfers

mechanism; devise systems for recording performances of civil servants.

3.1.5 Improving the financial management will strengthen the provincial internal controls and will

eventually be beneficial for effective public expenditures. The federal government has been

supporting the accounting and reporting reforms under the PIFRA project since last many years.

In Balochistan the process needs to be speeded-up through a greater engagement with the office


of Controller General of Accounts. The other areas requiring attention is; procurement reforms

and the M&E frameworks. GoB plans to seek technical assistance for procurement rules, manuals

and capacity development. On the M&E side, the strengthening of these frameworks will enable

the government to move towards results based management. Also there is seriousness to establish

the Public Accounts Committee, as it’s a constitutional requirement for an oversight over public

expenditures.

3.1.6 In addition the provincial government is required to take up additional and expanded

responsibilities in multiple sectors in the post 18th Amendment to the Constitution scenario. In

this context other than revising the Rules of Business; the Government may also be required to

undertake legislation on certain components though the Government has already taken up

legislation on a few of such components like Article 25A of the Constitution. GoB has already

taken cognizance of the situation relating to the Oil and Gas sector in the context of Article 172

(3) and has initiated creation of institutional frameworks for being able to handle the

opportunities created through this provision. There is however a need to undertake a review of

capacity gaps for handling post 18th Amendment responsibilities adequately.

Strategy

i. Government plans to undertake legislation for “Compulsory Public Information” to

institutionalize greater dissemination of critical information for public. Also there will be greater

efforts to link the community and state institutions & civil society voice for bringing in greater

ownership as well as transparency.

ii. GoB plans to strengthen the Balochistan Public Service Commission (BPSC) for enabling

it to evolve highly credible recruitment system through greater outsourcing of conduct of

examinations; greater use of ICT for efficiency and transparency

iii. Speeding –up the PIFRA reform actions through proactive engagement with the Controller

General’s office. Of the 33 Sites; 25 have already been computerized and there is need to provide

on-line connectivity to the Finance Department for daily monitoring of expenditure and receipts

and creating connectivity with departments.

iv. Undertaking procurement reforms by first re- examining the earlier draft law and developing the

rules; establishing Provincial Procurement Authority and Procurement Unit for regulating the

provincial procurement.

v. Strengthening the Anti- corruption establishment by bringing in experts, better systems for

tracking and creating linkages with procurement reforms and M&E framework.

vi. Constituting Public Accounts Committee as per constitutional requirements.

vii. Establishing Human Resource Management Information System (HRMIS) for an efficient

management of civil servants. From transfer postings, HR development, evaluation and

promotions to be managed on the basis of HRMIS. The posting transfers of senior officers to be

undertaken on the basis of Key Performance Indicators for all departments and evaluating civil

servants’ performance on the basis of KPIs.

viii. A well designed capacity development program for GoB officers in multiple disciplines including

procurement; monitoring; evaluation; reporting etc.


ix. Undertaking pilot computerization of Land Records. The existing system of management of land

records is outdated and does not guarantee reliability of titles and their use as collateral. GoB

plans to begin with the computerization of Land Records in Quetta to establish an efficient,

transparent and accessible system and gradually expand to other urban areas in phases on the

basis of lessons learnt.

x. Computerization of different taxes under the E&T Department.

xi. Unfolding Medium Term Budget Frameworks gradually with one or two departments to move

towards planned and result based budgets.

xii. Strengthening M&E Units of all the major departments through greater use of ICT and improving

real time transfer of information. The Punjab Government has recently introduced the ‘Smart

Monitoring Regime’, by making use of ‘smart phones’ for instance in the Lady Health

Supervisors monitoring in Layyah.

xiii. Greater outsourcing of validation and evaluation for improving accountability.

xiv. Most significantly is involving the community through various forums; groups and in varying

ways for seeking their participation and involving them in the oversight through organized

community feedback mechanisms

xv. The Government of Balochistan would develop a comprehensive Communication Strategy which

would embrace all forms of communication, and especially ensure that innovative modern

information technology methods are fully utilized to reach Balochistan citizens across the

province. Specific and targeted information for the youth and women would be especially

encouraged.

Table 3A; Governance (Rs. In million)

Sr.

No Strategy

FY1,

FY2

FY3,

FY4

FY5, FY6,

FY7 Total

Proposed FA

Portion

1 Strengthening BPSC 59 16 27 102

2 Strengthening Anti-Corruption

Establishment 81 65 83 229

3 Developing Central HRIMS 126 79 - 204

4 ICT in Revenue Collection (E&T and

Stamp Duties) 147 146 - 292 205

5 Land Revenue Management Information

System (Phase-1) 132 143 224 499 349

6 Procurement Reforms 204 222 37 462

7 MTBF & Results Based budgets 68 62 98 228

8 Capacity Development of Officers 70 77 130 277

9 Strengthening M&E, undertaking TPVs 539 452 727 1,719 1,203

Total 1,426 1,262 1,326 4,012 1,757

(Note: slight calculation differences may arise, purely as a result of rounding off)

88,191 98,435 114,206 14%

17,356 17,393 16,860 -1%

12,000 12,827 12,870 4%

1,156 1,352 1,385 9%

2,957 3,749 3,822 14%

88,191 98,435 114,206 14%


3.2 Security

3.2.1 Although there are more than half a dozen structural constraints to growth and development in

Balochistan, the most forbidding barrier however, is the state of security in the province. The

security scene has become overly complex with the presence of hodgepodge of insurgents;

extremist religious groups and sectarian outfits. Other than the on-going insurgent attacks, a number

of religiously motivated militant and sectarian groups have also expanded their area of operation

across Balochistan especially in and around Quetta. The successive attacks on the Shia Hazara

community in Quetta, which took an unprecedented turn in the beginning of 2013 have shaken up

the social fabric of the city and these prompted a shock wave across the country, which led to

further political instability in the province.

3.2.2 The situation has remained unsettled

for more than seven years since it

escalated in 2006 and in the last five

years, more than 1997 incidents of

target killings/sectarian attacks have

taken place killing more than 1894

people and injuring around 3266. In

this period many terrorist attacks have

occurred including many rocket

attacks.6 The issue of missing persons

is a burning issue and lately the

sectarian mass killings through high

intensity bomb blasts have added yet another dimension to the instability in the province.

3.2.3 Government has attempted to respond to the increasingly complicated situation through beefing- up

the security in multiple ways and there have been significant budgetary increases to provide

resources for handling what is proving to be irrepressible law & order situation in the province. The

government has pushed up financial resources to handle the law & order through better policing

however the overall structural and system weaknesses are such which may not yield definitive

results so easily. The budgetary outlays have increased by over 30% since 2009-10, from Rs. 5.8

billion to Rs. 13.5 billion in 2012-13.

Table:3.2 Law & Order Budget 2009-10 to 2012-13

RE 2009-10 RE 2010-11 RE 2011-12 BE 2012/13 Growth Rate

Total Current

Expenditures 52,801.9 73,458.5 85,261.0 107,279.4 27%

General Administration 7,230.3 11,380.7 14,252.6 21,606.0 44%

Law & Order 5,828.4 10,951.4 12,734.4 13,530.2 32%

% of Current Budget 11% 15% 15% 13%

Source: GoB Budget Documents

6Government of Balochistan; Briefing on Law & Order in Balochistan (2012)

Table: 3.1 Target / Sectarian Killings 2007-2012

Target Total

Incidents Killed Injured

Police 341 273 413

FC 426 301 817

Settlers 404 309 392

Sectarian 145 419 484

Others 681 592 1215

Total 1997 1894 3321

Source: Home Department, GoB


3.2.4 The GoB has already taken some measures to contain the law & order situation; such as:

Improvements in security arrangements in and around Quetta including greater deployment of

security staff and monitoring.

Rigorous monitoring of explosives/ other chemicals to contain possible misuse

Data Compilation of foreigners in the province to ensure adequate arrangements

Purchase of Scanners and other equipment for Police / Levies

Re- compilation of the data of Proclaimed Offenders for their arrest

Greater security deployment from Quetta to Taftan for protecting Zaireens

Special surveillance of members of banned organizations/ terrorists

Revival of Levies Force in “B” area.

Activation of CID to combat crimes & capacity building of Levies

3.2.5 GoB realizes that the gravity of the situation requires measures beyond just better deployments and

vigilance. It requires a high level of intelligence and greater coordination among all the civil and

military agencies. In addition the efforts at political reconciliation for creating space for the

alienated political forces is generally believed to be the ultimate way towards de- escalation of

extremely difficult situation in the province.

Strategy

i. GoB plans to upgrade the capacity of the Intelligence System especially the Intelligence Bureau by

enhancing the use of ICT for multiple purposes including creation of databases of wanted persons;

proclaimed offenders and digitalization of intelligence information. Concurrently the coordination

levels with the military intelligence require improvement for an effective preventive strategy.

ii. Developing a Special Anti –Terrorism Force with state -of -art training and under a dedicated command

and with a different compensation package to create a highly specialized force to handle terrorist attacks,

both the intelligence and attack management. In addition recruitment of 5000 police personnel to handle

requirements of increase in population and greater police coverage.

iv. Speeding up the establishment of a Forensic Lab that was already under consideration with the

Government. It may be set-up through adequate technical support.

v. Finalizing and enacting the “Witness Protection Act’, for strengthening the investigations and

prosecution of terrorist acts.

vi. Revitalizing the investigation system and manpower capacities by evolving a dedicated training

program and equipping the investigation officers with required resources for an effective

investigation system.

Punjab is setting-up about 100 Model Police Stations which would primarily rely on ICT and technological solutions for greater efficiency and transparency. These would for instance have computerized FIRs, Criminal Records, Record of Case Property, Recovered Weapons and Police duties etc. The system is expected to provide a central source of data for easy access to all the cases and current investigation information to internal as well as external stakeholders.

Box 3.2: Model Police Stations in Punjab


vii. Strengthening the Police Stations by upgrading the physical infrastructure, the telecommunication

system and introducing ICT for creating data bases of convicts, proclaimed offenders, suspects, etc.

viii. Enhancing the operational resources of the Police as well as Levies on the basis of scientific

baseline. These include resources for greater mobility, allowances, arms & ammunitions, wireless

systems, etc.

ix. Government has already initiated an intervention to install CCTVs for installation of 500 plus

cameras covering whole city of Quetta along with Entry/Exit gates on 06 locations together with an

entire implementation plan including design and management of control room and its allied

facilities. This was planned and proposals were being solicited. On successful implementation such

systems may be installed in other major cities and specific installations which are in the high

sensitive zones.

x. In addition to above following steps are recommended towards managing security

In order to improve civil/military relations, support the training of police and levies in

community policing. Support the introduction of human rights training into the curriculum of

military and staff colleges in Balochistan.

Establish Civil- Military Liaison Committees that can serve as the conduit for communication

between the armed forces (Army, FC, Police and Levies) on the one hand and the public on

the other.

Establish “Peace Dividend” programs in areas where peace has or is being established. This

would entail social and micro-business programs for the youth and women.

Table 3B:Security (Rs. In million)

Sr.

No

Strategy FY1,

FY2

FY3,

FY4

FY5, FY6,

FY7

Total Proposed

FA Portion

1 Strengthening Intelligence Bureau 294 236 328 857 600

2 Special Anti-Terrorism Force &

additional 5000 police personnel 2,029 1,848 3,078 6,955 2,086

3 Strengthening Prosecution 200 200 200 600 -

4 Establishment of Forensic Lab 1,365 267 390 2,022 1,011

5 Installation of CCTVs in Quetta

and other Sensitive Points 930 542 371 1,843 -

6 Upgrade of Police Station' physical

infrastructure and ICT 851 1,028 988 2,866 -

7 Enhancing resources (vehicles;

Telecommunications; arms &

ammunition; other equipment)

800 1,500 3,440 5,740 -

Total 6,469 5,621 8,795 20,883 3,697



04 Social Safety Nets and

Pro- poor Initiatives; Upfront


4. Social Safety Nets and Pro- poor Initiatives; Upfront

i The GoB is cognizant of the gravity of situation and is keen to unfold a robust poverty reduction

program, which can have speedier and wider impacts, upfront of the CDS. The latest SDPI research

on multidimensional poverty shows that the poverty levels in Balochistan are extremely high

where overall 52% of the households are under poverty and of these three fourths of the households

(72%) are in rural areas. Given these scales and the state of economy plus the security dynamics

which apart from other factors is also fuelled by the state of deprivation, it is only logical to bring

the poverty reduction programs upfront. Bringing these interventions ahead of the CDS is likely to

create a greater buy-in amongst a wider section of the society as was witnessed in the case of

creation of 5000 jobs under the Aghaz-e-Huqooq-e Balochistan package. This is reinforced by the

fact that most of the other components of CDS including human development, infrastructure

upgrade and the economic revival would require some time to evolve and translate into benefits.

ii The Government recognizes that these programs need to be designed with care having clarity about

objectives; appropriate designs and implementing mechanism which can ensure slightly less

complicated and more credible reach out for target beneficiaries. It is recognized that one of the

popular strategies adopted by many countries for reducing poverty is direct cash transfers such as

the Benazir Income Support Program (BISP) in our country. Within BISP, however there is now a

gradual shift towards interventions that can create sustainable livelihoods for poor such as by way

of skill development or micro-enterprise development.

iii As a part of this strategy, the GoB plans to develop a union council-wise database of the various

categories of poor for using it for a range of interventions. This would be initially borrowed from

the BISP Poverty Assessment Survey and subsequently maintained; updated through a dedicated

institutional set- up within P&D Department. Availability of a credible data would enable the

government in better targeting and monitoring of a wide range of programs other than the pro poor

interventions. This will also act as a baseline for evaluating impacts.

Priority Areas

4.1 Evolving Stipend Based Skill Development Program

4.1.1 Given the exigency to provide some form of income to the youth both educated as well as

uneducated and simultaneously the need to develop a skilled workforce, GoB plans to evolve

stipend-based skill-development programs. These will carry twin benefits of providing temporary

incomes which will work as social safety-net and will incentivize the target beneficiaries to

undertake the technical/ skill development programs which can enable them to get some gainful

employment for sustainable livelihoods. The GoP had earlier implemented a National Internship

Program under which stipend-based internships were provided to eligible graduates across Pakistan.

4.1.2 The overall strategy for reducing poverty through skill development programs will however hinge

on the way this intervention is designed and managed. GoB plans to target the youth both young

girls and boys. There can be two segments; one which is designed for the educated and other for the

uneducated in a range of fields and sectors which are likely to have greater chances of employment

in the province. Further, given the constraints of availability of quality training facilities in the

province, it is desirable to plan a greater part of these trainings in collaboration with Federal

NAVTEC and the three provincial governments for placement of the selected beneficiaries in

quality training institutions under provincial TEVTAs. Also the GoB may directly seek proposals


from some of the larger autonomous skill development and training institutions in the public/private

sector.

4.1.3 Another segment of the stipend based skill development program would be the internship programs

in collaboration with the oil & gas sector and with some of the major industries in the provinces.

These would be preferably financed by the provincial government in order to evolve a

professionally designed program which can be carried forward without burdening the potential

partners. The provincial government would however consider utilizing the Petroleum Bonus funds

for financing these interventions. Both these interventions would take extra care to include a

maximum number of women candidates and ensure a compulsory participation of at least one third

of available slots.

4.2 Women Focused Skill Development

4.2.1 The GoB acknowledges that

women empowerment will be

critical for any poverty reduction

program, without which

Balochistan will not be able to

move out of the vicious circle of

poverty and under development.

GoB firstly, plans to maintain

some minimum quotas for women

beneficiaries under the stipend –

based skill development

interventions. Secondly, two

dedicated skill development

streams; one for training of

nurses/midwives and the other for

a wider coverage of beneficiaries including components of microfinance and skill development in

crafts as well as other livelihoods is being planned to be initiated for women. The nurses/midwives

training will improve employability chances of women and will provide the direly required

workforce for health sector.

4.2.2 The second intervention could be “Women Focused Micro-Finance for Crafts & Other

Livelihoods”. This can be carried forward in collaboration with MFIs. It needs to be borne in mind

that alike other constraints; the disbursement of microfinance in Balochistan has also remained low.

There are only 23 MFP offices, 18,000 active borrowers and the volume of microfinance disbursed

is pathetically less than 1% of the amount disbursed nationally. The basic arguments for this

exclusion are the high transaction costs; high risks perceived due to non -availability of collateral

and lack of credit history and low volumes of credit amongst others. Lack of financing for

Agriculture; livestock; fisheries; crafts as well as other sectors is believed to be a major constraint

to enterprise development and its expansion in the province.


Table 4.1: Microfinance Scenario; Pakistan Sept 2012

Province Offices Active

Borrowers

Micro Credit

(Rs. In million)

MF Potential (No. of

Borrowers)

Penetration

Rate (%)

Balochistan 23 18,256 166 1,656,762 1%

KPK 55 72,224 877 4,083,817 2%

Punjab 1,164 1,635,923 26,073 15,233,924 11%

Sindh 490 622,797 10,147 6,357,795 10%

AJK 26 30,352 296 - -

GB 15 10,459 361 - -

FATA - - - - -

ICT 7 4,149 54 74,750 6%

Total 1,780 2,394,160 37,974 27,407,048 9%

Source: Pakistan Microfinance Network

4.2.3 The “Women Focused Micro-Finance for Crafts & Other Livelihood” would concentrate on

providing ‘design and precision trainings in crafts’ and developing small enterprises through market

linkages. The ultimate aim would be to develop the crafts gradually into a full-fledged industry, this

may be slightly a long-term objective, however given the size of this sector and the number of

women involved in this component, a well-conceived and adequately implemented intervention can

be beneficial for a large segment of poor women in Balochistan in partnership with RSPs and

PPAF. A holistic intervention can be undertaken in partnership with PPAF, MFIs and RSPs for

targeting about 50,000 women.

Box 4.1: Punjab's Partnership with 'Akhuwat' for Micro Credit Program

4.2.4 In addition, GoB plans to establish Microfinance Bank for partially overcoming the constraints of

availability of microfinance in the province. GoB would explore possibilities of partnership with

private sector by making an equity injection in the investment, however in case of not being able to

find appropriate partnership it would move ahead and create the Bank after a proper feasibility. It

will be established on proper commercial lines by bringing in qualified personnel and internal

control systems. The GoB would also create an endowment for providing subsidized credit for well-

targeted poor beneficiaries.

4.3 Strengthening and Expanding Existing Poverty Reduction Programs

4.3.1 GoB is already implementing a poverty reduction program through livelihood improvement in 9

districts of the province. This is co-financed by UNDP and GoB and some components have been

financed by Australian Aid; WFP and Bait-ul Mal. It was started in 1999 and was extended into

Government of Punjab has initiated a Micro Finance Self Employment Scheme for

unemployed and skilled youth with a sum of Rs. 1 billion for providing interest free credits

through Akhuwat, a reputable microfinance institution. Akhuwat is fully responsible for

loan processing, disbursement and recovery. The average loan size is Rs. 50,000, with a

repayment period of three years. The scheme is expected to provide finance to skilled

youth for initiating their micro enterprises.


second phase in 2007. It is an integrated development program aiming to reach out to 90,000 poor

in the target 9 districts for increasing agriculture, livestock productivity, improve access to social

services, develop vocational skills, conserve natural resources and strengthen communities with

focus on women. The program is probably being considered for Phase- 3 and at this stage it will be

desirable to review and redesign the program especially in the context of thin spread of resources

and connecting beneficiaries with small enterprises for higher impacts. GoB can partner with more

than one implementing RSPs so that it is easier to implement a more intensive program with much

wider outreach.

4.3.2 Similarly, the IFAD supported “Gwadar-Lasbela Livelihood Support Project” aiming to improve

livelihood of small fishermen households too would be speeded-up. The community mobilization

programs generally take significant time to take off, however given the fact that the RSP concerned

namely NRSP has a regional presence, it can be approached to fast track the community

mobilization base work for a slightly speedy implementation of other components.

4.3.3 The scale of Zakat disbursements is very small in the province about Rs. 200 million. Also its

disbursements alike other federal and provincial entities is staggered into multiple components

including ghuzara allowance, education stipends, Madaris, health care, marriage allowance and

rehabilitation grant. Other than being small amounts, the identification of mustahqeen is also not

based on any survey etc.

Strategy

i- GoB plans to set-up a lean and dedicated institutional set-up, a PMU within P&D department for

institutional management of the Pro- poor programs. The Unit will develop a data base of the poor in

the province. A beginning would be made by getting the poverty assessment data from the BISP and

developing it further and updating it regularly for a range of activities from; i) using the data as

baseline for various interventions, ii) program targeting and monitoring impacts. This can

subsequently be shared with line departments for various other interventions such as immunization,

MNCH, enrolments, housing, credits etc.

ii- Undertaking a stipend-based skill development program for the educated and the uneducated youth

in a range of fields likely to have greater chances of employment in the province. Given the

constraints of availability of quality training facilities in the province, GoB plans to undertake this

program in collaboration with range of partners including NAVTEC, the three sister provincial

governments and provincial TEVTAs; private sector training institutions. GoB plans to target a

minimum of 30,000 youth in the province for this skill development program in next three years.

iii- Evolving and implementing internship/training programs for 5,000 youth in collaboration with the

Oil & Gas companies as well as other major companies in the province. The terms of partnership

can be flexible to suit different partners however the GoB to finance the cost of stipend and living

expenses of trainees. Partnering companies would be approached to bear the cost of

internship/training.

iv- Establishing partnerships with private sector especially major Oil & Gas and other companies for

operating a few selected technical/vocational training institutions in the province. These to be

operated under management contracts with clear roles, responsibilities and targets.

v- Evolving a well- designed program for providing quality training for 1250 nurses and midwives in

collaboration with some major health providing institutions having state-of art capacity for such

trainings.


vi- Bringing together a consortium of MFIs for evolving a “Women Focused Micro-Finance for Crafts

& other Livelihoods” program for 50,000 women. For this either SBP would be approached to

evolve a special credit insurance scheme which can be partly co-financed by GoB.

vii- Establish Microfinance Bank either in partnership with private sector and design it appropriately on

commercial lines with adequate systems and with dedicated funds for subsidizing the credit for

poor on the basis of notified transparent criteria.

viii- Expanded Area Development Program through RSPs and other partners to target 200,000

households with focus on women.

Table 4A: Pro- Poor Programs (Rs. in million)

Sr.

No

Strategy FY1, FY2 FY3, FY4 FY5, FY6,

FY7

Total Proposed

FA Portion

1 PMU and Data Management 50 70 180 300 -

2 Skill Development Through TEVTAs 1,200 2,400 3,600 7,200 -

3 Internship/Training Program with

Oil& Gas & others 150 200 400 750 -

4 Women Nurses/ Midwives Training 600 700 860 2,160 -

5 Women Focused Microfinance with

support of RSPs/ PPAF 500 1,000 1,000 2,500 2,500

6 Expanded Area Development

Program 1,500 1,500 2,000 5,000 4,000

7 Establish a Microfinance Bank 2,000 2,000 4,000 8,000 -

Total 6,000 7,870 12,040 25,910 6,500


05 Service Delivery


5. Service Delivery

5.1 Education Sector

5.1.1 The Government of Balochistan recognizes the critical importance of education towards its vision

for inclusive growth in the province. The education sector is presently beset with similar pattern of

lagging behind as other sectors of the economy. It is confronted with the challenges of low literacy

and enrolments, high level of dropouts from the schooling system particularly at primary level,

high repetition rates, low completion rates, acute regional and gender inequalities, teachers’

absenteeism, closed/dysfunctional schools all leading to unsatisfactory performances. On the

demand side, poverty, illiteracy and at times cultural practices affect household decisions to send

children to school. These factors also impact the ability of the population to demand an appropriate

level of service delivery and to undertake school performance accountability. On the supply side,

low investments and weak management and delivery systems have led to dismal results.

Priority Areas

Issue of Access; School Participation

5.1.2 The level of school participation in Balochistan is significantly less than other three provinces. The

school participation rates at all levels are low especially for girls. Only 20% women in Balochistan

have ever attended school and 13% women have completed primary or above. The primary Net

Enrolment Rate (NER) in the province is 47% compared to the national NER of 57% at this level.

The participation at middle school level and secondary are worst. NER at middle level for age

groups 11- 13 reduces to 23.5% and at secondary level it reduces to 12.5% for age groups 14 to 15.

The NER for girls at middle and secondary level is only 13% and 4% respectively (Table 5.1).

Table: 5.1 Comparative Education Indicators Pakistan

Gender Punjab Sindh KPK Balochistan

Pop. that ever attended school M 72 72 71 61

F 53 47 35 20

Pop. that completed primary or above M 60 62 57 48

F 44 40 26 13

NER Primary (6-10) M 73 68 71 68

F 68 55 56 40

NER Middle (11-13) M 38 39 40 34

F 32 32 25 13

NER Secondary (14-15) M 24 26 23 21

F 21 20 14 4

Literacy Rate 15+ M 67 71 65 56

F 47 43 28 15

Source: PSLM 2010-11

5.1.3 A comparison of participation rates in Balochistan since last 6 years exhibit some progress however

the pace of progress is painfully slow as at this pace the province is neither likely to meet the

MDGs nor will it be able to overcome the vicious cycle of deprivation and under development. In

last 6 years the literacy rate has inched from 38% to 45% and the primary NER (5-9)has moved

from 37% to 47%. While it does reflect some progress, this is much below what is required to poise

Balochistan for a steady growth path. At both age groups for middle level there is a clear decline


from the primary level NERs reflecting high dropout rates; which declines further at the secondary

level (Table 5.2).

Table: 5.2 Net Enrolment Rates (2004-05 to 2010-11)

2004-05 2005-06 2006-07 2007-08 2008-09 2010-11

NER Primary (5-9) 37 34 41 41 44 47

NER Primary (6-10) 44 39 50 51 54 56

NER Middle ( 10-12) 8 7 9 12 11 13

NER Middle (11-13) 17 14 19 22 22 25

NER Secondary(13-14) 5 5 5 5 5 6

NER Secondary(14-15) 9 10 10 12 11 14

Source: PSLM 2004-05 to 2010-11

5.1.4 As per Balochistan Education Management Information System (BEMIS) 2010-11, the total

enrolled children in Balochistan in 2010-11 excluding the katchi class was 998,581. In addition, the

number of children in Madressas’ and in private sector has been estimated to be 83,000 and

200,000 approximately7. According to NEMIS 2008-09 data, the number of private schools is 871

and enrolments are 191,380. All in all, the total enrolled children add up to approximately 1.32

million and roughly 1.3 million children being out of school (projected population of age cohorts of

5 to 9 and 10 to 14 years in 2013 is 2.6 million).

5.1.5 The Balochistan Education Foundation (BEF) has lately exhibited a robust participation in the

education sector with the support of World Bank. It has evolved partnerships with both private

sector owners of low fee schools as well as local communities under the Community Schools

Program (CSP). BEF is presently supporting 648 community schools and 207 private sector

schools. Community Schools are set up when at least 20 students can be enrolled by the community

and there is no girls’ school within a radius of 20 km. The program is implemented through

community organizations and BEF monitors performance of schools on the basis of certain

indicators. Under both the streams, BEF has by now enrolled about 48,000 children.

Infrastructure Gaps

5.1.6 An important constraint of access in

Balochistan is non-availability of school

infrastructure. Only about 10,000 settlements,

out of the 22,000, have schools available and

the issue of distances remains a challenge.

Again of the 12,293 schools in the province,

87% are primary schools; 8% are middle and

5% are high schools. Of the 10,668 primary

schools; an overriding number have only one to

two room structures having one/two teachers.

These are thus multi-grade teaching schools having scanty infrastructure and almost no budgets

except the teacher salary. Hence other than non- availability of schools in about half the

settlements, the schools available have bare minimum of resources. Approximately 57% schools

have no drinking water, 46% no boundary wall, 52% no electricity and 29% are without a toilet

facility, while 9% are without any shelter.

7 Policy Analysis of Education In Balochistan, UNESCO, 2011


Learning Outcomes & Teachers

5.1.7 GoB has lately added 5000 teachers to the sector taking the strength to 48,346. While the BEMIS

2010-11 shows an average Student Teacher Ratio (STR) of 1:21, in reality there is no credible

system in place which can confirm teacher presence in schools. Reportedly, a large number of

teachers are either formally on leave or informally away. All in all, one of the major challenges of

the education sector is absence of a system that ensures that the schools are functional. This is

despite the fact that the province spends approximately 17 to 18% of the total budget on education

of which over 86% is salary expenditure; which unfortunately is not converting into service.

5.1.8 The school system across Pakistan does not focus on the learning outcomes as issues of access have

predominated. There is a general perception that most of the quality inputs encourage rote learning

including teachers and the assessment systems. The textbooks in vogue at all levels have remained

stagnant now for over a decade despite the National Curriculum 2006 policy framework, which presents

a wide landscape for development of textbooks which can be more responsive to current times. GoB

under this strategy is considering gradually adapt the 4 –year B.Ed program by moving away from PTC

and CT qualifications. Presently, GoB has initiated a process for adoption of standards for pre‐service

teacher education with the assistance of the USAID funded ‘Pre‐Step Project’.

5.1.9 The GoB has lately evolved an Education Sector Plan (BESP) emphasizing on quality of education

for sustainability and equity. The BESP recognizes the importance of private schools and has

included this component in the sector plan. It incorporates the existing programs into its fold such

as the ECE component developed by Save the Children; the pre- service component is based on the

Pre -Step project and the community schools component is based on the World Bank supported

Balochistan Education Support Program. The Plan recognizes the issues of low investment and

governance problems. It recognizes that GoB needs to improve enrolment significantly to build a

momentum towards universal education and that this may require public private partnerships and

other strategies beyond the routine.

Education Spending

5.1.10 Government recognizes that it needs to undertake innovative and bold decisions for taking a quantum

leap forward in improving enrolments and quality of education. This will necessarily require increase in

investments both on the recurrent side as well as the development budget side. Currently GoB is

spending 16 to 17% of provincial expenditures on education (Table 5.3). This needs to be scaled- up

significantly for at least next 10 years to provide the required funding for the sector.

Table: 5.3 Balochistan Education Expenditure 2006-07 to 2011-12 (Rs. In million)

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12

Grand Total Expenditure 48,395 55,486 63,239 68,731 128,855 144,473

Total Education 8,506 8,729 11,635 13,528 19,409 23,981

Primary 3,008 3,402 8,559 9,909 7,456 7,683

Secondary 2,370 2,559 332 160 6,567 9,791

University & College Edu 568 668 1,563 955 3,155 3,895

Tech. Edu &Teacher Training 330 366 473 536 30 50

Others/ Administration 2,230 1,734 708 1,968 1,008 1,271

Education as percentage of

Total Budget

18% 16% 18% 20% 15% 17%

Source: GoB Accounts 2006-7 to 2011-12


Strategy

GoB has moved forward in last few years and by now it has developed an Education Sector Plan with

detailed planning framework. The BCDS reiterates the major components of the BESP and highlights a

few additional structural changes for catching up on the big gaps in the sector:

i. Improving Access to Education

With a view to overcome infrastructure gaps for enhancing the access to education for gradually

meeting the commitments made under Article 25A. Towards this objective, GoB plans to enroll a

minimum of 500,000 children in next five years through multiple interventions and players. The

GoB strategy lays down the priorities as under:

a. School Expansion Under ‘Community School Model’

Based on a proper mapping of schools and out of school children, the Government plans to

establish, ‘Community Schools’ in the locations not having any school facility in the

vicinity and having eligible children. These schools would be primarily considered for areas

having low population density where establishing a regular primary school is not economically

viable. Under this approach the building for the community school is to be provided by the

local community and the GoB will finance the cost of the teacher, who will preferably be hired

from within the community. GoB will undertake the teacher’s training and involve the

community in oversight. Under this component, school locations will be prioritized on the

basis of an agreed criteria and preference will be accorded for female schools.

b. Utilizing Existing Capacity and Making Schools ‘Child Friendly’

There will be emphasis on improving utilization of existing schools by way of monitoring

enrolments for ensuring that existing schools are fully utilized. Given the fact that about 96%

of primary schools have 2 rooms or less, the GoB will gradually provide 5 rooms to all the

primary schools in phases by prioritizing the schools with higher and potential enrolment.

These steps are envisaged to be critical for moving towards universal enrolments for

compliance with the Article 25-A.

In addition, the GoB would undertake concrete steps to improve the overall school

environment both through improvements in school designs; better upkeep maintenance and

gradually providing missing facilities. On the software side dedicated attention will be given

to curb tendencies towards corporal punishments or any other form of child abuse. For this

serious efforts would be made to ensure that the teachers exhibit a caring and friendly attitude

towards the children by making this a part of their CPD programs and subsequently evaluating

this through monitoring and assessment components.

c. School Up-gradation

Given the steep structural pyramid where of the 12,293 schools over 87% schools are primary,

the Government will undertake a well-planned up-gradation of schools based on surveys and

examination of the demographic data. BESP envisages a ratio of 1:3 for middle to primary and

a ratio of 1:2 for secondary to middle for undertaking up-gradation of schools. Given the

scattered settlements and sparse population in Balochistan, it may at times become difficult to


comply with these ratios however, the Government is clear that gradually opportunities for full

schooling will be made to all parts of the province based on adequate need assessment.

Government of Balochistan has further approved up- gradation of a few select high schools to

higher secondary level in view of severe shortage of opportunities for college education in

large parts of the province. This up -gradation is planned to be undertaken after proper need

assessment including sensitivity towards availability of opportunities for female students and

subsequently creating required infrastructure and providing facilities in the existing high

schools.

d. Early Childhood Education (ECE)

GoB is conscious of the benefits of ECE as a foundation for quality education and under the

strategy it plans to move forward towards the objective of gradually institutionalizing the ECE

in all primary schools in phases. Under this it is planned to evolve a ECE policy framework,

increase awareness amongst policy planners and implementers and gradually execute the

program in phases after creating the required infrastructure and services including availability

of teachers and training materials.

e. Inclusive Education

Moving forward on the objective of “Inclusive Education” GoB plans to gradually create

opportunities of schooling for children with special requirements and/or having any disability.

This is planned to be undertaken by initially creating awareness and developing greater

understanding of the requirements. This would be followed-up by creating necessary

institutional framework including availability of classrooms; trained teachers; training

material; other facilities for introducing these opportunities in the schools at all levels in

phases.

ii. Education Quality and Child Learning Outcomes

a) Merit Based Teacher Recruitment with preference for Local Teachers

GoB plans to hire local teachers preferably female teachers for the proposed, ‘Community Schools

’ under its strategy to expand the availability of primary school facilities to all the eligible

children in the province. For this particular initiative as well as for other categories and levels of

teachers, the GoB plans to henceforth recruit teachers through a third party test for installing system

of merit in the province. Preference will be given to female teachers for primary levels. For the

junior and high school teachers the overall qualification requirement will be raised with greater

emphasis on subject proficiency.

b) Preparing & Implementing Curriculum Implementation Framework

The 18th Amendment to the Constitution has devolved the responsibility of curriculum to the

provincial governments. Accordingly the GoB is initially faced with the challenge to implement

the 2006 curriculum, which requires strengthening of the capacity of the Education Department

and its attached offices especially the BoC, BTBB and the PITE. Under BESP, GoB has planned

an implementation framework involving an implementation process which includes an organized

dissemination of the curriculum; initiating the process of textbooks’ development in accordance

with the prescribed policy and then finally undertaking in-service as well as pre-service teachers


training on the new textbooks. The process subsequently involves raising the capacity of the BoC

to be able to review the current curriculum and gradually gain the technical expertise for bringing

innovative changes in the curriculum subsequently.

c) Text Books’ Revision and Publishing through Out-sourcing

The Balochistan Sector Plan calls for revision of National Textbooks and Learning Materials

Policy and its adaptation as per provincial needs. Additionally, it specifies timelines for

developing standards for textbooks and mechanism for feedback and review and finally their

development in accordance with the National Curriculum 2006. The National Textbooks Policy

2007 envisages textbooks development through private sector developers and publishers rather

than the Textbook Boards, which are now required to regulate the process of textbooks publication

through a competitive process. The GoB has begun the process for publication of textbooks within

the parameters of 2007 policy (as adapted for Balochistan).

The GoB accordingly plans to improve the capacity of the BTBB especially in the context of its

revised role of a regulator and it also plans to involve the private sector publishers in the capacity

development programs for gradually increasing their capability to participate in this process

through multiple innovative ways. Under the strategy, the GoB plans to undertake professional

development of the in-service teachers on the new curriculum and textbooks as well as its

introduction in the pre-service trainings.

d) Teacher Development Program

The existing teacher training programs both in-service as well as pre service suffer from various

institutional weaknesses, most significant being that these have now little relevance to the

education standards envisaged at various levels and the impact of these trainings on children’s

learning levels. The overall capacity of PITE as well as the elementary colleges remains weak in

this context. For the in- service teacher training; the strategy thus includes:

Undertaking a teachers’ competencies baseline especially in terms of their capacity

relating to the curriculum

Developing a Continuous Professional Development (CPD) program based on the

teachers’ competencies assessment. This includes developing the capacity of PITE in

developing and executing a systematic CPD program through a well-organized teachers’

selection based on database and subsequently evaluating the training impacts through

class room level assessment

For the pre-service teacher training the strategy focus is to:

Gradually expand the Pre- Step ADE and adapt the HEC developed curriculum for the 4

year B.Ed program in phases and phase out the PTC, CTC and 2 year B.Ed after 5 years.

Encourage the existing teachers to undertake these programs

GoB to consider legislation for institutionalizing regulation of the degree awarding

institutions as well as the private sector pre- service training institutions for ensuring their

compliance with the prescribed standards for pre- service training programs. This entails an

extensive capacity development of the BoC and strengthening of the elementary colleges.


e) Strengthening School Assessment System

GoB recognizes the need to increase the accountability of school performances measured in

terms of child performances. The school level examinations have little credibility and the

Board examinations happen at the end of school years and are also riddled with serious issues

of credibility. Regular and credible Student Assessment System can provide numerous

benefits to all the stakeholders. Such Assessment is likely to yield regular information on

child learning levels for the administration; the parents and the communities. This information

can further assist the education managers in improving the teacher inputs; the training content

and materials for making the teaching and learning more effective. This information can also

ultimately become the major monitoring and accountability tool for the administration and the

parents. Many countries have experimented with universal third party school examinations for

credible assessment of child attainments at certain grade level such as grade 6 and 8

(reflecting on primary and middle school level learning).

In this background, the GoB plans to make the Internal and External Assessment systems

more effective and in coming years consider evolving more credible system of Student

Assessment as a permanent and institutionalized feature to help parents and community to

hold the teachers, school management and the government accountable on its performance. Its

objectives are to link the mostly input driven reform agenda to outcomes; to use the process

and results of Assessment to affect attitudinal changes in teachers, for instance helping them

to graduate from rote learning model to teaching mode that help to inculcate analytical skills

in pupils. This is expected to evolve as a major monitoring tool for determining school

performances including the overall performance of school level management; the teachers

performance and overall school environment and whether it contributed to learning

attainments or not.

iii. Governance and Management

a) Strengthening School Management System

For strengthening school level management, GoB would explore possibilities of creating an

Education Executive Cadre with two sub cadres; a) District Planning and Management and b)

Head Master Cadre. These will be created by fresh hiring through BPSC.

a. In phase- 1; 3000 head teachers will be hired for providing dedicated heads to existing and

new schools having bigger enrolment.

b. For District Management and Planning side, GoB would hire Education Managers through

competitive examination. These positions require technical know-how of management;

finance & accounts; procurement; monitoring etc. These skills are not available in the current

staffing

b) Empowering Schools’ Administration at School Level

It is impossible to locate teachers and provide other resources in a cost effective manner in

thousands of scattered shelter less, one room/ two room and one/two teacher schools. The multi-

grade teaching in large number of schools cannot possibly provide any desirable levels of

children’s attainments. It is thus important to restructure the existing school structure and one of

the major policy shifts envisions school consolidation and greater school level autonomy and


accountability. One of the most important components is to “Strengthen School Administration at

School Level”. At present the school administration is non –existent. The school administration

has little say on budget disbursement, on teacher transfers and other school matters. It is thus

critical to empower school level management in budget and other school affairs in phases

beginning with the bigger schools.

a. Appoint dedicated head teachers/ principals in schools in phases

b. Provide financial powers to school head teachers/principals.

c. Provide chowkidar and sanitary staff in these schools.

d. Principals/ head teachers to be empowered to recommend transfers of non-performing

teachers; which should be binding on the competent authority.

e. Accountability process be instituted for head teacher’s performance and non-performing head

teachers be transferred/ show caused for serious action.

f. An independent Student Assessment System to be the major tool for evaluating school

performance.

c. Increase in School Non-salary budgets:

Historically, most of the schools have received paltry sums in non-salary budgets. GoB plans to

increase the non-salary budgets of schools in phases beginning with bigger schools and after

instituting adequate systems for managing and monitoring the school expenditures at school level.

The increased cash inflows will be backed up by capacity building, administrative and regulatory

reforms aimed at making school level management accountable to communities and

simultaneously out-sourcing monitoring of expenditures. The non-salary budgets would finance

costs of learning materials; repair maintenance and cost of transportation for children coming

beyond a given distance.

The determination of school budgets; their disbursement and a well-designed monitoring system

would be required to be put in place to oversee transparent usage of School Specific Budgets

subsequent to increase in the Non salary budgets and creation of a school management structure

having the drawing and disbursement powers.

d. Strengthening the Institutional Capacity

Education Management & Information System

The BEMIS constitutes the major foundation for policy planning in the province and over the

years the Education Management Information System has been improved under various

initiatives. There is however a need to strengthen the overall capacity of this unit in multiple

areas for strengthening the credibility and timeliness of the data as well as to use the

information as a monitoring tool. Other than organizing dedicated trainings for various

components of the Annual School Census including improvements in the survey forms; the

survey mechanisms and data compilation, the capacity development will also focus on

improving the systems for improving the timeliness of data. The district tiers capacities and

systems will also be improved.

Regulation of Private Sector & Madressas

The GoB plans to undertake the regulation of the private sector schools as well as the

Madressas in the province towards the overall objective of holistic education management in


the province. The Government would subsequently engage with the Madressas for considering

adoption of the National Curriculum in their studies.

Monitoring and Evaluation

GoB plans to strengthen the M& E framework significantly for ascertaining the school

performances on the basis of regular internal assessment and evaluation. Other than

strengthening of School Assessment system; the capacity development of BEMIS, the GoB is

considering to introduce ICT based monitoring system for a very close and institutionalized

oversight mechanism especially in the context of teachers’ availability; student attendances;

lesson plans covered and follow up on school calendar etc.

iv. Literacy and Non -Formal Education

GoB strategy envisages a much stronger Non-Formal Education (NFE) system for achieving the

targets of Article 25- A. In this regard it plans to encourage institutional coordination between the

NFE and the functional literacy programs. It further envisages a Non -Formal Sector under the

aegis of the Education Department for being able to provide accelerated learning programs to the

children who have either dropped out or have remained out of school.

The plan envisages development of a policy framework with a focus on the adolescents and the

youth. This requires institutional strengthening including availability of better trained teachers and

more effective training materials and an outcome based approached towards the subject. It also

entails significant expansion as currently the NFE component’s reach out is limited.

v. Institutionalizing Public Private Partnerships

GoB recognizes that it needs to partner with the private sector to reach out to large number of out

of school children on urgency basis. Under this:

a. Strengthen BEF efforts to support enrolment of a minimum of 200,000 additional children

under both the streams i.e. Community and Private sector by reinforcing the quality

components further through teacher support; learning materials as well as stronger student

assessment system etc. The BEF would need to examine the current performance of private

school partners and evolve innovate methods of raising standards by strengthening the

performance based contracts and also stepping in to undertake private sector strengthening.

b. GoB would simultaneously explore possibilities of performance based partnership contracts

with some reputable and bigger private sector educational institutions for establishing new

schools and/or long term performance-based management contracts of some existing

government schools under low cost private sector model to enroll additional children on per

child cost basis. These contracts would be monitored either through BEF or a separate

regulatory board.

v. Strategic Interventions

a) Introducing IT in all Middle & High Schools

GoB plans to introduce IT teaching in all the high and middle schools in the province. With a view

to install an accountable and quality training mechanism, GoB plans to out-source this to private

IT Companies on the basis of competitive bidding on per child basis. This intervention will


provide the province a more IT literate population, which will hopefully provide a greater impetus

to development in coming days.

b) Introducing Remote Area Allowance for Teachers

GoB would introduce remote/ difficult area allowance to incentivize availability of teachers and

other staff in all parts of the province.

Table 5A School Education (Rs. in millions)

Sr.

No

Strategy FY1,

FY2

FY3,

FY4

FY5, FY6,

FY7

Total Proposed

FA Portion

1 Access & Equity 9,163 15,010 14,232 38,405 19,202

2 Early Child Education 308 2,702 2,596 5,606 4,485

3 Inclusive Education 30 84 75 189 151

4 Quality Education 1,765 1,150 656 3,572 2,857

5 Textbooks development &Publication 615 678 1,150 2,443 1,954

6 Teacher Development 103 113 192 407 326

7 Governance & Management 76 36 58 170 136

8 Creation of Head Teacher Cadre and

Recruiting 3000 Head Teachers 1,367 1,507 2,556 5,430 4,344

9 Enhance School Non salary Budgets 1,107 1,220 2,069 4,397 3,737

10 Student Assessment System 410 452 766 1,628 1,352

11 Partner with Private Sector EMPs

(50,000 children) 1,845 2,034 3,449 7,328 4,397

12 Add 200,000 children through BEF 2,952 3,255 5,518 11,724 9,380

13 Literacy and NFE 236 724 674 1,634 1,308

14 Out Sourcing IT in High & Middle

Schools(150,000 children) 308 339 575 1,221 -

15 Remote/Difficult Area allowance 554 610 1,035 2,198 -

16 Monitoring, Evaluation 105 118 203 426 342

17 Throw forward of existing schemes 1,891 - - 1,891 -

Total 22,835 30,032 35,804 88,669 53,971


5.2 Technical Training, College & Tertiary Education

5.2.1 The Higher Education Department of the province manages 35 degree and 62 intermediate colleges

having an approximate enrolment of 50,000 students. The overall budget on the college side is Rs. 2

billion for 2012-13. Despite this outlay and investments of sizeable amount in the capital

expenditure, the state of college education remains weak in terms of quality. The enrolment level

may be around 50,000 but the average attendance levels and overall quality of teaching remains

low, this in turn has serious ramifications on the state of productivity in the province.

5.2.2 The bachelor’s programs in these colleges still follow the two year curricular stream despite the

development of 4 year programs by HEC. Secondly most of the Degree colleges extend the general

Arts subjects which carry very little market value. It is therefore time to gradually consider

restructuring these colleges towards fields which will carry greater chances of employment such as

Business; Management; ICT; Engineering; Architecture; Communication & Media Sciences and so

on. Such restructuring is now becoming quite necessary as the province requires greater number of

manpower in specialized fields in addition to general Arts graduates.


5.2.3 These institutions also suffer from financial and organizational constraints. The overall culture in

these organizations does not encourage quality learning and teaching environment. There is little

use of ICT, the teaching and examinations fail to invoke conceptual understanding of the subject

matter. Issues of governance include low non salary budgets leading to few quality inputs; weak

quality of faculty, teacher absenteeism, low attendances and lukewarm academic environments.

5.2.4 The Technical Education & Training side presents additional challenges. Firstly institutionally the

subject is distributed amongst 4 provincial departments including Education, Labour, Industries &

Social Welfare Department. There has been an on-going struggle to create a single organization that

can oversee the entire realm of technical and vocational training in an integrated manner on the

pattern of other provinces and Federal Government. Earlier an attempt was made to establish

Balochistan Technical Education & Vocational Training Authority (BTEVTA) however it could not

materialize.

5.2.5 GoB is presently spending approximately Rs. 867 million (Revised Estimate for 2011-12) on 102

technical and vocational training institutes across the province, having an enrolment of

approximately only 3900. The general perception is that very few trained candidates are able to link

up with relevant job market. The overall technology and quality of teaching is outdated requiring

strong re -structuring of these institutions. It would be a very worthwhile exercise to explore

possibilities of partnerships with oil & gas and other companies under a framework, where

government finances the cost of training but these organizations manage these institutions under

long term performance based contracts. This will help in introduction of current technologies and

better linkage with market. Similarly GoB plans to seek technical assistance of international donors

for supporting re-structuring of technical training institutions for making them more effective.

5.2.6 There are presently 7 universities in the province with 5 of these located in Quetta and two

universities namely the Lasbela University of Agriculture, Water & Marine Sciences is located at

Uthal and the Balochistan University of Engineering & Technology is at Khuzdar. Six of these

universities are in public sector and only one i.e. Iqra University is private. There is a serious issue

of access in terms of a vast geographic area having almost all intuitions of higher education located

in Quetta except for two and secondly the overall capacity will also require to be expanded in the

next 7 year strategy for creating greater opportunities of higher education in the province.

5.2.7 Higher education in the province also suffers from quality issues. At the university level there has

been some progress on HEC led program developments including improved qualifications of the

faculty and better quality research however the overall quality of teaching and student development

requires additional efforts.

Priority Areas

5.2.8 Access to college education is low and overall standards of college education require improvement.

These twin issues can be addressed by initially restructuring a few select degree colleges towards

market oriented disciplines for eliciting greater interest

5.2.9 Simultaneously the colleges’ governance structure needs to be overhauled for bringing in greater

accountability in terms of student performances. This requires strengthening of the monitoring

framework as well as Intermediate Board of Examination.

5.2.10Technical education requires a major re-structuring for revamping the existing technologies and

standards of training in collaboration with private sector


5.2.11The access to universities requires to be improved by encouraging greater number of campuses in

certain regions having no access to university education and simultaneously increasing linkages

with federal and other private universities for sending greater number of students in other provinces

and to Federal Institutions through provincial scholarships.

Strategy

i. Improve the overall performance of the public sector colleges by installing a scientific monitoring

framework which can provide on line information about teacher and student attendances; progress

on syllabus coverage.

ii. Introduce market oriented faculties such as: Art & Design, Business Administration, IT, Media

Sciences, etc. in 10 existing Degree colleges by bringing in faculty on competitive basis.

iii. Undertake performance based long-term management contracts with private sector for managing

the new colleges under construction for establishing specialized institutes for Business

Administration, Engineering, Architecture, Mining & Petroleum etc. in different regions of the

province.

iv. Beef up the non-salary budgets of the colleges after evaluating realistic requirements and these

may be linked to student performances.

v. Strengthen the Intermediate Examination Board through better manpower and systems for

making examination system more credible.

vi. Develop partnerships with Oil & Gas and other companies for private sector management of a

few selected technical/ vocational institutions especially for fields relevant to the provincial

resource base such as mining, petroleum, mechanical, civil, etc.

vii. Restructure the existing technical intuitions through a technical Assistance package for upgrading

technologies and improving faculty capacities and organizational strengthening. Also under this,

rationalize the organizational structure by creating BTEVTA under technical assistance of the

international donors to be able to bring in the required systems.

viii. Introduce remote and difficult area allowance for incentivizing the postings in these areas.

ix. Existing Universities may be encouraged to open campuses in one or two other regions to cover

the higher education gaps across the province. In Phase 1; the IT University in Quetta and the

Engineering University of Khuzdar can be provided with adequate resources to establish

university campuses in two regions of Balochistan; which do not have any higher education

facility. GoB can also consider negotiating with the Federal Government for locating few

campuses of Federal Universities in Balochistan. For instance ‘Comsat’, operates 7 campuses

in Punjab and KPK and can be requested to set up one campus in Balochistan.

x. GoB to set-up a very lean Higher Education Commission to oversee the standards of teaching in

colleges and universities and recommend additional grants for these institutions to the provincial

government linked to need and performance. A regular system of grants needs to be initiated for

the universities in Balochistan to meet a part of their fiscal deficits. These grants may be


disbursed through Balochistan HEC on the basis of an agreed criteria as well as performance

benchmarks.

Table 5B; Higher Education & Technical Training (Rs. In million)

Sr.

No Strategy

FY1,

FY2

FY3,

FY4

FY5, FY6,

FY7 Total

Proposed FA

Portion

1 Establish New Faculty (10 Degree

Colleges)

1,496 444 752 2,692 -

2 Operate New Colleges under PPPs

(MBA, BSC; Design, Mining,

Petroleum)

166 134 225 525 -

3 Campuses of IT & Engineering

University in two other districts

160 37 62 259 -

4 Increase Non salary Budgets colleges 371 417 723 1,511 -

5 Strengthening Balochistan Board of

Intermediate

53 50 79 182 136

6 Managing Technical/Vocational

Institutions under PPPs

630 762 1,454 2,846 2,135

7 Establish BTEVTA and restructuring

of Technical/ Vocational Training

630 762 1,454 2,846 2,135

8 Remote/ Difficult Area Allowance 494 556 965 2,015 -

9 Higher Education Commission 24 20 34 77 -

10 Grants for Universities 1,236 1,389 2,412 5,036 -

11 Throw Forward of Existing Schemes 730 800 - 1,530 -

Total 5,990 5,371 8,160 19,519 4,406


5.3 Health Sector

5.3.1 Balochistan’s health sector indicators are very

poor and the progress attained in last decade is

painfully slow as well as low. This is despite

greater awareness and support from multiple

agencies including international donor

agencies in the health sector especially in the

public health component where apparently

very little has changed for last many years.

The very obvious factors are that other than

the low economic activity and poverty, the

GoB too has remained fiscally strained for last

many decades. This is however a more opportune time to reassess the existing public sector health

portfolio and unfold a more sensitive and intelligent strategy to attend to the priorities under health.

Priority Areas:

Primary Health Care; Mother& Child Health


5.3.2The biggest challenge faced by Balochistan in the heath sector is that of primary and preventive

health care especially in the context of mother and child. The terrain and distances in Balochistan

comes out as a major limiting factor where the reach out of basic health services remains restricted

to certain pockets within each district. Coverage of maternal, child health services including

antenatal, neonatal, contraception, vaccination is considerably weak across the province. Only 26%

of deliveries take place in health facilities, which is at least 10% lower than other provinces. In rural

areas over 80% deliveries take place at home and of these a significant proportion is assisted by

untrained attendants (Table 5.4).

Table 5.4: Child Delivery and Type of Assistance

Place of Delivery Punjab Sindh KPK Balochistan

U R T U R T U R T U R T

Home 37 66 57 24 73 52 43 66 62 42 84 74

Public Health facility 20 8 12 18 8 12 28 14 16 17 8 10

Private Health Facility 43 26 31 57 19 35 29 19 21 40 8 16

Other 0 1 0 1 0 1 0 0 0 0 0 0

Total 100 101 100 100 100 100 100 100 100 100 100 100

Person That Assisted

Doctor 49 26 33 64 25 42 53 29 33 40 10 17

Trained Attendant 44 64 58 31 55 44 21 59 57 57 49 48

Family member/other 2 6 5 3 18 12 20 37 34 13 35 30

Other 4 4 4 1 2 1 7 10 9 2 6 5

Total 99 100 100 99 100 99 101 135 133 112 100 100

Source : PSLM 2010-11 (U: Urban; R: Rural; T: Total)

5.3.3 The other components of MNCH including pre natal and antenatal care are also quite dismal. Urban

areas in Balochistan show only 55% of pre-natal consultation of any type and the rural areas the

coverage dips further to 41%. Similarly the antenatal care is equally bad with over 31% of pregnant

women in the province who have received Tetanus Toxoid (TTX) injection which results in higher

levels of child mortality (Fig 5.1). As per PDHS 2006-07 the maternal mortality ratio (MMR)

measured for Balochistan was the highest among the four provinces at 785 maternal deaths per

100,000 births compared to 227,314 and 275 per 100,000 births for Punjab, Sindh and KPK

respectively. The MDG goal for MMR is 140 per 100,000 live births and the country is nowhere

near the target.


0

20

40

60

80

100

Punjab Sindh KhyberPakhtunkhwa

Balochistan

86 84 74

41

74

42

58

28

77

60 61

31

Urban Rural Total

Fig 5.1 : % of Pregnant Women that have Received TTX Injection


5.3.4 The Infant Mortality Ratio (IMR) and U5MR are also considerably higher than other provinces.

The Balochistan MICS 2010 has assessed these to be 72 and 89 per 1000 live births against the

MDG targets of 40 and 52 per 1,000 live births.


0

20

40

60

80

100

Punjab Sindh KPK Balochistan

87

70 77

45

85

64

77

45

86

67 77

45

MaleFemaleTotal

Fig 5.2:Percentage of Children (12-23 months) Immunized (based on Recall & Record)


5.3.5 Under child immunization the provinces’ comparative data in PSLM 2010-11 shows an overall

coverage of 45% for Balochistan compared to 86% in Punjab, 67% in Sindh and 77% in KPK (Fig

5.2). The detail of each category reflects a more dismal situation. As per MICS 2010, only 35%

children (12-23 months) received BCG at birth before their first birthday. Polio-1 was administered

to 61% children at any time before the survey which dipped to 46% for Polio 3. DPT-1 was given

to 24% and it dropped to 12% for

DPT-3. Hepb3 was reported for less

than 7% children. 23% children

received measles vaccination at any

time before the MICS survey. This

situation can lead to serious

consequences if not contained through

urgent measures. The recent outbreak

of measles in Sindh reportedly led to

over 400 deaths across Sindh by

January 2013. Hence, given the

generally poor functionality of the

public sector facilities, it is important

that a dedicated attention is paid to

contain outbreaks of communicable

diseases across Balochistan.

5.3.6 Polio remains an area of concern. As

per Report of the Independent

Monitoring Board of the Global Polio

Eradication Initiative February 2012,

greatest number of cases relate to

Pakistan where it further increased by

38%. The majority of the cases occur

in three main areas: Balochistan

(Killa Abdullah, Pishin and Quetta districts); Sindh (Karachi and northern Sindh; and parts of

FATA and KPK.8In Balochistan the number of cases increased from 12 in 2010 to 73 in 2011 and

the affected districts increased from 6 to 14. What is disturbing is that the polio immunization

coverage slipped to 46% by polio-3. Weaknesses in polio coverage need to be scientifically tackled

by integrating the immunization with PHC cover. It also involves community based education and

tight governance of entire immunization together with polio.

5.3.7 The PHC coverage in the province has improved significantly after the PPHI which is presently

managing over 567 HFs (563 BHUs; 3 CDs & 1 RHC) across the province. Not only has the

PPHI in Balochistan made significant progress in rehabilitating the run down infrastructure;

equipping it with required equipment; medicines but the overall presence of health staff including

doctors has also visibly improved. Over 143 non-functional BHUs have been made functional in

a short span of 4 to 5 years (Table 5.5).

8The Global Polio Eradication Initiative; www.polioeradication.org/Infectedcountries/Pakistan.aspx

Table: 5.5: PPHI’s Achievements on Infrastructure

Sr

No Facility

Before

PPHI

After

PPHI Total

1 Laboratories 9 133 142

2 Incinerators 0 48 48

3 labour Rooms 0 48 40

24/7 labour Rooms 0 30 30

MCH Plus 0 11 11

4 Ultrasound Machines 0 19 19

5 Generators 0 46 46

6 Desert Coolers 0 63 63

7 Cold Chain Points 148 182 330

8 Water 74 249 323

9 Gas 35 23 58

10 Electricity 188 179 367

solar Energy 0 10 10

11 Telephone 3 325 328

12 Ambulances 17 24 41

13 Furniture/Fixtures - 548 548

14 Made Functional from

Non Functional

- 143 143

15 Repair & Renovation - 478 478

Source: PPHI, GoB Brief


Burden of Disease

5.3.8 In Balochistan TB and hepatitis are major contributors to communicable disease burden. While

communicable diseases still account for dominant share of morbidity and mortality in the province

however prevalence of non-communicable diseases (NCDs) is rising rapidly. However there are no

clear study sources for monitoring the incidence of NCDs. Case load of TB in Balochistan as in the

national level is mainly amongst the poor. Case detection rates vary across districts and these are

extremely low in Dera Bugti, Kalat, Kech, Musakhel, Sibi. The treatment success rates also vary

across districts. Hepatitis B and C levels are also major concerns however unsafe practices of

injection usage and needle disposal are widely prevalent and vaccination levels are low at less than

7%. HIV control needs a special focus in urban Balochistan

Nutrition

5.3.9 As per the National Nutrition Survey 2011; after Sindh, Balochistan was found to be affected more

by food insecurity. It was assessed that about 63.5% people were food insecure and of those that

were found to be food insecure, about 33.9% were food insecure without hunger, 18% were food

insecure with moderate hunger and 11.5% were food insecure with severe hunger. About 32.2%

children suffered from severe stunting. Also Balochistan had highest rate of underweight children

41.8% followed by Sindh 39.8%. Given the severity of the problem there is an urgent need to

evolve nutrition interventions in coordination with other departments especially the Agriculture

department as part of a larger inter-sectorial strategy.

Essential Medicine

5.3.10 Essential Medicine availability is poor in public sector and compounded by irrational use and

suspect quality across the sector: Balochistan alike other provinces lacks a pharmacy strategy and

this sub-sector has traditionally been over-looked in planning for health systems. There has been

proliferation of shadow pharmacies, inappropriate prescriptions of medical practitioners and low

use of recommended generics. There are also supply management issues such as low quality

parameters in purchasing, and lack of transparent checks in management of inventory. Health

financing measures are also needed to reduce the high OOP expenditure on drugs. Above all there

is absence of a central body to act as the hub of pharmacy functions for taking this forward.

Governance

5.3.11 Government recognizes that the issues of governance of health require attention. There is over

centralization of authority; weak oversight of service and absence of a clear monitoring and

evaluation framework. Further there is need to strengthen the tenures of top management as

frequent transfers of both senior and mid-level management impact governance adversely.

In terms of human resource deployment; there is presently no strategy for staff production,

postings and training. The ratio of doctors to nurses is inverse with there being 3 doctors to a

nurse. There is shortage of all categories of female staff and specialists in rural districts

primarily due to patronage- based transfer postings. Also administrative posts at both district

and provincial levels also lack mandatory management qualifications.

Balochistan has considerably low presence of private sector but it is gradually increasing and

requires regulatory framework. Reportedly there is wide practice of quackery, shadow

pharmacies and sub-standard diagnostics used especially by the poor. There is need to


encourage greater presence of private sector for Blood Transfusion and Diagnostic services and

to regulate the existing service providers by setting up of a Regulatory Authority.

Low Public Sector Spending

5.3.12 Given comparatively low presence of private sector in Balochistan with the exception of Quetta,

the bulk of population relies on public health facilities. The provincial health spending has

remained static at around 6% of total provincial expenditure for last many years (Table 5.6). Even

after better fiscal space in the post NFC years, the situation fluctuated slightly. The total health

expenditure increased at an average annual growth rate of 29%, from 2006/07 to 2011/12. Other

features are: i) salary budgets constitute 75% of total spending reflecting insufficient non -salary

budgets; ii) allocation for development expenditure is heavily tilted towards facility construction;

iii) primary health care provides the most cost efficient means for disease control, however it does

not get sufficient funding; iv) proliferation of parallel vertical programs, duplication of many

activities (which if integrated can lead to cost effectiveness) all lead to inefficient spending of

scarce resources.

Table 5.6: Health Expenditure 2006-07 to 2011-12 (Rs. In million)

2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 Growth 5 yrs

Grand Total

Expenditure 48,395 55,486 63,239 68,731 128,855 144,473 24%

Prov. Recurrent Exp 27,642 31,963 39,971 44,466 92,602 101,778 30%

Prov. Dev.

Expenditure 20,753 23,522 23,267 24,265 36,253 42,695 16%

Total Health

Expenditure 2,714 3,118 4,071 4,759 6,740 9,548 29%

Health Recurrent Exp 2,485 2,896 3,564 4,108 5,743 7,603 25%

Health Dev. Exp 229 222 507 651 997 1,946 53%

Health percentage of

Total Exp 6% 6% 6% 7% 5% 7%

Source: Provincial Accounts(Note: calculation differences may arise, purely as a result of rounding off)

Strategy

Strengthening Primary Health Care (PHC)

GoB acknowledges that without strengthening the outreach as well as quality of PHC services including

the immunization and MNCH it cannot move out of the low health indicators. This is a core priority and

the simplest way to reach the objectives is to build on existing success stories. By now, PPHI in

Balochistan has exhibited a reasonably robust presence and has undertaken the first steps by rehabilitating

the BHUs and providing better health services through availability of medical staff and medicines.

Despite fragile security situation PPHI has been operating in almost all regions of the province exhibiting

resilience within a difficult terrain and environment

i. Integrate the Civil Dispensaries (555 in number); EPI and LHVs with the PPHI by transferring the

administration and budgets of these entities to it. PPHI to be tasked to upgrade the CDs to BHU

levels, by providing them required grants for additional infrastructure and manpower. PPHI to

manage immunization through scientific database.


ii. PPHI to upgrade a minimum of one third of the BHUs to BHUs- plus model for delivery of services

on 24/7 basis in all the districts. It may be required to create one secondary level health facility in

every tehsil with a proper referral linkage with BHUs. This can be done by transferring one RHC in

each tehsil to PPHI for converting to secondary level hospital and having 24/7 MNCH and other

services.

iii. There are 22 on-going schemes relating to primary health (New BHUs, CDs, RHUs, and

rehabilitation of different HFs etc.). These require Rs. 193 million for completion; these together

with new schemes will be given full capital and operational funds for early operationalization.

iv. Strengthen PPHI’s legal and institutional framework by converting it into a section 42 company and

providing it with an Endowment for making it an autonomous organization to work as a strong

partner organization in health service delivery with built in accountability mechanisms

v. Establishing links between TB, Malaria and Hepatitis for integrated and evidence based control at

community levels. This requires strengthening of TB Program; Malaria Program to be made results

based. Further, the Chief Minister’s Initiative for Hepatitis Free Balochistan requires review for

expanding it with a focus on preventive vaccination beginning from school children; new born;

expectant mothers and population within highly infected regions.

Addressing Challenges of Health Sector Governance & Accountability

vi. Health Department to reorient its role from HR management to Health policy, financing, oversight

and regulation body. For this, HR management will be decentralized to Health Facility level

especially for tertiary care hospitals and by gradually rationalizing the availability of manpower.

There is chronic shortage of specialist doctors, nurses and paramedics in the DHQs; RHCs across

the province other than Quetta. GoB to create Facility Specific Non Transferable Vacancies for

Specialists for these Hospitals and will enforce a professional deployment policy.

vii. Strengthen the Health Management Information System (HMIS) by improving the human

resources; other resources and creating linkages with the District Management Information System

(DMIS). .

viii. Evolve a Minimum Health Service Delivery Package (MSDP) & Standards in Public Sector

Facilities and move towards Result Based Implementation.

ix. Create trained Administrative Cadre to improve efficiency of Health Administration at all levels.

The current trend of posting doctors as Medical Superintendents and against other administrative

positions is to be phased out by bringing in Health Management Cadre.

x. GoB plans to undertake a few, “Hospital Autonomy Pilots for major Tertiary/ Specialist Hospitals”;

by creating autonomous boards in partnership with philanthropists; not for profit organization and

even with for profit private sector. This is with an objective to upscale and improve the services of

tertiary care hospitals.

xi. Under on-going portfolio, 10 new hospitals (50 bedded in Kech, Killa Abdullah, Kachlak (Quetta),

Ghousabad (Quetta), Kalat, Punjgur, Pasni, Nushki, Kachi) are being constructed. In addition it

includes 100 bedded hospital in Quetta, a cancer hospital at Quetta, 100 bedded Mental Hospital at

Quetta and Women's hospital in Zhob. All these will require a huge amount on operational side and

undertaking recruitments through existing policies will once again lead to centralized management


and possibilities of deployment in bigger urban centers mostly Quetta. A few of these to be

operated under PPP mode by soliciting interest of private sector/ not for profit organizations/

expatriate residents of Balochistan who may be interested in operating these on professional basis.

xii. Explore possibilities of PPPs in different components of health sector especially in such areas as

medical education, specialized curative care, diagnostic services and blood banks. Contracting of

such services as hospital kitchens, janitorial services, security services, hospital laboratories,

Ambulance services, etc.

xiii. Undertake a high quality training program for developing nurses and paramedic staff by bringing in

a performance based management contract for one of the nursing training facility on the basis of per

trainee costs.

xiv. GoB plans to evolve a Nutrition Program through dedicated packages and inter- sectorial linkages

especially in collaboration with Agriculture department. Nutritional services to be integrated with

PHC and will require availability of nutrition supplements; building capacity of service providers

in assessment and management of malnutrition

xv. Attending to gaps in the availability of emergency services

xvi. Provide laboratory services for diagnosis of major infectious diseases including TB, Hepatitis B

&C, HIV/AIDs , malaria at all RHCs and tertiary hospitals

xvii. Establish blood banks in secondary level health care facilities and ensure safe blood transfusion in

all existing public and private blood banks

xviii. Strengthening availability of Drugs and Diagnostic Services through public support. There is need

to update Essential Drug List to examine the storage availability at tertiary hospital level.

xix. As part of this strategy GoB plans to re-assess the budgets for drugs; medical supplies including X-

Rays; diet; laboratory equipment and supplies and improve the non- salary budgets to ensure that

essential requirements are adequately supplied in efficient manner.

xx. Introduce remote / difficult area allowance for incentivizing postings in these regions,

xxi. Population Welfare activities need to strengthened through coordinative efforts at BHU and RHC

level and integrating these with MNCH coverage

Table 5C; Health & Population Welfare (Rs. In million)

Sr.

No

Strategy FY1,

FY2

FY3,

FY4

FY5, FY6,

FY7

Total Proposed

FA Portion

1 Integrate CDs & EPI with PPHI,

convert CDs into BHUs 5,102 2,305 3,907 11,314 6,788

2 Upgrade 300 BHUs into BHU Plus 1,435 1,068 1,811 4,314 2,588

3 PPHI Endowment 700 800 1,200 2,700 -

4 Hospital Autonomy Pilots 500 600 900 2,000 -

5 Operationalize 5 New Hospitals

through partnerships 400 600 900 1,900 -

6 Strengthen HMIS; Develop

MSDPs 185 223 426 834 626


Sr.

No

Strategy FY1,

FY2

FY3,

FY4

FY5, FY6,

FY7

Total Proposed

FA Portion

7 Additional Doctors, Staff, Non

salary Budgets 363 739 1,252 2,354 -

8 Integrated Nutrition Program 350 380 570 1,300 975

9 Emergency Services by creating a

dedicated facility in Quetta 111 41 69 221 166

10 Strengthen diagnostic laboratories 239 202 342 783 587

11 Create Blood Banks under PPP 201 85 144 430 322

12 Medical College under PPP 1,187 645 445 2,278 -

13 Management Contract for Nursing

& Paramedic Training Institute 366 360 542 1,267 951

14 Convert Health Foundation into

Health Regulatory Authority 133 155 276 564 423

15 Remote /difficult Area allowance 989 1,048 1,111 3,148 -

16 Lump Sum for Population welfare 500 1,500 3,000 5,000 -

17 Throw Forward of Existing

Schemes 500 1,000 1,479 2,979 -

Total 13,261 11,751 18,374 43,386 13,426


5.4 Religious Affairs

5.4.1 GoB reorganized the Hajj and Auqaf department in 2010 as Religious and Minorities’ Affairs

department. The department was re named as Religious and Inter-Faith Harmony department in

June 2011 with the mandate to handle matters relating to Zakat, Ushr, Hajj and Minorities Affairs.

The Zakat and Ushr have been devolved to the provincial governments subsequent to the

promulgation of the 18th Amendment. Given the wider role of the department in coming days it will

be important to strengthen the institutional framework for gearing it up for the expanded

responsibilities.

Strategy

5.4.2 Presently the department has very few resources both in terms of manpower as well as budgets. A

few important steps required for strengthening the institutional framework would involve:

i. Strengthen the Zakat disbursement mechanism through greater use of ICT; by computerizing

the data; on line disbursements through mobiles etc. Making the beneficiary identification

more transparent by cross checking with BISP data and updating regularly

ii. Greater reliance on Rehabilitation grants and facilitating sustainable incomes through

trainings and micro enterprise development

iii. Undertaking robust Madressah reforms by introducing compulsory teaching of important

subjects like math, science etc.

iv. Grants for rehabilitation of Mosques


5.5 Culture, Tourism & Archaeology

5.5.1 The Culture, Tourism & Archives department handles the subjects of culture, tourism and archives

through dedicated Directorates. The department is involved with different activities to promote the

rich culture and heritage of the province including arts, crafts, folklore and music. The Archaeology

Directorate’s mandate is protection and conservation of the built heritage in the province including

historical monuments for preserving and promoting the heritage.

5.5.2 On the Tourism side there are significant number of initiatives which have been undertaken to create some

basic infrastructure for promoting tourism in Balochistan, such as rest houses, tourist spots etc. Subsequent

to the 18th Amendment there are multiple issues which are pending at the level of the federal government

such as transfer of the PTDC motels, Tourist Information centers in different cities such as Ziarat, Chaman

etc. In post devolution scenario the role and responsibilities of the department have increased and it

requires considerable administrative and financial support to be able to contribute towards public support

for culture and tourism.

Strategy

i. Promotion of culture, arts, crafts and folk lore is planned to be under taken with renewed vigour.

This is being seen as necessary for overcoming the general despondency in the province and

highlighting the rich history and traditions of the province. For this, special efforts would be put

in to organize cultural activities; events through public sector support as well as by mobilizing the

non-governmental organizations, educational institutions etc.

ii. Create a dedicated fund for supporting artists including musicians, actors and singers.

iii. Given the tremendous opportunities for Tourism in the province, the department in collaboration

with the Coastal Development Authority, explore the possibilities of engaging with the private

tour companies for developing tour programs for different sites on the coast including cruise tours

for Gwadar and Somiani beaches. Simultaneously, it requires incentivizing the local population to

create a few affordable motels and restaurants aesthetically, development of tour guides,

Table 5D: Religious Affairs (Rs. in million)

Sr.

No

Strategy FY1,

FY2

FY3,

FY4

FY5,

FY6, FY7

Total Proposed FA

Portion

1 Endowment Fund for

Rehabilitation of Mosques 100 100 100 300 -

2 Grants for Madressah Reforms

100 200 300 600 -

3 Strengthening Zakat Institutions

and ICT for Zakat Disbursements 100 200 300 600 -

4 Grants for Minorities (religious

places, festivals, stipends) 100 200 200 500

-

Total 400 700 900 2,000

-


websites, etc. Similar efforts will be undertaken for promoting tourist visits in all the regions,

gradually including Quetta, Pishin, Killa Abdullah, Loralai, Kalat etc.

iv. Strengthen the Archaeology section by identifying historical monuments which require

conservation and gradually building up the technical skills for conservation.

Table 5E: Culture, Tourism (Rs. in million)

Sr.

No

Strategy FY1,

FY2

FY3,

FY4

FY5,

Fy6, Fy7

Total Proposed

FA Portion

1 Promotion of Cultural Activities 100 100 200 400 -

2 Tourism Promotion through partnership

with private sector 200 200 300 700

-

3 Rehabilitation & Conservation of

Historical Monuments 200 200 300 700 -

4 Throw forward of Existing Schemes

38 - - 38 -

Total 538 500 800 1,838 -

5.6. Social Welfare, Sports & Youth Affairs

5.6.1 GoB accords importance to social welfare for reaching out to the marginalized and weaker sections

of the society. It plans to support and expand the existing interventions especially in the context of

containing the increasing drug menace. Simultaneously it aims to support the nurturing and

development of youth by engaging them in meaningful activities. Given the huge youth bulge and

possibilities of the role that youth can play in containing conflict and promoting peace in the

province, the Government plans to encourage their involvement in multidimensional activities.

5.6.2 In terms of evolving strategy for containing the rising drug menace, an important element is

containing the drug addiction amongst the youth; which is believed to be on the rise. The drugs,

mostly cocaine, heroin (from poppy), hashish and opium, come from Afghanistan through the

long and porous border, but it is also believed that these may come through regular entry points

with possible collusion between the smugglers and the border security. Drug smuggling is

apparently strongly linked with both human trafficking and arms trafficking. The Ministry of

Narcotics together with the Anti-narcotics Force and UNODC - and supported through USAID is

responsible for dealing with drug problem.

5.6.3 Border communities and major settlements like Quetta are the most affected. A drug addict in a

family affects not only the family, but the neighborhood and the whole community. There is very

strong social stigma associated with drug addiction - with addicts often treated undesirable outcasts.

Officials in Balochistan consider the drug menace as both a social and humanitarian crisis that

deserves urgent attention. But it is also a security and a potential trigger of violent conflict in the

border areas and in built areas such as Quetta.

5.6.4 There is only one facility to for drug rehabilitation in Balochistan. The new sprawling 8 acre

complex - The Detoxification and Rehabilitation Complex for Drug Addicts, Eastern Bypass,

Quetta" - caters for a possible 250 patients at a time, but because of shortage of funding, it presently

offers only 60 beds. This is but a tiny drop in the ocean of abject poverty and misery. To make

matters worse, the centre has no facilities for women patients. The centre also provides counseling


services to those addicts who opt out of rehabilitation. In addition, it runs schools awareness

programs. Whereas post-rehabilitation relapse rates are normally quite high (as much as 95%) in

similar situations, the centre claims a success rate of 33% fully rehabilitated patients, but there is no

third party validation of this figure.

Strategy

i. Establish a “Youth Dialogue Forum” where youth can discuss challenges affecting and

opportunities available to the youth. The youth would, through this mechanism, collectively

develop strategies and programs that feed into district and/or provincial processes.

ii. Establish school social cohesion/bridge-building clubs to promote a culture of dialogue. Organize

study tours for women leaders and youth leaders (jointly or separately) to engage with and share

development and education approaches in other provinces.

iii. Undertake a systemic program for rehabilitation of playgrounds; stadiums and other places of

sports. Create a mechanism for registering Youth Organizations for supporting and sponsoring

sports events through local community networks and greater documentation.

iv. Registering and supporting the Youth Organizations for other activities like exchange programs;

leadership trainings; facilitating their participation in debates; dramas; international conferences

v. A study to determine the extent of the drug problem, including approximate quantities of drugs

crossing into Balochistan, the trafficking and gender disaggregated data on usage of the drugs

within Balochistan, usage in schools and colleges, etc. Undertake a needs analysis of The

Detoxification and Rehabilitation Complex for Drug Addicts, Eastern Bypass, Quetta with a view

to supporting the rehabilitation program including establishment of a women's facility at the

centre. Support the schools awareness program in the most affected areas of Balochistan.

Table 5F: Social Welfare , Sports & Youth (Rs. in million)

Sr.

No

Strategy FY1,

FY2

FY3,

FY4

FY5,

FY6, FY7

Total Proposed FA

Portion

1 Rehabilitation of Existing Stadiums,

Playgrounds; Gymnasiums etc. 200 300 500 1,000

-

2 Endowment Fund for Supporting various

Social welfare Activities 100 400 500 1,000

-

3 Institutional Development of the Dept. for

Support to Youth Organizations 30 30 40 100

-

4 Throw Forward of Existing Schemes

95 - - 95 -

Total 425 730 1,040 2,195

-


06 Infrastructure


6: Infrastructure

Development and maintenance of essential physical infrastructure is an important ingredient for sustained

economic growth. Poor infrastructure is perhaps the most binding constraint to growth especially for

regions like Balochistan where distances have largely determined the history of its development. The

Government of Balochistan has been historically assigning high priority to infrastructure building. There

is however, a growing clarity that given the specific context of Balochistan, a strategy is required for

developing the infrastructure in a more planned manner. This section puts across GoB’s strategy on

physical infrastructure with focus on the road network, water, water supply & waste water, housing and

energy.

6.1 Roads & Transport

6.1.1 One of the most forbidding constraints faced by Balochistan is the remoteness, both within the

province as well as with bordering provinces and countries. The connectivity in Balochistan

determines its productivity; linkages with markets; availability of labour, finance, and transactions

as well as the service delivery, all of which are preponderantly dependent on the transport. An

efficient transport infrastructure is believed to not only enhance productivity but it will also

enhance the rate of return on formation of both physical and human capital (World Bank 1994).

Balochistan thus requires high levels of effective investments in the transport sector. Such

investments can only be made possible through intelligent fiscal management including well

planned borrowings from multiple sources including international donors.

6.1.2 Regions like Balochistan are considered to be

best served by rail transportation, which can

provide comparatively cheaper connectivity,

however in the case of Balochistan, railway

connectivity is only in the north of Balochistan

and the rest of the province unfortunately does

not have the network. Developing a robust

railway network in the province can be a

strategic intervention for the long-term

development of the province. This particular

investment hinges on the development of

Gwadar port as a transit trade route to generate

the type of transit freight traffic that can make

this investment commercially viable.

6.1.3 In the current scenario 90% of Balochistan’s passenger traffic and 95% of freight traffic uses the

road network including the national highways and the provincial roads. Balochistan’s roadwork was

about 33,588 km in length by 2012 and of this more than 60% (20,221 km) were shingle (unpaved)

roads.9 The overall road density of the province is 0.09 road length per square km which is much

lower than other provinces and works out to be almost half of the national average. Other than this

low density, there is a huge backlog of road maintenance and roughly 70% to 90% of the networks

are in a state of disrepair.10

Transport cost increases as road surface quality deteriorates. The

9Communications & Works Department, GoB

10Pakistan’s Balochistan Economic Report. 2008. World Bank, Asian Development Bank and Government of Balochistan.

Report No. 40335 Pk. Volumes I and II.


maintenance budgets have remained low and generally receive very little attention at every level in

the provincial policy making.

Table 6.1: Balochistan's Road Sector Allocations FY 2012-13

Estimated Costs (Rs. in

million)

Allocation 2012-23 (Rs.

in million)

Schemes GoB F.A Total Exp June

2012

GoB F.A Total Throw

Forward

C&W On-

going

171 31,352 921 32,274 17,296 2,718 175 2,893 12,084

New 149 8,315 8,315 6,569 6,569 1,746

BDA On-

going

105 42,229 42,229 12,554 2,471 2,471 27,204

New 5 172 172 102 102 70

Total 430 82,069 921 82,990 29,851 11,860 175 12,035 41,104

Source: GoB Budget 2012-13

6.1.4 The GoB recognizes the critical importance of this sector and has been allocating a large part of the

development funds to road sector investments. In FY 2012-13, Rs. 12 billion were budgeted

constituting 33% of the total provincial PSDP (Table 6.1). The challenge is to undertake the road

building through better planning. Presently there are over 430 schemes with a thin spread of

resources. The on-going portfolio of over 276 schemes with an estimated cost of over Rs. 74 billion

requires Rs. 44 billion for completion. However, funds received amount to Rs. 5.3 billion only,

which constitute 12% of the required funds. The new schemes (154) with a cost of Rs.8.4 billion,

received Rs. 6.6 billion constituting 79% of the total cost. This is likely to impact the investment

already incurred on the on-going schemes and may lead to construction inefficiencies and wastages.

Table: 6.2 Road Sector Schemes with NHA FY 2012-13 (Rs. In million)

Sr

no

Scheme Est.

Cost

FA Exp

June

Throw-

forward

Allocation 2012-13

FA Rupees Total

1 Widening & Improvement

of N-85, Hoshab-Nag-

Basima - Surab Road (459

Km) 22,412 - 6,164 16,248 - 1,100 1,100

2 Gwadar - Turbat - Hoshab

Section (200 Km) of

Gwadar - Ratodero Rd (650

Km) M-8 18,379 - 15,077 3,302 - 3,302 3,302

3 Makran Coastal Road (N-

10) Liari- Gwadar + Gwadar

-Gabd 16,072 - 15,572 500 - 175 175

4 NHDSIP: Killa Saifullah-

Zhob (N-50) - Killa

Saifullah & Zhob 9,777 7,528 4,287 5,490 2,000 500 2,500

5 Kalat-Quetta-Chaman N-25

(247 km) 9,327 4,017 7,827 1,500 - 1,200 1,200


6.1.5 Balochistan has the most extensive network of national highways with 8 national highways totaling

about 3,600 kms, which comprise approximately 37.7% of the total length of national highways

length in the country. In addition Balochistan has 962 kms of motorways, constituting 37% of the

total length of motorways in the country. NHA has made significant investments in Balochistan’s

road sector and at present it has 10 major schemes under implementation worth Rs. 90 billion with

a throw forward of Rs. 33 billion. Of this, Rs. 9.7 billion including Rs. 2 billion of foreign aid has

been allocated for FY 2012-13 leaving behind a requirement of Rs. 23 billion for completion of

these schemes in hand (Table 6.2).

Priority Areas

Table: 6.3 Road Sector Budget Allocations 2009-10 to 2012-13

Road Sector Allocations Total Provincial PSDP

Capital Foreign

Aid

Total Capital Foreign

Aid

Total % of PSDP

2009-10 7,004 300 7,304 13,474 1,649 15,124 48%

2010-11 8,302 1,368 9,669 22,053 4,276 26,329 37%

2011-12 9,342 328 9,670 29,127 2,225 31,352 31%

2012-13 11,860 175 12,035 33,105 2,972 36,077 33%

Source: GoB Budget Books(Note: slight calculation differences may arise, purely as a result of rounding off)

6.1.6 The provincial road portfolio has been receiving adequate funding in the provincial outlays. The

budget allocation increased from Rs. 5.4 billion in 2006 to over Rs. 12 billion in 2013 (Table 6.3).

These are original allocations and revised budgets are usually revised downwards however, the

sector has been receiving priority attention at the provincial level. Some of the areas that need

focused attention are discussed in the following paragraphs:

6.1.7 There is presently a throw forward of Rs.41 billion which is likely to require 3 years or so for

completion even if the current level of funding is increased. This implies that there will be little

space to undertake new schemes which may be economically more viable. Also, such thin spread of

Sr

no

Scheme Est.

Cost

FA Exp

June

Throw-

forward

Allocation 2012-13

FA Rupees Total

6 Khori -Quba Saeed Khan

(Khuzdar-Ratodero Rd

6,500 - 1,266 5,235 - 1,100 1,100

7 Improvement of Kararo-

Wad Section (96 km) N-25

3,373 2,231 3,348 25 - 25 25

8 Improvement of N - 65,

Nutal - Sibi –Dhadar (106

km) (QTA)

3,282 - 3,277 5 - 5 5

9 Rehab of Larkana-Rasheed

Wagon-Nasirabad Rd

1,215 - 584 630 - 250 250

10 Construction of Kolpur

Bypass N-65

639 - 523 117 - 117 117

Total Balochistan 90,976 13,776 57,925 33,052 2,000 7,774 9,774

Source: Planning & Development Department, GoB


funding invariably results in cost escalations and more importantly entails opportunity costs and

benefits which would have accrued in case of timely completion of the schemes.

6.1.8 Two-third of the road network in the province of about 20,221 kms is shingle roads. This is an

oversized portfolio requiring colossal amounts of investment, time and implementation capacity

and adequate maintenance subsequently. Also within the provincial roads, a portfolio of high

priority roads which connect the economic and administrative centers, markets and major

settlements needs to be adequately identified. These economic corridors will accordingly require a

prioritized attention and simultaneously the shingle roads need to be paved through well considered

prioritization.

6.1.9 The maintenance and repair of the entire road network continues to be neglected with adverse

consequences on the condition of the roads. This persistent and systematic neglect may ultimately

lead to the collapse of the road sector assets resulting in heavy stress on resources and as such

requires serious attention. The existing yardstick for maintenance is visibly below the benchmark

and requires revision after technical review. Simultaneously the overall management of the

maintenance portfolio needs to be made more scientific and transparent for exhibiting quantifiable

improvements.

6.1.10 Due to lack of availability of modern technology, GoB does not have updated information on the

status of roads especially the remote rural access roads and as to the number of settlements which

are not connected with travelable roads. This impacts the provincial government’s ability to

undertake rural roads development in a more organized manner. Lack of adequate road

infrastructure imposes economic and social burden on rural communities in multiple ways and

inhibits their ability to earn better livelihoods and restricts access to a range of public services

especially health, education etc. This component as such requires an organized response.

6.1.11 The overall ability to manage road sector and to undertake road infrastructure development through

different partnerships such as through BOT methods etc. requires technical capacities within the

department. In addition the department requires technological upgrades to be able to undertake

systematic planning through greater use of technology such as use of GPS and GIS etc.

6.1.12 Within the institutional and capacity strengthening component, the ability to develop a mechanism

for regular updating of schedule of rates on the basis of market; a more scientific monitoring of

road construction and quality parameters with improved contract administration are some aspects

that require strengthening.

Strategy

Give the size of road sector requirements, GoB acknowledges the need to look out for new ways and

means for building affordable and sustainable roads. This requires policy, institutional and planning

reforms, including the following:

i. Solicit Technical Assistance for supporting planning through modern technological & ICT tools;

improvements in procurement capability; ability to outsource various components relating to

engineering designs; traffic studies; maintenance surveys; environmental safeguards and quality

checks etc.

i. Develop an Asset Management Plan for provincial and rural roads for undertaking

institutionalized and planned rehabilitation.


ii. GoB to evolve legal and institutional framework for PPPs including developing the capacity to

undertake partnerships with the private sector for investment in the sector. This is likely to be a

slow process restricted to a small component relating to one or two viable corridors initially

however with improvement in the economy, the portfolio can be expanded for commercially

viable and partially viable road corridors.

iii. Develop a Road Sector Master Plan for;

a) High Priority Roads that provide connectivity to all the major economic and administrative

hubs;

b) Converting Shingle roads into paved roads in phases;

c) Priority Plan for Rural Access Roads.

iv. Engage with International Development Donors for a comprehensive investment program based

on the Roads Master Plan for economic corridors; existing shingle roads and prioritized rural

access roads. Under this;

a) Undertake construction of 2500 km of high profile economic corridors through donor

financing;

b) Undertake conversion of 3000 km of shingle roads/ rural access roads through donor

financing;

c) Undertake conversion of 5000 km of shingle roads into paved through provincial own

financing.

v. Undertake a planned maintenance of 5000 km of roads assets on the basis of Asset Management

Plan through own financing.

vi. GoB would engage with GoP and NHA for completing the existing portfolio on priority basis.

Emphasis may be laid on completion of N-85 corridor connecting Gwadar through Hoshab and

from Basima, Khuzdar to Ratedero. This was scheduled for completion in 2008. Being an

important economic corridor for connecting Gwadar to the National Trade Corridor, it requires

high priority financing. It has a throw forward of Rs. 16 billion and having just Rs. 1.1 billion

allocation for CY.

vii. GoB will follow up on Rail Transport, under which three new railway lines were envisaged. First

the Gwadar-Panjgur-Quetta Link; second, Link from Quetta to Peshawar, which would reduce the

distance by 400 km and link Balochistan with Western China; and third the Gwadar-Panjgur-

Dalbadin segment of 515 km, which is important for transport facility for minerals.

Table 6.3A: Road Sector (Rs. in million)

Sr.

No

Strategy FY1,

FY2

FY3,

FY4

FY5, FY6,

FY7

Total Proposed

FA Portion

1 Capacity Development for

Planning & Procurement

45 90 135 270 270

2 Asset Management Plan 70 - - 70 70

3 Institutional Framework for

PPPs (Road Specific)

11 24 40 75 75

4 Development of Master Plans 100 - - 100 100

5 Priority Eco Corridors (Up

gradation/New 2500 km with

Donor Support)

3,000 7,000 15,000 25,000 20,000

6 Conversion of Shingle Roads to

paved Roads with Donor

Support (3000 km)

3,000 4,000 8,000 15,000 10,000


Sr.

No

Strategy FY1,

FY2

FY3,

FY4

FY5, FY6,

FY7

Total Proposed

FA Portion

7 Conversion of Shingle Roads to

paved Roads with own financing

(5000 km)

2,000 6,000 12,000 20,000 -

9 Maintenance of Existing Roads

(5000 km)

1,000 2,000 2,000 5,000 -


Schemes

10,000 10,000 20,000 40,000 -

Total 19,226 29,114 57,175 105,515 30,515

6.2 Water

6.2.1 Balochistan’s economy is predominantly dependent on agriculture which constitutes over 33% of

its GPP and a large majority of people rely on agriculture and livestock for livelihoods.

Agriculture’s productivity is directly contingent on the availability of water, which in the case of

Balochistan is scarce and highly variable being dependent on the rainfall. The strategy for

developing and conserving irrigation water resources are central to agriculture which uses about

97% of the water and also for the water supply requirements of both rural and urban populations.

Source: Balochistan; Development Issues & Prospects; Part II, 2012, World Bank

6.2.2 The water resources of the province consist of surface water and ground water and their major

source is precipitation. There are three major sources of water in Balochistan: the Indus Basin

Irrigation System (IBIS) comprising of perennial and non -perennial flows; floodwater Sailaba

comprising of run-off; and groundwater includes tube wells; springs; karezes (traditional system of

channels which bring water to fields) etc. Presently, the surface water resources of the province

constitute 96% of the total water resources available per annum, whereas the remaining 4% is

available from the groundwater resources. Of the total water resources around 57% are from

floodwater, which is generated in the mountains in the form of hill torrents and moves through

diversion structures into an open channel network (Fig 6.1). Of this less than 40% is utilized and

remaining drains back into sea from different basins.11

11

Balochistan; Development; Issues & Prospects; Part II, 2012; World Bank.

Floodwater

(Sailaba), 57% Accord Perennial

Canal Water

Supplies, 17%

Enhanced Perennial

Canal Supplies

(Raising of Mangla

Dam), 2%

Post Accord

Perennial Canal

Supplies, 20%

Groundwater, 4%

Fig 6.1: Water Resources of Balochistan


6.2.3 Groundwater, constituting about 4% of total water resources has been relentlessly utilized and

according to estimates some 60% of the available ground water has already been exploited through

tube wells and dug wells and the lowering of aquifers is becoming evident especially in the three

over-drawn basins; Pishin-Lora, Nari and Zhob. GoB and the GoP have been bearing huge fiscal

cost of subsidy on these tube wells which has resulted in serious depletion of the water tables in the

river basins.

6.2.4 Government recognizes that 33.1million acres comprising 38.6% of the total geographical area of the

province is suitable for agriculture. Of this only 4.5 million acres is under some form of irrigation

leaving over 86% of cultivable land which does not have access to water for irrigation. Again of the

4.5 million acres irrigated land a good 47% or so is irrigated through floodwater Sailaba farming,

very clearly reflecting the importance of floodwater in the overall water availability statistics.

Securing the underutilized floodwater both from Indus Water System as well as Non Indus Basin

must therefore remain central for water resources development in coming days (Table 6.4).

Table: 6.4 Balochistan’s Water Resources

Sr.

No Description

In Million Acre Feet (MAF)

Available Utilized Balance

A. Indus Water as per Indus Accord

1 Perennial 3.870 3.052 0.820

2 Flood 4.620 - 4.620

Total 8.490 3.052 5.438

B. Non Indus Basin

1 Flood Runoff 12.756 3.000 9.756

2 Groundwater 0.870 0.490 0.380

Total 13.626 3.490 10.136

G. Total 22.116 6.542 15.574

Source: Irrigation Dept. Brief, GoB(Note: slight calculation differences may arise, purely as a result

of rounding off)

Priority Areas

6.2.5 Government has undertaken considerable investments in the water sector in the past, which have

led to greater agriculture productivity and increase in incomes especially in the horticulture. Water

however continues to be scare and requires a scientific conservation and management to be able to

fulfill the growing needs of increasing population. These demands have led to over extraction of

groundwater in the river Pishin-Lora, Nari and Zhob basins leading to dangerous lowering of water

table. The tube well subsidy on electric tariff has cost huge resources; non judicious use of precious

water and wasteful use of electricity. Further the water productivity compared to the costs is

significantly low requiring a review of water usage to bring greater efficiency in the water use. In

the Indus Basin Irrigated System of Pat Feeder and Kirthar Canal, non-efficient use of water is

leading to water logging and salinity. These practices are further converging into a systematic

neglect of Sailaba and rain fed Khushkaba farming systems with adverse impacts on recharge of the

groundwater.


Table 6.5: Balochistan Irrigation Sector Allocation 2012-13 (Rs. in million)

Estimated Costs Allocation 2012-23


2012

GoB F.A Total Throw

Forward

Surface Water

On-going 35 3,021 1,500 4,521 1,790 516 1,177 1,693 1,039

Surface Water

New 109 1,686

1,686

1,521

1,521 165

Dams On-

going 10 1,625

1,625 804 184

184 637

Dams New 22 723

723

448

448 275

Total 176 7,055 1,500 8,555 2,594 2,669 1,177 3,846 2,116

Source: Irrigation Department, GoB (Note: slight calculation differences may arise, purely as a result of

rounding off)

6.2.6 GoB recognizes the significance of the traditional farming systems and their importance for water

recharge. The present investment portfolio is sparsely spread into many small and individuals’

sponsored schemes. There is realization that there is need to prioritize schemes on the basis of

larger and sustainable benefits. There are presently 176 schemes in the provincial PSDP, both On

surface Irrigation and Dams component and these require Rs.2.1 billion for completion (Table 6.5).

In the meanwhile the provincial Irrigation department has evolved a priority portfolio comprising of

major storages and the GoB plans to finance a few of these through own resources.

6.2.7 Some major water storages/dams have been constructed with the help of the federal government

such as the Mirani Dam and the Sabakzai Dam. GoP is presently financing 8 major schemes on

irrigation costing Rs. 27.98 billion and of which Rs. 11.7 billion is remaining. These include

interventions like Phase I & II of the 100 Dams; construction of Delay Action Dams for recharge of

groundwater in the Pishin, Mastung, Quetta and Mangocher valleys etc. GoB would engage with

Federal Government to complete most of these schemes in next one year by allocating the

remaining funds and to support a few important storage projects identified by the provincial

Irrigation Department.

Table 6.6 Status of Irrigation Schemes in Federal PSDP (Rs. in million)

Sr.

No Name of Project

Estimated

Cost

Expend June

2012

Allocation

2012-13

Throw

Forward

1 Construction of 100 Dams in

Balochistan (Package-1)-20 Dams 2,467.714 1,946.933 520 0.781

2 Toiwar/ Batozai Storage Dam,

District Killa Saifullah 4,344.743 842.568 1,000 2,502.175

3

Delay Action Dams Groundwater

Recharge of Pishin, Quetta, Mastung

&Mangocher Valleys 1,099.833 863.767 335 --

4 Extension of Pat Feeder Canal for

Utilization of Indus Water 5,769 3,509.055 800 1,459.945

5 Re-construction of ShadiKaur Dam,

Gwadar 4,149.2 1,751.45 1,100 1,297.75

6

6 Flood Dispersal Structures/

Conveyance on Nari River,

Dist.Bolan 4,912.386 1,307.138 1,500 2,105.248

7 Restoration of Bolan Dam, Dist.

Kachi 593.43 24.568 10 558.862


Sr.

No Name of Project

Estimated

Cost

Expend June

2012

Allocation

2012-13

Throw

Forward

8 Construction of 100 Dams (Package-

II)-26 Dams 4,647.43 180 700 3,767.43

Total 27,983.736 10,425.479 5,965 11,692.191

Source: Irrigation Department, GoB

6.2.8 Balochistan’s water resources’ future lies with floodwater as this is by far the largest resource of

water in the province and of which over 60% of potential is available which can be secured through

better water management and storages. This will require innovative approaches to shift people

towards river basin management by using the basin balance water including the historical water

rights. There are 14 major river basins and people will move towards proposed management by

limiting the energy use through reduced subsidy which would be phased off. The new strategy must

according work on the basis of specific River Basins as has been proposed earlier in the Balochistan

Report (2012). This way forward is based on efficient and equitable water sharing and will usher in

greater responsibility for water use for greater productivity and incomes.

6.2.9 For this the GoB would prioritize investments into a) Water Development and Management

projects; Basin –Wide; b) Improvement in the performance of Pat Feeder and Kirther Canals. These

would concentrate on a) construction of series of storages along the river basin with spate irrigation;

b) bringing in high efficiency irrigation systems to reduce use of energy and water; c) Spate

irrigation for Sailaba farming to enhance cultivated land and bring in new livelihoods. Similarly the

canal water performance would include; a) improving canal operations for more equitable water

distribution; b) use of high efficiency water system to reduce water wastage and crop diversification

and c) Integrated management of canal and drainage system and reuse of drainage water after

treatment. The present cropping pattern and the crops value requires a rethinking on the crops and

water usage. All this requires creating earlier proposed Balochistan Water Resource Management

Authority for implementation of the IWRM policy by creating Basin Water Boards to manage the

water at basin level.12

Strategy

i. Devolve water resource management at basin-level for a more equitable, responsible and

integrated and sustainable water use at this level through participatory management.

ii. Undertake construction of water storages/dams and spate irrigation systems for integrating the

storage water and Sailaba farming. GoB has identified storage dams under its priority list. These

may be undertaken urgently in alignment with basin-level development and management.

iii. Extensive encouragement of Sailaba farming integrated with dams command area for bringing in

additional land under cultivation and generating new livelihoods

iv. Improvement in the canal operations for Pat Feeder and Kirthar Canal for a more equitable water

distribution. Encourage use of high efficiency water system to reduce water wastage and crop

diversification.

12

Balochistan; Development; Issues & Prospects; Part II, 2012; World Bank.


v. Encourage integrated management of canal and drainage system at the canal command area and

reuse of drainage water after treatment. The present cropping pattern and the crops value does not

commensurate with the water value requiring a rethinking on the crops and water usage.

vi. Encourage the private sector to initiate local manufacturing of Drip and Sprinkler irrigation

systems in Balochistan by providing upfront buy back guarantee for equipment for first two years

and by announcing an acceptable level of layers of subsidy on the equipment for different

category of farmers. The higher efficiency irrigation systems will need to be popularized across

Balochistan for a very efficient water use. This will not be possible by way of according huge

subsidies on imported equipment year after. Other than being extremely expensive and

unsustainable. The only sustainable way forward is to encourage private sector to invest and this

can be done in multiple ways. Local manufacturing will bring down prices as demand increases

and this will bring in benefits of technology at doorstep with after sales service, spare parts and

replacements etc.

vii. Re model the tube wells prior to the installation of drip irrigation to reduce consumption of

electricity. Installation of new agricultural tube-wells to be discouraged in the over-drawn basins

and attention to be given to interventions for recharging the basins. Installation of tube-wells for

drinking purposes would be restricted only in case of replacement of dried wells. For the coastal

areas including Gwadar, the concept of skimming dug-wells to be introduced as tube wells are

likely to induce the intrusion of seawater into the thin freshwater aquifers in these areas.

viii. GoB will create an Apex body; a Balochistan Water Resources Management Authority

(BWRMA) for water regulation policy measures and implementation of IWRM policy:

o Under this, Basin Water Boards would be set up represented by local community and

farmers for participatory management of water resources at basin-level.

o Existing set-up of the BIDA would be examined and options for establishing the Basin

Water Boards for Pat Feeder and Khirther canals would be assessed.

o A “Water Conservation and Management Fund” would be constituted under the BWRMA

as a Rolling Fund for undertaking multiple small works; maintenance under the integrated

water management.

ix. Strengthen water management research institutions to undertake research for addressing the needs

of the sector and evolve in-service training programs mandatory for promotion of

technical/managerial manpower in water sector institutions.

Table 6B: Irrigation Water (Rs. In million)

Sr.

No

Strategy FY 1,

FY2

FY3,

FY4

FY5, FY6,

FY7

Total Proposed

FA Portion

1

Spate Irrigation for Sailaba farming

( New Livelihoods in all the major

River Basins 2,000 4,000 6,000 12,000 9,000

2 Improved Water Management in

Canal Command areas 1,000 2,000 4,000 7,000 5,250

3 Land Reclamation and Re use of

Drainage Water after treatment 300 850 1,100 2,250 1,688

4 Drip & Sprinkler Irrigation

Manufacturing under PPP 1,000 3,000 6,000 10,000 -


Sr.

No

Strategy FY 1,

FY2

FY3,

FY4

FY5, FY6,

FY7

Total Proposed

FA Portion

5 Dams identified under Priority by

Irrigation Dept. 8,000 8,000 18,000 34,000 -

6 Creation of IWRMA; Basin Water

Boards 123 241 369 733 550

7

Capacity Development of Irrigation

Dept. 80 80 90 250 188

8 Throw Forward of Existing Schemes 2,100 - - 2,100

Total 14,603 18,171 35,559 68,333 16,676


6.3 Water & Sanitation

6.3.1 Safe drinking water is vital for sustainable development as availability of safe drinking water can

contribute tremendously towards human health and ensure a more productive workforce. It is true

that there is no greater basic human need than access to safe drinking water and adequate sanitation.

The situation in Balochistan however continues to be grim. Leaving aside Quetta Zarghoon which

has about 98% improved drinking water resources; a large part of the province has less than 50%

availability of “improved water source”. The improved sources include piped water, public stand-

pipe or tap, hand pump, donkey pump or protected well. Unimproved sources include unprotected

dug wells, ponds, rivers, canals or streams as well as other less common sources such as vendor

provided, tanker truck or bottled.

Figure 6.2: Balochistan Sources of Drinking Water (PSLM 2010-11)

6.3.2 According to PSLM (2010-11) approximately 21% population relies on piped water inside and

14.2% on outdoor tap and another 12% on hand pump, other pumps and closed well. About 48% of

people rely on unimproved water sources. There is considerable variation amongst urban and rural

areas. In urban areas 74% people rely on piped water in the households whereas large part of rural

areas rely on unimproved sources and about 30% depend on river, stream, pond or canal. There are

considerable intra-district variations on the availability of improved water resources:

o Quetta, Pishin and Sibi are the three districts having more than 70% reliance on piped water

inside compound.

piped water (inside house) ,

21.1

out door tap, 14.2

hand pump, 9.6

motor pump, 2.3 closed well, 2.4

open well, 13.4

river/stream/canal, 29.7

tanker/water barier, 3.2

mineral water, .1 other, 4.1


o District Musakhel, Sherani, Jhal Magsi, Washuk and Dera Bugti have less than 5% piped

water source whereas Kohlu, Barkhan, Jafferabad, Panjgur, Harnai and Chaghi have less than

15% piped water within households.

o 14 districts have over 50% reliance on the river, canal, stream , pond water or other sources

which includes; Bolan, Jhal Magsi, Sherani, Musakhel, Zhob, Washuk, Awaran, Harnai, Dera

Bugti, Kohlu , Ziarat, Nushki, Chaghi and Killa Abdullah.

o Three Districts rely more than 50% on Wells, open or closed for drinking water source and

these are: Kharan, Kech and Panjgur.

6.3.3 The MICS 2010 assessment of the population in Balochistan using improved sources of water is

significantly higher than the PSLM data. According to this, 74% of the population in the province is

using improved source of water and of the 91% in urban areas and 69% in rural areas. Households

where the head had some education were more likely to be using improved source of water

compared to those where the head of household had no education. Also the use of improved source

of drinking water was positively related to economic conditions of the households.

6.3.4 In terms of in-house water treatment, 86% households do not use any water treatment methods such

as boiling; adding bleach/chlorine; using water filter etc. to make it safe for drinking. Only 7% of

population was using any type of water treatment method. What is more worrisome is that among

the households receiving drinking water from un-improved source, less than 4% were treating it for

making it safer.

Sanitation

6.3.5 The situation on the sanitation side reflects slight improvement compared to what it was about a

decade ago when an overwhelming 91% population had no access to any system of sanitation and

of which 98% was rural population. As per PSLM 2007-08, the percentage of population in

Balochistan with access to sanitation facilities remains low at 32%, however the prevalence of

underground, covered or open drains have all improved. In 2008, only 19% urban population was

without access to any type of sanitation facility, whereas a huge 86% of the rural population in the

province had no access to sanitation facilities (Table 6.7).

Table 6.7: Type of Sanitation Facility Used by the Households in Balochistan

2001-02 PIHS 2007-08 PSLM

Type of Sanitation Urban Rural Overall Urban Rural Overall

Underground Drains 5 0 1 24 3 9

Covered Drains 5 0 1 10 1 4

Open Drains 52 2 8 47 9 19

No System 37 98 91 19 86 68

Total 100 100 100 100 100 100

Source: PIHS 2001-02 and PSLM 2007-08(Note: calculation differences may arise, purely as a result of

rounding off)

6.3.6 MICS data shows better scenario. According to this 70% of population was living in households

using improved sanitation facilities, much higher in urban (93%) compared to rural areas (63%).

About (23%) of population had no sanitation facility and resorting to open fields/bushes for

defecation. A more segregated information region wise shows extremely poor situation in Zhob,


where 48% population was using unimproved sanitation facility and within this 41% had no

facility at all. Similarly 31% population in Nasirabad; 27% in Kalat and 24.5% in Sibi had no

access to any sanitation system and used fields/ bushes for defecation.

Table 6.8: Sanitation Facility (in %)

Region Improved

Sanitation

Unimproved

Sanitation

No Facility

Bush /Field

Quetta 81.3 18.6 8.5

Kalat 71.7 28.3 27.2

Sibi 72.3 27.5 24.5

Zhob 51.8 48.6 41

Nasirabad 65.1 34.8 31.1

Mekran 89.6 10.5 9.4

Source: MICS Balochistan 2010-11

Priority Areas

6.3.7 GoB under BCDS will provide special attention to the sector for improving the investments as well

as the operations of this sector. The biggest challenge facing the water & sanitation sector is

institutional as the overall institutional responsibilities; jurisdictions; budgets and manpower remain

extremely chaotic and weak. The situation has remained so for a long time like this. Despite

devolution where dedicated TMA authorities were designated at tehsil/ sub-divisional level, a large

part of the water supply schemes were being handled by the PHED. These TMAs throughout their

existence faced issues on availability of technical manpower other than sufficient budgets.

6.3.8 Subsequent to the reversal of devolution; and revival of the 1979 Local Government system, the

situation has further deteriorated. The water supply portfolio is now with the PHED solely and with

some dedicated Water Sanitation Authorities like Quetta Municipal Corporation. The Municipal

Committees and Town Committees receive bare minimum of funds and these do not have the

systems; manpower and the budgets to attend to this huge challenge on account of water &

sanitation.

Table 6.9: Balochistan's Water Supply & Sanitation Allocations FY 2012-13

Estimated Costs

(Rs. In million)

Allocation 2012-23

(Rs. In Million)


2012

GoB F.A Total Throw

Forward

Water Supply

On-going 53 3,899 1,124 5,023 2,058 597 377 974 1,992

New 69 1,506 1,506 1,286 1,286 220

Total 122 5,405 6,529 2,058 1,883 377 2,259 2,212

Sanitation

On-going 13 883 883 327 211 211 345

New 40 875 875 773 773 102

Total 53 1,758 1,758 327 984 984 447

Source: GoB Budget 2012-13(Note: calculation differences may arise, purely as a result of rounding off)


Strategy

i. GoB plans to develop a baseline for the population which does not have access to safe drinking

water and sanitation facilities and prepare a 3-year plan for providing drinking water and

sanitation to this population.

ii. GoB to undertake implementation of an Integrated Water & Sanitation investment portfolio in

partnership with local communities including women organizations for at least 5000 rural and

semi -urban settlements in the province. This may also be implemented with the support of

donors and with a strong third party monitoring framework.

iii. Strengthen these Water & sanitation institutions through improving systems; manpower and by

providing required investment funds and operational funds.

iv. Evolve UC wise local community groups to officially partner with the Town and Union Councils

for prioritizing schemes and developing partnerships for sharing costs and responsibilities and

monitoring.

Table 6C Water & Sanitation (Rs. in million)

Sr.

No

Strategy FY1,

FY2

FY3,

FY4

FY5, FY6,

FY7

Total Proposed FA

Portion

1 Institutional Strengthening of

Municipal Organizations 916 318 - 1,234 700

2

Baseline Study of households

without access to drinking water &

sanitation

150 100 - 250 250

3

Integrated Water & Sanitation

Program through Community

participation

2,000 2,000 6,000 10,000 6000

4 Rehabilitation of Water &

Drainage Schemes 500 500 2,000 3,000 -

5

Capacity Development of LG

Dept. for regulating water quality;

overseeing implementation &

Impact assessment

20 60 20 100 -


Schemes 1,000 1,700 - 2,700 -

Total 4,586 4,678 8,020 17,284 6950

6.4 Energy and Power

6.4.1 Balochistan presents an unfortunate scene on the energy front. A province which is rich in energy

resources including oil, gas, coal and renewable energy etc. and has been the major supplier of

natural gas for the country since the 1950s relies for heating and cooking purposes on bio mass

energy like firewood, animal dung and agriculture waste. Due to limited gas supply network natural

gas consumption in the province is extremely low.


6.4.

2

Commercial energy usage in Balochistan is lower than the national average. In 2010 –11, it

accounted for 2.2% of the nation-wide use of energy. Balochistan’s share in Pakistan’s

consumption of petroleum products was about 2.8%, for natural gas it was 1.5% and for electricity

5.25%. Electricity consumption is slightly higher than the national average primarily on account of

subsidy on electric tube wells. 75% of Balochistan’s electricity consumption is because of use of

agricultural tube wells, whilst 90% of gas consumption is towards power generation. Excluding the

quantum electricity and gas consumed for these purposes, the per capita consumption of these fuels

in Balochistan is about one quarter of the national average. Only a minority of the current estimated

population of about 9.6 million has access to electricity. There are only 406,000 electricity

consumers and power supply being highly erratic; it results in lowest per capita power

consumption.

6.4.3 Coal is the most common fuel for utility and industrial energy generation and given the ever

increasing furnace oil prices and depleting gas reserves in the country, this is the most economical

energy fuel. Balochistan has proven coal resources of 217 million tons, with measured reserves of

over 52 million tons. There are five coalfields: namely Khost Shahrig Harnai, Sore Range Dagari,

Duki, Mach and Pir Ismail Ziarat-Chamalang, which are all well-developed today. At present, an

average of two million tons of coal is being mined annually from these fields, which is more than

half of the coal extraction at national level. 90% coal is dispatched to other provinces for various

uses and applications. Balochistan can therefore very well use this coal for establishing coal fired

Power Plants at mine mouth or nearby locations for easing the electricity requirements in the

province.

Table: 6.11 Energy Consumption by Sector 2010-11 (Excl. Power & Fertilizer Feed stock)

Domestic Commercial Industry Agriculture Transport Others

/Gov't

Total Balochistan’s

Share

Balochistan

Oil (bbtu) 50 0 1,093 5 11,628 184 12,961 2.75%

Gas (MMcf) 9,019 649 197 0 827 0 10,693 1.49%

LPG (tonne) 10 5 1 0 0 0 16 3.44%

Electricity

(GWh) 464 94 114 3,265 0 111 4,048 5.25%

Coal (tonne) 0 0 0 0 0 0 0

Total 9,544 748 1,406 3,270 12,456 295 27,718 2.18%

Pakistan

Total

Oil (bbtu) 3,693 0 56,827 1,772 392,711 16,440 471,442

Gas (mmcf) 232,325 36,479 335,499 0 113,095 0 717,398

LPG (tonne) 259 182 25 0 0 0 465

Electricity

(GWh)

35,885 5,782 21,207 8,971 1 5,253 77,099

Coal (tonne) 0 0 7,558 0 0 0 7,558

Table 6.10 Natural Gas Production (in mmcf)

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

Balochistan 336,493 330,032 318,188 319,578 305,359 288,393 280,072

Pakistan 1,344,953 1,400,026 1,413,581 1,454,194 1,460,679 1,482,847 1,471,591

25% 24% 23% 22% 21% 19% 19%

Source: Balochistan Development Issues & Prospects; Part II, World Bank 2012


Total 272,161 42,443 421,115 10,743 505,806 21,693 1,273,962

Source: Balochistan Development Issues & Prospects; Part II, World Bank 2012

6.4.4 On the electricity side; the installed power generation capacity in Balochistan is about 650 MW

being generated from two power plants in the country namely the Uch Power Project (585 MW)

and Habibullah Coastal in Quetta (50 MW). Uch Plant receives its’ gas from the Uch Gas Field,

whilst Habibullah receives gas from the SSGC network. The Uch field’s reserves are larger than

what is required by the power plant; therefore, the GoP has sanctioned a second power plant (Uch

II) in the same area.

6.4.5 Renewable energy, both solar and wind, has a lot of potential in Balochistan. The Nokundi and

Chagai region have both been declared a ‘wind-corridor’, on the basis of a study financed by

USAID. Balochistan’s wind resource potential was estimated to be more than 20,000 MWs. Around

40% of the land area of Balochistan receives direct solar radiation, which has the capacity to

generate as much as 1.2 million MW of electricity. However, these estimates (both wind and solar)

are based on GIS data and / or satellite imagery. Also, many areas in the province are not

connected, or are not close to the transmission grid. The province’s demand for electricity is

scattered over a very large geographic area. Developing the wind and solar potential of the province

will therefore require significant amounts of financial resources, since these projects are capital

intensive.

Strategy

i. GoB plans to seek private sector interest to establish 150 MW power projects’ using its

indigenous coal in northern region at mine mouth i.e. at Loralai as well as Quetta. For this it

plans to invest in the equity for encouraging private sector interest in strategic utilization of its

indigenous resource.

ii. Simultaneously, GoB plans to negotiate with GoP for allocation of additional Natural Gas for

use in Balochistan in accordance with the constitutional framework. This will enable GoB to

attract industry in different regions including Quetta, Loralai, Hub, Gwadar as well as other

places.

iii. With this additional Natural Gas; the Government plans to set up a 100 MW gas-based thermal

power project at Hub with agreement to supply dedicated power to different regions in

Balochistan both for commercial, industrial and domestic use. GoB would participate in the

project through equity contribution.

iv. Undertake initial studies, data and institutional strengthening for the setting- up of off-grid,

solar power projects for providing electricity to sparsely populated settlements. This may be

taken up proactively with donor support and in case of non-availability of such support, GoB

may avail of only technical assistance to prepare feasibility and carry it forward through its

own resources.

v. Simultaneously GoB would engage with AEDB for establishing wind masts in the western

region of the province for recording wind speed data.



vi. For long term big power projects; the GoB may initiate the initial work relating to developing

and adoption a Policy Framework and Security Package, and an adequate institutional

capacity.

Table 6D Energy (Rs. in million)

Sr.

No

Strategy FY1,

FY2

FY3,

FY4

FY5, FY6,

FY7

Total Proposed FA

Portion

1 Establish two 150 MWs each

Coal- Based Power Projects 3,000 4,000 5,000 12,000 -

2 Utilize Indigenous Gas to set

up a 100 MW power project 2,000 3,000 2,500 7,500 -

3

Develop Policy Framework;

Incentive regime; capacity and

feasibilities 141 200 58 400 400

4 Institutional capacity for

Solar/Wind Power Projects 100 100 - 200 200


Schemes 418 - - 418 -

Total 5,659 7,300 7,558 20,518 600



07 Economic Growth


7. Economic Growth

i The ultimate success of implementation of the development strategy would be the visible gains on the

overall human development and formation of a human capital which can then steer the growth paradigm

in the long term. Simultaneously, the early signs would be gradually building up the infrastructure and

enabling environment for creating nurturing space for the businesses to grow as well as enter

Balochistan’s markets and create the badly needed greater and better jobs and incomes.

ii The Balochistan Comprehensive Development Strategy’s core objective is to re direct the public

expenditure into sectors and such components which can help in pushing up the provincial GPP’s

growth rate to around 7% annually over the next two decades. It is this growth which can create

employment for the new labor force as well as for the existing. The labor force in the province has

been estimated to grow at the rate of 2 to 2.5% a year and the elasticity of employment to the

growth in GDP has been estimated to be about 0.5%. Hence in order to absorb the labor force

growth, a GDP growth of 6.5 to 7% is required for next two decades or so.13

7.1 Private Sector Development and Financial Intermediation

7.1.1 GoB is aware of the importance of private sector, which is the engine of innovation, investment and

growth and it is realized that it is private sector which will bring- in growth, however such growth

requires conducive investment policies, regulation and certain critical inputs including

infrastructure and skilled manpower. In Balochistan most of the pre -requisites for strong private

sector participation are somewhat weak and among others the markets are also weak. In capital

market economies, it is the competitive markets which facilitate demand and supply and creation of

wealth and jobs for all, on sustained basis. Given the multiple impediments in the way of private

sector development in the province, the GoB plans to undertake special measures for strengthening

the private sector in different ways.

7.1.2 Agriculture constitutes over 30% of the GPP and despite its large share is constrained due to very

little value addition whereas trade and industry are concentrated in few urban centers with

somewhat limited spread affects. According to the latest establishment survey there are about

150,000 enterprises in Balochistan about 70% in the trade sector. Most are dependent on local

market and cater to the needs of a small, low income clientele. Marketing outside the area is limited

by infrastructural barriers as well as by the absence of marketing skills. The typical trading

enterprise is a family business often relying on formally unpaid labor and with weak links with

enterprises along its supply chain. The cost of doing business is especially high for small

enterprises because regulatory procedures – registration, taxation, and inspection procedures are not

embedded in socially legitimated bazar practices.

7.1.3 The cost of doing business in Balochistan is higher than almost anywhere in Pakistan. On the basis

of an overall Doing Business Index; Quetta ranks 12th amongst 13 Pakistan cities.14

It is

particularly cumbersome, time consuming and expensive to enforce contracts, register property,

obtain construction permits and organize trade in the case of Quetta businesses (on the other hand

starting a new business and paying taxes is relatively easy in Quetta). This indicates the need for a

major overhaul of the public administrative structure regulating business operations. Clearly there

are too many regulatory tiers of authority that can be eliminated or intuitionally subsumed within

the system for facilitating business operations in the region.

13

Balochistan; Development Issues and Prospects; Part 1; (2012) World Bank 14

World Bank; Doing Business in Pakistan (2010)


7.1.4 Private sector development is also constrained due to continued lag on education where the labor is

predominantly illiterate and there are limited technical and managerial capacities to steer the

businesses. Weak presence of financial institutions and low credit availability is another crucial

factor which impedes investments in almost all sectors. In addition, lack of adequate infrastructure

especially transportation; energy and water also impedes business growth. All these major factors

work as a vicious cycle of weak inputs of capital, labor and knowledge leading to low productivity;

small profits, savings and investment.

Table 7.1: Costs of Doing Business in Pakistan 2009 (Ranks)

City Ease of

Doing

Business

Starting

a

Business

Dealing with

Construction

Permits

Registering

Property

Paying

Taxes

Trading

Across

Borders

Enforcing

Contracts

Faisalabad 1 2 6 1 3 4 2

Multan 2 6 1 7 3 5 4

Lahore 3 3 3 4 3 13 8

Islamabad 4 1 8 3 1 11 10

Sheikupura 5 9 8 5 3 7 6

Gujranwala 6 13 2 6 3 10 4

Sukkur 7 10 4 10 11 3 1

Peshawar 8 3 6 9 10 8 8

Karachi 9 3 10 11 11 1 3

Rawalpindi 10 8 5 7 3 12 10

Sialkot 11 12 11 1 3 5 10

Quetta 12 6 12 13 2 9 13

Hyderabad 13 11 13 11 11 2 7

Source: World Bank, Doing Business in Pakistan (2010)

Financial Sector in Balochistan

7.1.5 Bank credit is unquestionably an important determinant of the level and composition of economic

activity in any region. Balochistan comes out as a most credit starved province in the country

having a share 0.34% in total bank credit of the country in 2011-12. As against total bank deposits

of Rs. 138.17 billion in the province, the credit disbursement was only Rs.12 billion in the entire

province, which works out to be a credit to deposit ratio of 8.69%, the lowest in the country.15

The

Rs. 12 billion credit includes Rs. 3.79 billion of SME credit as well as Rs. 315.8 million s ZTBL’s

Agriculture Credit The size of deposits and advances indicates that the bank branches are primarily

just collecting deposits’ in most of the province and a preponderant percentage of which is utilized

outside Balochistan. In terms of presence, there are only 314 bank branches of scheduled banks, 19

booths, 41 branches of Islamic banking and 16 sub branches. These bank branches are mostly

concentrated in a few districts.

7.1.6 Not only is the financial sector weak and thin, it’s characterized with gross inequities, particularly

in the utilization of bank credit. Balochistan’s three districts namely Quetta, Jafferabad and

Nasirabad utilize about 75% of the total credit disbursed in the province. If we add Loralai, Lasbela

and Turbat, to these, it then constitutes over 85% on an average in the last 5 years. This reflects a

marginal availability of financing in large part of the province. Compared with credit utilization,

the bank deposits are also concentrated in Gwadar, Turbat, Lasbela, Quetta, Killa Abdullah,

Khuzdar and Jafferabad.

15

State Bank of Pakistan 2012


Table 7.2 Balochistan Credit and Deposit Concentrations (in %)

Credits Jun-08 Jun-09 Jun-10 Jun-11 Jun-12

Quetta, Jafferabad, Nasirabad 74.02 69.1 77.04 76.29 82.91

Quetta, Jafferabad, Nasirabad, Loralai,

Lasbela & Turbat 85.4 84.87 86.4 83.83 88.4

Source: State Bank of Pakistan 2012

7.1.7 Balochistan’s share in the SME sector is also dismal. It works out at less than 2% of the total SME

credit in the country. The share of borrowers is slightly higher at around 3%, which could mean that

the size of credits is smaller. Again, there is heavy concentration of utilization of SMEs financing in

three districts namely Quetta, Nasirabad and Jafferabad. Roughly similar is the position with

respect to the financing by the micro-financing banks (MFBs) although the level of total operations

is very small. As of June 2010, financing was utilized by only eight districts and only by 4 districts

by June 2011 and June 2012. The total amount of micro credit disbursed in Balochistan was Rs.155

million and it was accessed by 18,256 borrowers. The share of Balochistan in the micro finance

works out to be 0.44%.

Table 7.3 Balochistan SME Credit

Jun-12 Dec-10

No. of

Borrowers

Outstanding Amount

(Rs. In million)

No. of

Borrowers

Outstanding Amount

(Rs. in million)

Pakistan 147,286 245,544.16 211,442 334,221.35

Balochistan’s Share 4,681 3,794.39 6,518 4,941.205

Balochistan’s Share in % 3.18% 1.54% 3.08% 1.48%


7.1.8 Equally disturbing is the situation on Agriculture, which is the backbone of the provincial economy.

It can be seen from Table 7.4 that Balochistan’s total share has not exceeded 0.5% in last five years.

In terms of sectors, agriculture, manufacturing, construction and commerce and trade utilized bank

credit in the amount of Rs. 5.343 billion or 85.4% of the total credit of the private sector and 44.5%

of the entire bank credit in the province. If transport and storage sector is included the targeted

beneficiaries will increase to 91.14% of the credit in the private sector and 47.5% of the total credit.

Table 7.4 Balochistan's Share in Agriculture Credit (Rs. in million)

Category Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12

Punjab 1,507,138 2,49,393 1,80,159 9,77,614 2,24,455 1,60,259 1,004,486 2,13,507 1,54,023

Sindh 2,09,823 35,378 30,857 100,005 30,503 23,522 1,04,429 26,734 20,310

KPK 63,761 7,957 8,524 53,832 7,030 7,681 5,735 6,519 7,338

Balochistan 5,103 279 825 1,556 247 787 2,292 577 768

AJK 18,447 591 690 12,901 546 660 10,678 482 566

Gilgit

Baltistan 3,125 253 476 1,313 241 399 1,684 301 410

Balochistan

Share 0.280 0.095 0.370 0.140 0.094 0.400 0.196 0.230 0.420

Source 1: State Bank of Pakistan 2012


7.1.9 Given the dismal situation of the financial sector in Balochistan, the GoB plans to engage with the

State Bank of Pakistan on how to get out of this catch-22 situation of small finances, small

businesses, and low credit worthiness. The GoB would float a proposal to convert a part of the

profit accruing from the deposits in Balochistan into a Credit Guarantee Scheme, to encourage

greater financing. GoB would however evolve a Credit Guarantee Scheme through its own

resources in consultation with SBP for ensuring expansion of the financial sector in Balochistan

both in terms of the size of disbursements as well as its reach out in all regions of the province and

to almost all important sectors. Amongst others, the issue of acceptable collateral as well as

transactions in English language would also require solutions for an effective reach out.

7.1.10 In addition to above, GoB would establish the Balochistan Board of Investment for creating an

institution which can act as one window for facilitating investments in the province, both local as

well as international. A dedicated fund, Balochistan Enterprise Development Fund, would be

created for supporting small and medium enterprises in the province through multiple measures

including subsidy on credit, technical and feasibility studies, matching grants for certain strategic

investments and so on.

Public Private Partnerships (PPPs)

7.1.11 One of the ways to encourage greater participation of the private sector in the province and to

encourage greater efficiency and investment in infrastructure could be through use of Public Private

Partnerships (PPPs). Encouraging use of PPPs for infrastructure building and for social services

could be particularly beneficial for Balochistan as underinvestment over many decades has created

bottlenecks which may take some time to overcome and PPPs if undertaken appropriately can

provide an impetus to a significant segment of economic activities.

7.1.12 Public Private Partnerships (PPPs) are basically contractual arrangements between the public sector

and a private party for the private delivery of public services, in particular infrastructure services.

These range across service contracts, management contracts, leases, concessions such as build-own-

operate-transfer, divesture, and build-own-operate contracts etc. Some of the things which could be

undertaken in the provincial context are private sector management of utilities, private investments

in road sector, agriculture markets, power projects, construction and operations of harbors,

establishing and operating tourist resorts and these could also be undertaken for social sector

projects.

7.1.13 GoB is cognizant of the potential and plans to gradually put in place policy, institutional, financial

and risk sharing mechanisms. As the PPPs require considerable effort at institutional development

as such, GoB is considering seeking technical assistance of one of the international donors for

supporting capacity development together with legal and institutional framework. Also this requires

consistent capacity building for project development, procurement, risk evaluation, finalizing

contracts and concessions etc. This will also necessitate creation of a Viability Gap Fund (VGF) for

financing such projects that have viability gaps despite being viable economically.

Private Sector Development

7.1.14 The Government plans to encourage expansion of the private sector by creating enabling

environment including security and stability. Second it will evolve policy frameworks that allow

adequate returns and premiums with the challenging situation in the province. The other essentials

are availability of land with clear titles, the availability of skilled labor force, availability of

infrastructure, affordable finance and enforcement of contracts, etc. In the existing circumstances

of Balochistan, certain pre-requisites for the participation of the larger private sector including

multinational companies are likely to remain weak in the short term. GoB accordingly plans to


reach out to the local private sector through different instruments such as strengthening of

enterprises through improvements of their systems, manpower and business plans. Technical

assistance with feasibilities and attaining financial close are few of direct strengthening measures

which can help the private sector in Balochistan.

Strategy

7.1.15 GoB under the BCDS, plans to undertake interventions which will help to spur private sector

participation in the economy within the medium term.

i. Establish a Balochistan Board of Investment (BBOI) preferably under a chairman from the

private sector and representation of motivated personnel from private sector and public

nominees to work with the government and the private sector for fostering better investment

climate. Balochistan is endowed with innumerable resources which require investments at

both national and international level. It requires development of an investment profile which

can be exhibited and marketed for soliciting proper investments in multiple sectors. The

BBOI to work as a One Window operations facility for facilitating required approvals and

sanctions from a range of public sector offices.

ii. GoB will set-up a Balochistan Enterprise Development Fund (BEDF) under the BBOI for

supporting enterprises in multiple sectors. The support could be through technical assistance

in the form of feasibilities, documentation, linkages, credit subsidy, matching grants, etc.

iii. Initiate work on establishing Legal and Institutional Framework for Public Private

Partnerships by creating a dedicated PPP unit. It simultaneously requires creation of Viability

Gap Fund (VGF) and subsequently a Risk Management Unit as well. GoB may contact one

of the multi-lateral donor partners for technical assistance for the capacity development as

well as helping GoB to undertake one project for implementation under PPP mode.

iv. Undertake a dedicated Private Sector Development Program again with the help of

international donors. This requires working mostly with local enterprises for strengthening

their systems and businesses. It also involves market reforms to make these competitive.

Such intervention will require investment in research and knowledge management that can

make the investments profitable and encourage their participation.

v. Engage with SBP for negotiating multiple interventions which can facilitate expansion of

credit in the province. Credit for enterprises, including large and small industry, agriculture

including livestock, fisheries as well as micro credit for dedicated poverty reduction. GoB

may negotiate with SBP to convert a part of the profit on deposits accrued in Balochistan into

a Credit Guarantee Scheme for guaranteeing a part of the credit carrying slightly higher risks.

GoB will however create a credit Guarantee Scheme through its own finances in consultation

with SBP. The requirements on collateral require a review together with documentation in

English. The documentation may be converted into local languages for bringing in greater

confidence of the population in the banking transactions.


Table 7A: Private Sector Development (Rs. In million)

Sr.

No

Strategy FY1,

FY2

FY3,

FY4

FY5, Fy6,

FY7

Total Proposed FA

Portion

1 Establishing a PPP Unit & Risk

Management Unit in GoB 145 138 164 447 335

2 Setting Up a Viability Gap Fund 1,000 1,000 4,000 6,000 -

3 Establishing Board of Investment as

One Stop Window for Investment 140 133 105 377 283

4 Establishing Balochistan Enterprise

Development Fund (BEDF) 400 400 600 1,400 -

5

Strengthening Private Sector Firms;

capacity development; system

development program

200 200 - 400 300

6

Credit Guarantee for Overall Credit

(Agri, Livestock, Fisheries,

Enterprise, Industry etc.)

600 1,000 1,900 3,500 -

Total 2,485 2,870 6,769 12,124 918


7.2 Agriculture

7.2.1 It is indeed paradoxical that agriculture is the lead sector

of the economy given the fact that Balochistan is a

highly arid region, having extremely low precipitation

levels, limited canal command area and away from the

national corridor which links businesses and major

urban centers. This only reinforces the state of under-

development in the province where what could have

been its lead sectors like the petroleum and the minerals

have unfortunately either not contributed to its economy

or these have not been developed. Agriculture is thus

the mainstay of the economy contributing more than

30% to provincial GPP and with an overwhelming majority of the population who depends on it

directly or indirectly. The highly diverse agro-climatic zones in the province from coastal belt,

barren deserts, and fertile plains on one hand and higher plains to mountainous regions on the other

facilitate production of a wide variety of crops, vegetables and fruits. The sector however, has been

historically faced with huge fluctuations on account of weather conditions and will continue to be

faced with these in future and has to accordingly adapt to these volatilities within its policy

frameworks.

7.2.2 Presently about 2.1 million hectares are being cultivated in the province and there is around 3.99

million hectares of cultivable wasteland that can be brought under cultivation in case water

resources can be expanded.16

Balochistan’s value of agriculture production increased sharply by

about 150% in the period between early 1990s to mid-1990s primarily on account of product

diversification when farmers switched from field crops to vegetables and since mid- 1990s when

they switched from vegetables to fruits in response to output prices.17

This demonstrates that given

16

Balochistan Agriculture Statistics 2010 17

Pakistan’s Balochistan Economic Report. 2008. World Bank, Asian Development Bank and Government of Balochistan.

Report No. 40335 Pk. Volumes I and II.


the water constraints, the biggest gains of productivity would occur from high value products and

efficient use of water together with technology. Again the province’s own record reflects that these

productivity gains declined by 20% from mid -1990s to the early 2000 on account of drought.

Hence the major threat to the agriculture and livelihoods would continue to be from water

constraints propelled by weather uncertainties.

7.2.3 Notwithstanding the cyclic droughts and the production fluctuations, the process of change in

agriculture has moved ahead and there is already a small beginning such as introduction of micro

irrigation systems, chemical fertilizers, high yielding new crop varieties, plant protection practices,

mechanization and adoption of water management practices. Wheat and fruits are the two dominant

crops in the non- canal command area and wheat and rice in the canal command area. The main

products in the non -canal command area are fruits such as dates, apples, grapes, apricots, almonds,

pomegranates etc. Wheat production has been contingent to the cultivated area however the greater

productivity gain has been from the orchards which expanded from year 2000s onwards.

7.2.4 The Government is aware that the overall productivity continues to be low and that the water usage

is generally wasteful despite being a scarce resource. The public sector interventions have largely

remained low (Table 7.5) given the past fiscal constraints however; these have been slightly

inequitable and largely directed towards a smaller segment of the farming community i.e. canal

irrigation and the tube wells. Most of the agriculture schemes are small and these mostly relate to

on-farm water management. There is therefore a need to evolve a planned portfolio which firstly

attends to the larger segment of the beneficiaries and promotes productivity gains through greater

linkage with technology, markets and is sustainable.

Table 7.5:Agriculture Allocations FY 2012-13(Rs. In million) No of

Schemes

Estimated

Cost

Expenditure

June 2012

Allocation FY

2012-13

Throw

Forward

Extension 31 1,412.68 474.96 720.40 217.33

Research 2 48.21

38.21 10.00

Agri Engineering 7 172.36 75.58 76.79 20.00

40 1,633.25 550.54 835.40 247.33 Source: GoB PSDP 2012-13(Note: calculation differences may arise, purely as a result of

rounding off)

Priority Areas

7.2.5 Government under the BCDS will address the major constraints faced by Agriculture to gradually

improve the productivity as presently the overall yields of most of the crops are lower than the other

provinces. Other than the endemic issue of water there are issues of lack of certified seed and other

inputs; the extension services are almost non-existent; the markets are small, few and weak and then

there are issues of infrastructure including transportation and storages etc.

7.2.6 GoB is cognizant that availability of water on sustainable basis will determine the future roadmap for

agriculture. The wasteful water mining practices have led to triple jeopardy of depleting water table;

strain on fiscal resources and wasteful use of electricity. It is widely recognized that the groundwater

management problems can be overcome by controlling over exploitation of water, introducing

legislation and strengthening institutions. GoB has made efforts in the past to recharge the water

tables through check dams, delayed action dams, ponds and dikes and rehabilitation of karezes

however these now require strategic shift towards an integrated but devolved water management at

the basin-level for a more equitable and sustainable water resource usage.


7.2.7 GoB will accord focused attention to harnessing of the un-utilized floodwater resource, which is by

far the largest water resource in the province. It will introduce well-planned investments in water

storages and other structures for bringing the 3.9 million hectares of cultivable waste under

cultivation. This will be done by encouraging the Sailaba farming, which can bring in additional 1

million hectares of land under cultivation and can generate livelihoods for about additional 200,000

households in the province.18

Coupled with the issue of harnessing more resources, is the challenge

of improving the water productivity all across. In the upper lands, the improvements in fruit yields;

varieties and post -harvest handling, together with efficient water use are major issues. In the canal

command areas, cultivation of water intensive crops like rice is proving to be detrimental to

economic use of water and is creating serious environmental degradation. The rice crop here,

consumes 60 inches of water per crop harvest causing water logging and salinity.

7.2.8 Agriculture extension work in the province has remained challenging given the peculiar socio-

economic and geographic conditions. The public sector extension staff, i.e. the Agriculture Field

Assistants are mostly untrained and do not possess the technical knowledge of agriculture and

further the system weaknesses have made the entire public extension system dysfunctional. GoB

acknowledges that it is now time to re think extension and explore possibilities of collaboration with

private sector for bringing in better reach out mechanisms through use of ICT. Though this would

initially pose a few challenges, however such extension through mobiles, call centers etc. have

succeeded in poor regions in Africa and are increasingly becoming popular in the under developed

world. Recent interventions in the Punjab on this account are reflected below:

7.2.9 The use of ICT based extension services is doable even within the under developed rural settings

context in Balochistan. This will cut across the innumerable barriers to providing information and

knowledge to small farmers. The use of ICTs for agriculture extension is increasing in Asia and

Africa, especially with the recent expansion of mobile phones. Mobile Phones and ICT devices are

used to provide market information; advice on improved agriculture practices, farmer education,

input availability and their use and so on. This however will hinge on its design, connectivity with

people and some basic orientation of target beneficiaries for popularization.

7.2.10 Similarly there is very little presence of the private marketing companies both for supply of inputs

as well as for marketing of products. The public sector agriculture markets are riddled with

inefficiency and are dominated by the middle men. There are positive movements across the region

including many Indian provinces as well as within Pakistan in Sindh and Punjab to amend the

erstwhile Market Act 1939 by allowing greater participation of the private sector and encouraging

18

Balochistan; Development; Issues & Prospects; Part II, (2012) World Bank

With a view to provide extension services to the small farmers, the Punjab Agriculture

Department has engaged Centre for Agriculture and Biosciences International (CABI), an

international organization to make use of mobile technology and reach out to thousands of

farmers through their cell phones. CABI is reaching out to these farmers through voice calls

and SMS and has translated the contents of SMS and voice messages in Urdu to overcome

literacy barriers of recipients. A help line has been activated to provide real time advice to

farmers for crops related issues, supported by a panel of field experts. This has created new

possibilities for reaching out to small farmers in far flung areas and builds their capacity in

crop management, pest management, productivity enhancement and other areas.

Box- 7.1: Use of Technology for Agriculture Extension Services in Punjab


reforms in the public sector sponsored markets. Encouraging vibrant agriculture markets can be

instrumental in stabilizing prices and providing greater returns to the growers. Non-availability of

adequate agriculture markets, storages, processing, packaging and cold storages are serious

constraints. At present there is only one wholesale fruit and vegetable market in Quetta which can

barely cater to the farmers in Quetta and its suburbs. There is no market in Mekran region, with the

result that the dates are taken to the markets in Sindh and are sold at a throw away prices. Nasirabad

and Jafferabad is the granary of the province and there is only a small grain market at Dera Murad

Jamali. Elsewhere, the farmers sell their produce to middle men without full knowledge about

prices.

7.2.11 The availability of quality seed, fertilizer and other inputs is another area of concern. Out of

country’s 367 registered seed companies, only 3 are located in Balochistan. The private sector

provided only 5.5% of seeds and public sector provided another 8.4%. Some major bottlenecks are

non -availability of adequate storage capacity. Also the system for certifying nursery stocks for

seedlings is also under developed. On the side of fertilizer and pesticides, the logistic impediments

have limited the presence of private companies and it is believed that many farmers do not make

adequate applications of these inputs.19

There are very few research stations in Balochistan and

existing fleet of scientists is hardly capable to undertake research based on the farmers’ field issues

or evolve seed varieties, which can increase yields. There is only one Agriculture Research Institute

located at Quetta with 12 directorates mostly based in the divisional headquarters with little output.

Strategy

7.2.12 Given the extensive structural impediments, the GoB recognizes that agriculture strategy will

require a greater role of the public sector than is the case in other parts of the country. Water

resource management and sustainable and equitable farming systems will remain central to the new

thinking and these must now be handled at the river basin level under participatory approach.

Effective water usage through Sailaba farming and use of high efficiency water systems; change

over to high value products at river basin level would be central to sustainable water use. For

effective extension services; availability of quality seeds and other inputs, competitive markets and

the entire supply chain must be brought closer to the farmers through innovative strategies. The

situation therefore requires newer thinking on the way forward.

i. Encouraging Sailaba farming under spate irrigation by development and management of

water resources at basin level and integrating Sailaba with the Storages/ Dams command

area.

ii. Introduce high value products through use of high efficiency irrigation systems for raising

productivity and water conservation.

iii. Bring additional area under cultivation through Sailaba farming for enabling additional

households to get livelihoods from agriculture. There is potential to cultivate 1 million

hectares of additional land under farming and benefiting about 200,000 households. This

would require a mapping of potential regions and target beneficiary populations for Sailaba

farming and ensuring availability of inputs and services through private sector.

iv. Integrate the command area of the existing small dams (Mirani & Sabakzai) as well as of the

dams under construction with the Sailaba farming under traditional spate irrigation. These

command areas must be encouraged to use high efficiency irrigation systems and diversify

19

Balochistan; Development; Issues & Prospects; Part II (2012) World Bank


towards high value products for maximizing the returns by intensifying the yield and

improving water productivity.

v. Rehabilitation and modernization of Karezes command area. This will facilitate water

recharge and introduction of high efficiency irrigation systems and high value horticulture

will maximize productivity and returns. This can further be integrated with watershed

management including trees, grasses and bushes to bring in greater community stakes.

vi. Computerize and document the Land Titles in the command area of the existing and new

storages to bring in better transparency in the land ownership component in the province

vii. Improving productivity and sustainability of canal command areas – Pat-feeder and Khirther

canals and minor perennial irrigation schemes by adjusting crop patterns with water

availability in both the major canals. The high water consuming crops like rice require a

diversification towards oil seeds, vegetables, fodder, pulses etc. for water conservation and

higher product values. Simultaneously the waterlogged and saline land to be reclaimed in the

command areas.

viii. Partner with private sector to evolve a mechanism for “ICT Based Extension Services”. There

are many companies who can evolve a design tailored for Balochistan’s rural and semi urban

settings. It may require certain investments in farmer education on the system and providing

them mobile phones. Also initially tehsil level tele-centers can be created by training the local

staff for acting as the hub of information, knowledge and connectivity. Agriculture extension;

market prices; input availability together with other sector information such as livestock;

fisheries; immunization etc. can all be provided.

ix. Given the small presence of private sector seed, fertilizer and pesticides companies; the tehsil

tele-centers centers can act as the information hubs and eventually become sale points for the

agriculture and other inputs on cost sharing basis.

x. Partner with private sector to establish modern agriculture markets at strategic locations.

Initially one Agri Marketing Company can be established with linked smaller markets at

district level and expanded at tehsil level. These can be gradually equipped with cold

storages, processing and value addition facilities and also having the information of

marketing trend of all national markets and such information is disseminated up to grass root

level under ICT Extension model.

xi. Ensure availability of agriculture credit through a special arrangement with the SBP for all

components of Agriculture including livestock, fisheries, markets, processing and packaging.

This can be initially undertaken by evolving a Credit Guarantee scheme to create greater

confidence of the financial sector.

xii. Focus on women through dedicated interventions under on- going and new community

empowerment programs. Evolve a program for grant of subsidized inputs including certified

seed and fertilizer for high value products to women farmers.

xiii. Formulate Agriculture Policy for Balochistan in line with the IWRM Policy 2006 to cover all

major farming systems. Review of existing institutions to adjust these with changing

dynamics of agriculture productivity. Initiate sub-sector specific institutional reviews to

convert existing institutions into better performance organizations geared to work with

private sector and the communities in a participatory mode. The dynamics of reaching out to


people are changing and as such service organizations can no longer work under bureaucratic

and detached mode.

xiv. Linkages and joint planning and programming with irrigation and power, forestry and

livestock departments. There is a need to have integration of various sub-sectors of land use

to maximize the returns – crops, forestry, fisheries, livestock, fruits and vegetables.

xv. Making research more effective. The research output in Balochistan needs to be improved as

currently there is little to show on any major component. It may be seed varieties; horticulture

plants and their varieties; disease control; yield improvements etc. the performance remains

low. There is urgent need to undertake organizational review and improve budgets,

manpower and make research performance based.

Table 7B: Agriculture (Rs. In million)

Sr.

No.

Strategy FY 1,

FY2

FY3,

FY4

FY5,

FY6, FY7

Total Proposed FA

Portion

1

Promote Sialaba farming for

existing as well new farms in all

major Basins 1,000 1,500 3,500 6,000 -

2 On Farm Management (All

Major River Basins) 500 1,500 2,000 4,000 3,000

3

Develop Command Area of

existing and new Dams for HV

products through HEIS 1,000 1,500 2,000 4,500 -

4 Introduction of HEIS and HV

products Groundwater zones 800 1,200 1,000 3,000 -

5

Improving Water Productivity

of Pat Feeder and Khirther

Canals & Land Reclamation 100 1,500 2,000 3,600 -

6

Establish Agri Marketing

Company & linked markets

(PPP) 500 600 700 1,800 -

7

Strengthening Agriculture

Department – Policy &

Regulation, 60 100 150 310 233

8

Establishment of Call Centre

for ICT Based Extension

services 500 600 900 2,000 1,500


Schemes 247

247

Total 4,707 8,500 12,250 25,457 4,733

7.3 Livestock & Rangelands

7.3.1 Livestock is an important sub-sector of agriculture and the national reliance on livestock is evident

from its contribution to both the macro and micro economies. Livestock contribution accounts for

approximately 55.10% of agricultural value added and 11.5% in total GDP during 2010-11. At the

micro level, nearly 35 million people living in rural areas rely on livestock and earn approximately

30-40% of their income from this resource which additionally provides food security and works as

safety net for them.


7.3.2 Balochistan is endowed with a rich livestock resource. The percentage share of cattle, buffalo,

goats, sheep, camels and pack animals of Balochistan in national livestock population was 7.6%,

1.2%, 21.9%, 48.3%, 41.2% and 11.3%, respectively20

. A time series data from 1986 to 2006 for

the contribution of livestock species of Balochistan in the national livestock species pool is given in

Table 7.6. It reflects that the share of cattle in the national livestock population has increased by

1% in this time period; buffalos have increased by 0.4% in 2006 compared to 1996; goats have

reduced by 0.8% from 1996; sheep have increased by about 2% and camels constitute almost same

share in this period.

Source: Livestock Census 1986, 1996, 2006

7.3.3 It is evident that the livestock sector in the province is dominated by small ruminants and these

together constitute more than 30% of country’s small ruminants’ population (Fig 7.1 & Table 7.6).

There are basically three categories of ownership and production systems for these small ruminants

i.e. nomadic, transhumant and sedentary. Nomadic and transhumant are migratory systems and

together these constitute 80% of the small ruminants’ population in Balochistan. The dairy

production system has been traditional up till now where animal population is scattered and these

are low producing due to traditional rearing system. Gradually the trend of artificial insemination

and improving feedlot has begun in the canal command area where dairy is slowly being handled

commercially. This trend however is restricted to urban areas.

Table 7.6: Contribution of Balochistan in National Livestock Pool

Species

1986 1996 2006

Pakistan Balochistan % Pakistan Balochistan % Pakistan Balochistan %

Cattle 17.54 1.15 6.6 20.4 1.34 6.6 29.56 2.25 7.6

Buffalo 15.7 0.06 0.4 20.3 0.16 0.8 27.33 0.32 1.2

Goats 29.94 7.29 24.3 41.2 9.37 22.7 53.79 11.78 21.9

Sheep 23.28 11.11 47.7 23.5 10.84 46.1 26.49 12.80 48.3

Camel 1.0 0.34 34.0 0.8 0.33 41.3 0.92 0.38 41.2

Pack Animals 3.5 0.4 11.4 4 0.42 10.5 4.77 0.54 11.3

Source: Livestock Census of Pakistan 1986, 1996, 2006.

20

Livestock Census of Pakistan (2006)

0

2

4

6

8

10

12

14

1986 1996 2006

1.15 1.34 2.25

0.06 0.16 0.32

7.29

9.37

11.78

11.11

10.84

12.8

0.34 0.33 0.38

Cattle

Buffalo

Goats

Sheep

Camel

Fig: 7.1: Livestock Population in Balochistan (in million)


7.3.4 Livestock sector constitutes roughly 33% of the provincial agricultural GPP, this has declined on

account of the drought, however, rearing livestock is one of the major source of livelihood of over

75% of the population in the province. It enables the poor and the landless farmers to earn income

using communal rangelands for rearing the animals and this provides them with food security as

well as works as a social safety net against crop failures and other adversities. It is a readily

marketable and hence can provide cash to meet farmer needs and social obligations. In some cases

it also provides the sole source of farm power and transport.

Priority Areas

7.3.5 GoB recognizes that the livestock together with agriculture are the lifeline of a large majority of

the population in the province and despite intermittent droughts this sector has remained quite

resilient. This sector has received little quality support from the public sector in the past except on

the side of animal health, however given the tremendous potential of this sector for growth and

improving livelihoods, the Government plans to accord priority to it in the way forward.

7.3.6 One of the major constraints in the growth of livestock is the deficiency on account of nutrition.

The sector’s performance up till now has been solely on account of nature, as the natural

rangelands have supported the feeding requirements of the livestock especially the ruminants till

now. The rangelands over the years have depleted and the feed availability is now increasingly

deficient in the nutrients required by the animals. The low nutritional value is believed to be

responsible for high mortality rates and proneness for disease and low productivity.

7.3.7 Associated with this issue is the rangeland development, which is the major source of grazing and

survival of the livestock in the province. Over 93% of the total area in the province (34.72 million

ha) is covered by rangelands and of the 21 million ha is considered medium to good grazing land.

These rangelands provide the bulk of feed requirements of the small ruminants. The overall

productivity of these rangelands has been declining and the prolonged droughts have also

increased the degradation. The biomass provided by the rangelands is now much less than the

requirements of the grazing livestock and also there are increasing stock water constraints

requiring attention. This requires a re -vegetation and restoration intervention with the assistance

of technical experts including international donors having specialization in natural resource

management through a very active participation of the communities.

7.3.8 The extension services which could provide technical advice on a range of livestock management

from rearing, feeding, heath, crossbreeding etc. are more or less non -existent. There are

veterinary units and staff across the province but there is very little information on their outreach

and quality of services. Further most of the livestock owners are either landless or have small

herd and little access to any institutional credit including micro credit on account of multiple

factors including lack of collateral, documentation hassle and most significantly weak presence of

credit institutions in the province. The farmers generally depend on the local traders for credit

which despite being expensive is the only resource available to them.

7.3.9 GoB plans to address the constraint of competitive livestock markets. Presently the livestock

markets are weak, few and have barely any facilities or services. Also there is absence of modern

meat markets and very little value addition is happening in this sector. Non availability of strong

markets impedes supply chain, without which there are little chances of better productivity and

incomes from the sector. To make a beginning, the GoB would evolve an organizational

structure; such as a section 42 company under the company’s Act with the participation of private

sector. This institution can then create a set of market structure with a main market at the centre


and its subsidiary units in the major livestock zones. This company can begin with livestock

transactions and gradually set up a Meat Processing and export unit at a suitable location such as

Gwadar as well as Quetta to begin direct exports. Similarly for extension services; another

technically and commercially viable organization would be created in collaboration with the

private sector for proving quality services including livestock management, health, fodder,

genetic strengthening, insemination etc. for improving the productivity and farmer incomes. This

would gradually be organized on commercial lines.

7.3.10 For the dairy, a dedicated intervention would be undertaken to create community based milk

collection centres linked to private sector processing. This can be Women Focused intervention

given their preponderant involvement in animal hearing at homes. This component too will

require availability of proper advice and support relating to animal health and productivity

enhancement and can be undertaken with support of non- governmental organizations.

Strategy

7.3.11 While there is need for numerous interventions in the sector which can range from institutional

strengthening, research, improvements in extension services; programs for breed improvements,

production of fodders and forages, health management, rangeland development; credit facilities,

insurance and marketing etc. Government would prioritize interventions having universal

application for bigger impact. GoB is confronted with two mega challenges: a) weak availability

of inputs, services and logistics; b) weak livestock markets and lack of value addition for high

end users. In order to address this major supply chain deficiency, GoB will enter into a

partnership with private sector to set up institutional mechanisms which can deliver. These

mechanisms must be pillared on commercial viability and GoB can subsidize costs to increase

their viability.

i. GoB will create a Balochistan Livestock Services Company to provide Livestock Extension

Services relating to animal feed; farm management; animal health, breeding and other

services. A large part of these services could be through an ICT based call service which

provides information to the farmers through mobile phones and gradually evolves a quasi -

commercial model of generating messages on farmers data-base on range of information such

as: a) Livestock management; b) warning systems about contagious diseases; c) availability of

quality medicine; insemination services; feeding components etc. Through this service

company, critical linkages can be developed with other service providers and input producers

such as the veterinary services in the private sector; feed mills; fodder producers;

transportation and many other inputs required by the sector.

ii. GoB will set up a Balochistan Livestock Marketing Company for establishing a central

Livestock Market and Meat Processing Unit at a central location in Balochistan. This is to be a

lean organization with pivot headquarters and processing at initially Quetta and Gwadar and

with sub units at tehsil level. This will primarily procure the animals through tehsil collection

units for processing and value addition. This company can have two specialized units for milk

and meat separately. It can horizontally be connected with other private sector companies

involved in milk and meat processing. This company will be producing Halal beef and mutton

for export purposes. The market pull is expected to gradually correct the supply chain gaps:

a. Develop Livestock Smallholders Groups (like cooperatives for enabling resource and

knowledge pooling)

b. Development of milk production, collection and marketing through a Women focused

program.


iii. Provide dedicated attention to Meat Fattening Farms under public private partnership basis

and promote following:

a. Establishment of commercial fattening farms/feedlot units for sheep, goat and beef cattle

with their own feed mills and slaughter house facilities.

b. Promotion of “Balochistan Nari Master’ developed by the department through

crossbreeding of Australian Drought Master and Indigenous “Bagnari”. This to be

propagated on scientific lines (Embryo transfer technology) and connected to the Meat

Company.

c. Develop Ostrich and Camel Farming in collaboration with farmers in the potential zones

of the province for meat export through the Meat Company.

iv. Undertake Rangeland Development in collaboration with the Forest department and

international partners for re -vegetation and restoration of the rangelands and stock water for

sustainable nourishment of livestock. Introduce fresh drought resistant and fast growing

pasture/fodder species, trees. This will eventually facilitate drought mitigation.

v. Extend Credit Guarantee Scheme for the livestock farmers through Micro Finance and other

Banks. Askari bank, Bank of Punjab and NBP are doing Livestock insurance for their loans

extended to farmers for purchase of cattle. Such initiatives will be beneficial for lenders and

borrowers and must be started in Balochistan.

vi. Strengthen the Livestock Department to be able to evolve a policy framework; create

regulatory mechanism. It needs to undertake institutional strengthening measures for

upgrading its capacity to procure services, partnerships and impact assessments. Develop

linkage with universities for research on livestock production particularly breeding, nutrition

and management.

vii. Establish Livestock city which is under planning with LIEDA in Uthal. Other than

convergence of producers, processors and buyers, this enclave can become a central market

for the livestock by products such as wool, skins, which can then help in creation of local

cottage industry.

viii. Develop Integrated Livestock and Fisheries Farms in collaboration with private sector

Table 7C: Livestock & Rangeland (Rs. In million)

Sr.

No. Strategy FY1,

FY2

FY3,

FY4

FY5, FY6,

FY7

Total Proposed

FA Portion

1 Set- up a Balochistan Livestock Service

Company (PPP) 500 700 900 2,100 1,575

2 Set -up a Balochistan Meat Company

(PPP) 1,000 1,500 1,500 4,000 -

3 Maximization of value added meat

production (PPP) 500 1,000 1,500 3,000 -

4 Community Milk Collection & Marketing 500 1,000 1,500 3,000 -

5 Institutional Development 60 100 150 310 -

6 Rangeland Development& Drought

Mitigation 500 500 2,000 3,000 2,250


Sr.

No. Strategy FY1,

FY2

FY3,

FY4

FY5, FY6,

FY7

Total Proposed

FA Portion

7 Livestock City Development

(LIEDA) 500 500 1,000 2,000 -

8 Development of Integrated

Livestock farm Fisheries 80 310 110 500 375

9 Throw forward of Existing Schemes 93 - - 93 -

Total 3,733 5,610 8,660 18,003 4,200

7.4 Fisheries

7.4.1 GoB recognizes that the fisheries is

not only an important natural resource

for food security, growth & economic

development but also it is a critical

capital asset which can help reduce

poverty of coastal communities both

through generating incomes for them

and providing food security. The

international experience however

shows that this sector’s performance

ultimately hinges on better policy

frameworks and efficient

management systems for sustainable

benefits for the fishermen and the fisheries industry and trade as a whole. Balochistan with its huge

expanse of over 750 km of coastline, having about eight large landing sites and 30 smaller sites, is

endowed with enormous opportunities in the marine fisheries which if exploited adequately can

facilitate great benefits for the fishermen communities other than creating forward linked industry

and associated jobs. The bigger landing sites on the coast are at Jiwani, Pishukan, Gwadar,

Surbandar, Pasni, Ormara, Damb and Gaddani.

7.4.2 Most of the fish produced in Balochistan comes from the marine resources with only a minor catch

from fresh water from the command areas in the east and now possibilities of fresh water fish from

different small dams in the province. As per latest data, the overall marine catch has varied from

125,000 tons to 143,000 tons in last ten years. This is approximately one third of the country’s total

marine catch.21

The catch from Balochistan is much lower than Sindh despite its longer coastline

primarily on account of its much narrower continental shelf (15 to 50 km). Over 70% of

employment in the coastal areas is from this sector, with an estimated 52,000 fishermen associated

with fishing in the provinces.22

The catch is estimated to be worth Rs. 12 billion (US$1.2 billion).

7.4.3 Currently, one of the major interventions in the fisheries sector has been planned with the support

of the International Fund for Agriculture Development (IFAD). GoB and IFAD have lately signed a

US$35.5 million Gwadar- Lasbela Livelihoods Support Project for five years. This is a

comprehensive poverty reduction program which aims to strengthen communities and help them in

21

Vision of Fisheries Sector Balochistan 2013-2020; fisheries Department; GoB 22 Balochistan; Development Issues & Prospects; Part II-Fisheries (2012)


development of the fisheries sector through multiple interventions including community

organization; creation of Community Investment Fund and development of small community

infrastructure for facilitating better incomes for the communities in the target population of the two

districts.

Priority Areas

7.4.4 Most of the issues identified by the provincial Fisheries Department and different sector analysis

reports primarily revolve around the institutional and infrastructure constraints. The overall

fisheries infrastructure is considerably weak across the entire coast especially the fish landing,

handling and the processing and the communication network. Both the major fish harbors at

Gwadar and Pasni have limited infrastructure and services and the Pasni harbor eventually became

non- operational due to silting. The intervention relating to de-silting is under implementation

through a project supported by the Government of Japan. In addition there is on-going work on two

harbors in Gwadar with the support of federal government.

7.4.5 On the infrastructure side, there are important projects under implementation such as establishment

of harbours/Jetties, a Fish Processing Unit, Fishermen’s colonies, etc. Most of these projects are

critical and need to be completed on fast track basis. On the provincial side, these schemes require

Rs. 1,247 million to complete; there are however two harbors co -funded through Federal PSDP and

the Rehabilitation of Pasni Harbor is linked to disbursement of Japanese grant. Fisheries department

to be tasked to prepare a report of these projects (being implemented by different authorities such

as BDA; BCDA; GDA; Pasni Fish Harbor Authority) and to develop an Action Plan for expediting

implementation together with operational plans for following:

a. Establishment of Fishermen’s Training Centre at Gwadar

b. Construction of Fish Landing Jetty & Allied Harbour Facilities at East Bay, Pishukan

being funded through Federal PSDP and co-financed by GoB.

c. Construction of Fish Landing Jetty & Allied Harbour Facilities at West Bay Surbandar

being funded through Federal PSDP and co-financed by GoB.

d. Construction of Jetty and Harbour at Damb through provincial funding

e. Construction of Jetty and Harbour at Jiwani through provincial funding

f. Establishment of Fish Processing Plant at Pasni

7.4.6 Due to limited fish processing facilities; a large portion of the fish catch is taken to Karachi for

processing both for consumption in the country’s market and for export. In addition a significant

proportion of the catch estimated at about 30% is wasted due to non- availability of adequate

processing facilities. There is very little direct export from Balochistan to international markets

except a little quantity which probably goes to Iran.

7.4.7 Other major constraint is related to the quality of the fishing boats and the fishing gear. While there

is an apparent shift towards motorized boats as of the presently available 7,326 marine fishing boats

of various size (20-60 feet); over 70% (5,144) are motorized and 1,831 are mechanized, however

none of these have the modern shipping and fishing equipment and gears such as crates; ice boxes

etc. Most of the fishing vessels are gill netters as trawlers are banned in Balochistan. Many

fishermen do not own boats and hire them from the boat owners on profit sharing arrangements.

The largest boats that are manufactured have a keel length of 35 meters. A 15 meter keel length

boat costs Rs. 2.5 to 3 million to manufacture and has an average life of 20 years. Boat building

industry is therefore one of the potential industry in the area given the demand across the coast.


7.4.8 As per the Fisheries Department’s estimates the overall sustainable marine fish yield in the

province is around 300,000 metric tons as against a total fish stock/bio mass of 600,000 metric tons

available. However the data of actual fish catch available with the department reflects that the catch

has never exceeded 143,000 tons whereas the number of boats have gone up.23

This is indicative of

the fact that while greater effort is going into fishing the catch somewhat remains the same,

confirming the general belief that there is an overfishing issue. This is expected to become clearer

after the survey being conducted by FAO together with Federal Marine Fisheries Department

(MFD) and the Norwegian Agency for Development Cooperation NORAD becomes published. The

FAO however believes that there is an issue of overfishing requiring an adequate institutional

response for better management. It has also been reported that there are considerable possibilities

of oceanic vessels with gill nets indulging in Illegal; Unregistered and Unreported (IUU) fishing of

various kinds, which too requires a better surveillance and reporting system under the existing

regulatory mechanisms.24

7.4.9 On the aquaculture side, there have not been any breakthroughs despite some attempts made by the

Federal Fisheries Board earlier to set up a shrimp hatchery at Jiwani, which did not prove

successful. Despite a vast coastline and comparatively unpolluted waters, coastal aquaculture has

not developed in Balochistan. In order to attract private sector interest in aquaculture, GoB needs to

undertake some pioneering work to remove such bottlenecks as shortage of skilled manpower; non-

availability of credit, and most importantly uncertainty about land tenure.

7.4.10 Inland fisheries constitutes a small portion of Balochistan’s fisheries, around 5.7% of total fish

product in Balochistan and almost all of this comes from open water bodies such as ponds and

dams. The prevalent system for these water bodies is that fishing rights are auctioned for short term

contracts and it is believed that this system is neither equitable nor does this encourage efficient

fishing. Per hectare production of fish is generally low requiring better skills for managing fresh

water fishing.

7.4.11 The fisheries sector together with the livestock sector has remained neglected as far as institutional

credit is concerned. Given the state of poverty and issues of collaterals even in the micro finance

sector, it is unlikely that the situation would change in the short term. Under IFAD supported

“Livelihoods Support Program”, there is a Community Investment Fund (CIF), which is to be

managed by the village organization (VOs) who would act as community banks and provide

subsidized credits to VO borrowers. GoB will expand this type of credit to greater number of

households through the RSPs and other Community organizations through a dedicated program.

Strategy

7.4.12 Government is aware that Balochistan’s coastal region’s prosperity is linked to the economic

activities in and around the coast and fisheries alone can usher higher growth, provided it is

managed better. The two major deficiencies that require attention are the overall institutional and

management weaknesses and the infrastructure gaps that need to be taken-up on priority basis.

i. GoB will undertake institutional strengthening of the Fisheries Department for enabling it to

modify the policy and manage the fisheries more scientifically. As a part of this, the

department would plan a capacity development program at multiple levels including policy

23

Fisheries Department, GoB 24

Balochistan; Development Issues & Prospects; Part II-Fisheries (2012)


frameworks, policy management, regulation and oversight. Also there is need to train

dedicated staff for specialized tasks as managing harbour, fish handling and processing,

surveillance, health & hygiene safeguards.

ii. Encourage participation of women in fisheries sector by formalizing their role in such tasks

as fish processing, packaging, etc. In order to make the fisheries management results based, it

is desirable to support creation of ‘fishermen and women’s cooperatives’ for strengthening

their participation in the decision making and this will give them resources for undertaking

commercially viable ventures.

iii. Expedite completion of the Fishermen’s Training Centre at Surbandar (estimated cost Rs.361

million) and operate this under an Autonomous Board for evolving a well performing

organization. This may be managed with technical support of the Lasbela University’s

Fisheries Department. Additionally, the department would create formal institutional

linkages with the University of Lasbela for research, extension and capacity development of

the fishermen.

iv. Expedite the Infrastructure development through the on-going development schemes both

through GoB funding as well as through Federal PSDP. On the provincial side, these

schemes require an allocation of Rs. 1,247 million to complete

v. Establish a Balochistan Fish Harbor Authority under a private sector led Board and a

qualified CEO from private sector. This will enable the GoB to assign the operations of the

four harbors/jetties under construction to a professional organization having technical

capacities to handle these on commercial basis.

vi. Undertake a physical survey of the major landing stations to examine the gaps in physical

infrastructure, especially the connecting roads from landing sites to the main highway and

major villages and the gaps on account of water sanitation, etc. for evolving a holistic plan

for development of the major infrastructure gaps.

vii. Establish a Boat Building Yard at Gaddani to be operated as commercially viable enterprise

with private sector led Board and management. Undertake a program for modification/ up

gradation of Boats; provision of insulated ice boxes, plastic crates, on board flake ice plant

and life jackets for the fishermen through a transparent criteria.

viii. Undertake projects for aquaculture through technical assistance of International

Organizations already involved in the subject. A beginning has been made through

Norwegian Embassy which has supported plantation of mangroves in certain selected blocks

on the coastline. This will facilitate growth of shrimp, crab and fish breeding in this region. A

similar expanded intervention may be evolved through GoB funding, to be implemented

through the IUCN in collaboration with the Fisheries and the Forest Department.

ix. Evolve a Credit Guarantee Scheme in collaboration with State Bank of Pakistan for

facilitating greater credit disbursement in Balochistan. For the fisheries sector, this could be

disbursed through scheduled banks and also Micro Finance Banks/Institutions

x. Evolve planning for fish exports direct from the Gwadar to the Gulf region (fresh fish

by air) and to the rest of the world (frozen by sea). This will hinge on developing an

efficient and commercially viable harbour management company for managing

different harbours efficiently.


Table 7D: Fisheries Development (Rs. in million)

Sr.

No

Strategy FY1,

FY2

FY3,

FY4

FY5, Fy6,

FY7

Total Proposed FA

Portion

1 Capacity Development of

Fisheries Dept. 50 80 120 250 188

2 Modification/Up gradation of

Boats 800 1,200 2,000 4,000 -

3

Fish Harbor Authority

Operational Expenditure of 4

New Harbors

300 400 600 1,300 -

4 Endowment for Fisheries

Training Centre Gwadar 200 300 200 700 -

5 Development of Aquaculture 100 200 300 600 450

6 Operationalizing Fish Processing

Unit Pasni 400 600 1,000 2,000 -

7

Coastal Infrastructure Dev in

collaboration with Fishermen's

Organizations

800 1,200 2,000 4,000 3,000

8 Counterpart Funds for IFAD

Supported Program 166 - - 166 -


Schemes 1,247 - - 1,247 -

Total 4,063 3,980 6,220 14,263 3,638

7.5 Industry and Trade

7.5.1 Manufacturing sector accounted for about 9.2% of Balochistan’s GPP in the mid 2000’s – down

from 9.4% in 1991. In 2005, manufacturing was the fourth largest sector in the provincial economy

behind agriculture (29.3% of GPP), public administration (12.7%), and trade (17.2%). Large scale

manufacturing’s share of provincial manufacturing value added (MVA) was about 79% in 2005

up from 70.5% in 1991. The large scale manufacturing sector has grown significantly, more rapidly

in recent years than the small sector. Despite this the share of Balochistan’ s large scale

manufacturing sector in national MVA has stagnated at about 2% during 2000 to 2009. The share of

the small scale manufacturing sector of Balochistan in national SSM is about 1%.25

25

Balochistan; Gross Provincial Product; (2012) World Bank


7.5.2 Wholesale and retail trade accounts for roughly

a quarter of Balochistan’s GPP. This share has

tended to decline marginally over the 2006 to

2011 period. During this period, growth of trade

sector value added has fluctuated widely – with

a high of 10.3% in 2008 and negative and

stagnant growth in 2009 and 2011. Trade sector

value added of Balochistan accounts for about

8% of national trade sector value added.

7.5.3 Industry traditionally has been a neglected policy

concern and public investment and support to

manufacturing – large and small scale and

slaughtering – mining, construction and transport

sub-sectors have been typically small. There are

clusters of manufacturing industry in several

locations; Quetta, Jafferabad, Lasbela, etc.

However according to the 2006 Census of

Manufacturing Industry, the share of Balochistan

in the total number of manufacturing industry is

extremely small.

7.5.4 In Lasbela, about 201 manufacturing units are in operation in all the estates falling under the

jurisdiction of Lasbela Industrial Estate Development Authority (LIEDA). LIEDA is presently

operating 5 estates in Lasbela and of these the two most colonized are the Hub Industrial Estate and

Marble City Gaddani. About 36 listed companies of Karachi Stock Exchange are located in

Industrial Estate of Lasbela. The production of these industries not only fulfills the domestic

demand of these products but also partakes in exports and contributes to foreign exchange. The

number of workers employed in factories dropped from 14,789 in 1993-94 to 13,233 in 1996. The

2010 data for labor is 6,88026

. The drop in factory work force is probably on account of greater use

of modern technology.

Table 7.8: Industry in the Lasbela Industrial Estate Development Authority

Estates Established In Operation Under

Revival Closed

Hub Industrial Estate 226 135 17 74

Winder Industrial Estate 18 8 1 9

Uthal Industrial Estate 5 1 4

Marble City Gaddani 55 55

SIZ Winder 4 2 1 1

Total 308 201 19 88

Source: Gob; LIEDA Brief

7.5.5 Balochistan’s ship-breaking yard at Gaddani is one of the world’s largest ship breaking operations.

Gaddani currently has an annual capacity of breaking over a hundred ships of all sizes including

super tankers and large cargo ships. The yard provides considerable amount of steel which is used

in other industry. There are 314 plots of which 132 are developed and presently there are 5,000

people employed in the ship breaking industry.

26

District Development Profile Lasbela; 2011 UNICEF, P & D Department Government of Balochistan

Table 7.7: Balochistan MVA Growth

(at constant factor cost)

Years Total MVA Growth

2000/01 11.02

2001/02 23.75

2002/03 14.51

2003/04 21.13

2004/05 24.86

2005/06 19.16

2006/07 7.04

2007/08 6.28

2008/09 -3.45

2009/10 4.5

2010/11 3.5

AV 2001-2006 19.07

AV 2007-2011 4.37 Source World Bank (2012) Vol. II. Table 3


7.5.6 The newly developed Gwadar Industrial Estate (GIE) is situated a little outside the Gwadar city

along the Mekran Coastal Highway. It comprises of 2,000 industrial plots, of which 1,100 acres

have already been allotted. The infrastructure activities are in final stage of completion. The estate

required availability of fresh water which is expected to be made available after the recent approval

of water pipeline for Gwadar. GIE’s viability ultimately hinges on the success of Gwadar port. In

Quetta, there are a total of 117 industrial units with 29 different types of industry. There are more

than 2,500 persons employed in these units.27

7.5.7 The existing enterprises in Balochistan are

small and cater to the needs of a small, low

income clientele. These trading enterprises are

usually family business often relying on

formally unpaid labor and with weak links

with enterprises along its supply chain. Trade

is the second largest recipient of bank credit

(after manufacturing outstanding in June

2012). Moreover all trade sector credit is

concentrated in Quetta and Jafferabad which

accounted for about 95% of outstanding

Balochistan’s trade sector bank credit in June

2012. Quetta still accounts for more than half

of private sector credit outstanding to

Balochistan’s trade sector. Lack of access to

finance is a crucial constraint on the growth of

the trade sector. Amongst other barriers, the

non-availability of suitable collateral, credit

history and use of English language for bank documentation and transactions, are the major ones.

All these require adequate redress for improving the credit availability in the province.

7.5.8Strengthening linkages between trading and manufacturing enterprises is important as this can be a

source of flow of both finance and technology and lead to the growth of the enterprises. There are

very few examples of trading enterprises “graduating” from minor to medium sized levels in

Balochistan (starting as one man businesses and developing into a large retailer network) due to

weak inter-enterprise vertical and horizontal linkage and absence of a reliable market information

system which can allow enterprises to track change in market demand, production technologies etc.

Priority Areas

7.5.9Government recognizes that without availability of efficient infrastructure, the manufacturing

industries would be unable to take advantage of the natural resource endowments. The experience

of Hub Industrial Estate (HIE) shows clearly, that a conscious public investment in infrastructure

including water and electricity enabled the HIE to take off. The physical connectivity with Karachi

facilitated supply of the managerial and technical manpower together with technology. LIEDA is

already working on Phase II projects for expanding HIE as well as the Marble City. It has planned

water supply schemes for additional water as well as for a power project. GoB plans to take up the

request for sanctioning of gas for the power project as well as for the industry with the GoP as the

gas used in Balochistan is only 2% of the amount produced in the province. Similarly the

development of better connectivity in the province especially rail link connecting Gwadar to the

27

District Development Profile Quetta; 2011 UNICEF, P & D Department Government of Balochistan

Table 7.9: District- Wise Trade Sector Credit

in Balochistan June 2012 Vol Rs. ‘000 %

Gwadar 2,352 0.15

Jafferabad 610,120 41.46

Kech 19,912 1.35

Khuzdar 9,992 0.68

Killa Abdullah 2 0.00

Lasbela 29 0.00

Loralai 3,362 0.23

Nasirabad 7,637 0.50

Pishin 9,209 0.62

Quetta 776,344 52.76

Sibi 7,221 0.49

Other 24,532 1.66

Total Balochistan 1,470,712



eastern, western and northern region will provide boost to mineral processing as well as other

industry linked with local raw material

7.5.10 For wider growth impacts, industry having backward linkages with raw material within Balochistan

must be prioritized. Further focus should be on creating linkages with markets surrounding

Balochistan, in Sindh, Punjab and KPK, and also in gulf area (through facilitating port linkages and

cross border facilitation programs). In 2004 there was discussion for setting –up, Pak-Iran Common

Border Market for controlling illegal trade and promoting tax harmonization. Iran has been

operating common border markets with Turkey, Azerbaijan and Turkmenistan. Common border

market projects could be solicited with the Government of Oman in the Gwadar area.

7.5.11 Balochistan’s financial underdevelopment reflected in the absence of institutional finance at the

long end of the market (no bank lends long, there are almost no venture capital funds, lease

financing arrangements, new bond/ sukook or share market issues anywhere in Balochistan). In

Balochistan the outstanding credit extended to the manufacturing sector as a proportion of total

credit outstanding by banks averaged about 15% during 2006 – 2012 (Table 7.10). Weak financial

sector is underscored by the absence of the non- banking financial intermediaries (NBFC) sector.

The collapse of the DFIs especially that of IDBP and BEL has hit Balochistan’s manufacturing

sector harder than any other province. Balochistan’s manufacturing sector is also in need of BMR

(balancing, modernization and restructuring) investment today together with green field projects.

Table 7.10: Private Sector Credit Outstanding to Manufacturing

2008-2012 (Rs. in billion)

Year Private Sector Credit

Outstanding to

Manufacturing

Total Private and

Personal Credit

Outstanding

Percentage

2008 1.59 12.78 12.44

2009 1.69 12.80 13.20

2010 2.19 10.41 21.03

2011 1.44 10.45 13.77

2012 1.74 9.71 17.91


7.5.12 The cost of doing business in Balochistan is higher than almost anywhere in Pakistan. Quetta ranks

12th among 13 Pakistan cities on the basis of the overall index constructed by the World Bank. It is

particularly cumbersome, time consuming and expensive to enforce contracts, register property,

obtain construction permits and organize trade in the case of Quetta businesses (on the other hand

starting a new business and paying taxes is relatively easy in Quetta.) This indicates the need for a

major overhaul of the public administrative structure regulating business operations. Clearly there

are too many regulatory tiers of authority that can be eliminated or intuitionally subsumed within

the system for better business operations in the region.

7.5.13 Industrial strategy must also concentrate on promoting enterprise consolidation and horizontal and

vertical linkages. According to the latest census (2011) 90% of the manufacturing enterprises in

Balochistan employ less than 4 persons each. Many enterprises are effectively one man family

businesses (relying on unpaid labor). Only 13% of Balochistan’s enterprises are in the

manufacturing sector (as against 20% in the rest of Pakistan). This also reflects the lower level of

provincial economic integration. Manufacturing sector development is also limited by Balochistan’s

relatively low level labor participation rate (estimated at 27% in 2011). Moreover labor productivity

is lower in Balochistan than any other province, it is just 66% of the average labor productivity of


Sindh. This underlines the need for public support for rapid upgrade of both, on the job and off the

job employee trainings.

Strategy

7.5.14 GoB plans to promote industry which can allow Balochistan to exploit her natural resource

potential – fruits, fish, wool, leather, meat, minerals (especially coal and copper) and petroleum

refining. Also the focus is developing value chain in the products that are presently produced in raw

form and whose value addition takes place outside Balochistan. Public support (including

subsidizations of inputs and services) would thus focus on:

i. Facilitating investment partnerships (between public, private and foreign investors) to

overcome the constraints in the expansion of industrial growth. For this, GoB would undertake

joint ventures with private sector with its equity participation and encourage foreign investors

specially investors from the Balochistani expatriates.

ii. GoB will create special Equity Funds for supporting manufacturing sector projects that are

well integrated with the provincial resource base and can generate growth spread effects

within a specified region linked up with a growth pole outside Balochistan and can provide a

basis for continuous improvements in the skill level and productivity of the Balochistan labor.

Grant of mining exploration and production contracts to major multinationals must also

include agreements on processing a certain proportion of the extracted minerals in

Balochistan, preferably as near the mining site as practicable.

iii. Reviving long term investment for manufacturing through an agreement with SBP for

evolving project evaluation and monitoring capability in the Financial Institutions and an

associated expansion of long term manufacturing sector financing. Also floatation of bonds on

the KSE and the Gulf stock markets by the provincial government for financing mineral

processing and petroleum refining projects in Balochistan.

iv. Support investments in the infrastructure especially power; water, transportation and storages

through prioritization. LIEDA’s planned investments including those for expanding Industrial

estates be supported

v. Rehabilitate existing Industrial Estates and establish new Industrial Estates under SEZ Act.

vi. Strengthen organizational capability of the Industries & Commerce department in policy and

regulatory mechanisms. Revitalize the Balochistan Small Industries Corporation by converting

it into a Small Enterprise Development & Finance Institution in partnership with private sector

for providing project development and financing support to small enterprise; service industry

as well as trading units.

Table 7E: Industry & Trade (Rs. in million)

Sr.

No.

Strategy FY1,

FY2

FY3,

FY4

FY5, FY6,

FY7

Total Proposed FA

Portion

1 Improving Regulatory Framework

for Industrial Growth and Safety 81 50 85 216 164

2 Equity Funds for Investing into

Strategic Industry 400 1,000 1,500 2,900 -

3

Improving Infrastructure of

Existing Estates and New Estates

under SEZ

200 800 400 1,400 -


Sr.

No.

Strategy FY1,

FY2

FY3,

FY4

FY5, FY6,

FY7

Total Proposed FA

Portion

4

LIEDA Requirements for

Infrastructure and Gaddani Ship

Steel & Allied Industrial Park

400 400 200 1,000 -


Schemes 374 - - 374 -

Total 1,455 2,250 2,185 5,890 164


7.6 Mining and Natural Resources Sector

7.6.1 Balochistan is one of the richest

provinces in Pakistan, in terms of

minerals with large reserves of copper,

gold, iron ore, chromite, marble and

coal, amongst others. Unfortunately,

most of these deposits remain largely

un-exploited owing to various reasons,

including law & order situation. The

mining sector holds tremendous

promise for creating much needed

resources for the development of the

province as well as creation of jobs for

the local population, in not only the

mining sector, but also in the spin- off and downstream processing industry such as cement, marble

value addition, steel, etc. The only active metal mine of significant scale is the copper-gold mine at

Saindak in Chaghai district operated by - MCC Resources Development (Pvt.) Limited (MRDL). At

least two more known venues with significant potential for large-scale metal mining are Reko Diq

(Gold and Copper reserves) in Chaghai district and Duddar (Lead and Zinc) in Lasbela district.

Priority Areas

7.6.2 GoB is cognizant of the structural weaknesses which impede the exploitation of mineral resources,

such as lack of adequate infrastructure, security related challenges, difficult terrain, significant gaps

in knowledge and skills and underdeveloped regulatory framework governing the mining sector.

GoB intends to address these under this strategy, so as to unleash the great potential of the mining

sector and translate it into the prosperity of the people of the province.

7.6.3 The provincial government is responsible for regulation of all minerals except for Oil and Gas.

After 18th Amendment, there is now a shared ownership of even Oil and Gas resources between the

federal government and the relevant province. The existing regulatory framework is based on the

Balochistan Mineral Rules, 2002. This framework and underlying laws need to be updated to attract

private sector investment in the mining sector. The Balochistan Mineral Rules (BMR), 2002, were

introduced, following the provincial implementation of the National Mineral Policy, 1995. Along

with provisions with regards to mineral titles, BMR 2002 also covers the amount of royalty payable

on minerals, per metric ton. The rate of royalty set in 2002, is considered low, especially

considering the rupee devaluation, ever since, and proposed to be revised keeping in view the

current market as well as conditions prevailing in the province. A modern and progressive


regulatory framework is imperative to ensure effective and expeditious development of the true

potential of the mineral resources of the province.

Saindak Copper / Gold Project

7.6.4 The Saindak Copper-Gold Mine is located near Saindak town in Chaghai district. These deposits

were discovered back in 1970s in collaboration with a Chinese engineering firm. The Saindak

Copper-Gold Project was set up by Saindak Metals Limited (SML), a company fully owned by the

Government of Pakistan. Pakistan and China signed a formal contract worth $350 million for

development of Saindak Copper-Gold mine. The mine was leased for a 10 year period to MCC

Resources Development (Pvt.) Limited (MRDL). As per the lease agreement, 50% of revenues

from the mine go to MCC, 48% go to the GoP, while 2% go to the GoB. The lease between SML

and MRDL expired in October 2012, and has now been extended for another 5 year period, till

October, 2017. As per Aghaz-e-Haqooq-e-Balochistan (AHB) package, agreed between the GoP

and GoB, the ownership of the Saindak Project would get transferred to the GoB on expiry of the

initial 10 year lease contract, in October, 2012. This transfer, however, has not taken place as yet.

7.6.5 SML’s revenue for the year ended

June 30, 2012, amounted to Rs. 4.8

billion. Such revenues will accrue

to the GoB, once the transfer of the

project is affected in accordance

with AHB. These funds can be

strategically invested in the

mineral sector, especially for

development of Reko Diq copper

mines. GoB expects that in

accordance with the Federal

Government’s commitment in

terms of AHB, this project will

shortly be transferred to GoB.

7.6.6 The Saindak mine has total

estimated reserves of 412 million

tons, of which an estimated 1.69

million tons are mineable. Saindak has the capacity of producing roughly 15,800 tons of copper

blister, 1.47 tons of gold and 2.76 tons of silver, annually. At present, MMDD has limited

information about the progress of development of Saindak mines, including annual production,

projected recoverable reserves of copper and gold. Going forward, MMDD will develop a

framework for more effective information collection and monitoring to protect the interest of the

province.

Reko Diq

7.6.7 Reko Diq is a small town in Chaghi district, 70 km north-west of Nokundi, close to Pakistan's

border with Iran and Afghanistan. The area is located in Tethyan belt that stretches all the way from

Turkey and Iran into Pakistan. Reko Diq has an estimated 56-year life span and has one of the

largest reserves of copper in the world. The deposit at Reko Diq is large low grade copper

porphyry, with total mineral resources of 5.9 billion tons of ore with an average copper grade of

0.41% and gold grade of 0.22 g/ton. From this, the economically mineable portion of the deposit

http://en.wikipedia.org/wiki/Government_of_Balochistan

http://en.wikipedia.org/wiki/Chagai_District

http://en.wikipedia.org/wiki/Naukundi

http://en.wikipedia.org/wiki/Iran

http://en.wikipedia.org/wiki/Afghanistan


has been calculated at 2.2 billion tons, with an annual production estimated at 200,000 tons of

copper and 250,000 ounces of gold, from 600,000 tons of concentrate.28

7.6.8 Reko Diq deposits are considered extremely valuable, promising substantial resources in terms of

revenues from royalty as well as huge return on investment on development of mining and related

projects by the provincial government, which will become available for development of the

province, once the mining commences on commercial scale. GoB intends to work proactively to

develop a plan for development of Reko Diq reserves in the best interest of the Province.

Coal

7.6.9 Coal mining in Balochistan started on

small scale before independence, in

Khost-Shahrig-Harnai area, and has been

increasing with time. Coalfields are

generally located in remote and

mountainous areas where infrastructure

is either minimal or absent. The

province has significant reserves of coal,

as shown in the table below. The coal

reserves here, have a high content of

sulphur and tar, which reduces its utility

for industry such as Steel, as once this

coal is burnt, it emits less coke, which is

required for hot metal manufacturing. Consequently, the present use of such coal mined in

Balochistan is largely confined to brick kilns and some blending with imported coal in the cement

industry. Establishment of a coal washing plant with upgrade is quality and enhances its use for

especially power generation.

7.6.10 The thickness of coal seams ranges from 0.3

to 2.3 meters. Balochistan coal is classified as

sub-bituminous to bituminous and the heating

value ranges from 9,637 to 15,499 Btu/lb. It

has low ash and high sulphur content, and can

ideally be used for thermal power generation

and as industrial fuel (cheaper source as

compared with imported furnace oil). Coal

reserves in Khost, Sharig and Harnai, the

largest reported reserves in Balochistan, have

low moisture content, ranging between 2%

and 11%, whilst sulphur content varies

between 3.5% and 9.5%.

28

Board of Investment, Government of Pakistan

Table 7.11: Coal Reported Reserves (in million

tons)

Location Reported Reserves

Mach Abegum 23

Khost Sharigh Harnai 76

Sorange Degari Sinjidi 50

Duki 51

Pir Ismail Ziarat 12

Chamalang 56

Total 268

Source: MMDD Balochistan


Table 7.12: Production of Coal by Field (in Tons)

Field 2007-08 2008-09 2009-10 2010-11

Sor Range 117,681 115,802 101,715 101,989

Degari 43,175 41,632 36,419 22,305

Sharigh 184,989 140,370 169,793 193,671

Sinjidi 120,515 117,118 114,020 73,614

Mach 293,340 236,274 185,574 131,158

Harnai-Khost-Nasaka-Zardalu 93,931 103,358 102,702 112,024

Duki 564,944 469,524 226,325 211,941

Pir Ismail Ziarat 318,166 294,567 176,808 156,340

Abegum 11,697 17,623 6,623 28,839

Barkhan/Chamalang 520,185 521,041 383,034 310,178

Sub-Total 2,268,623 2,057,309 1,503,013 1,342,059

Source: Pakistan Energy Yearbook, 2011

Iron Ore

7.6.11 Recent geo-scientific studies have established existence of about 200 million tons of iron ore, at

Dilband, Mastung, ranging in iron content from 40% to 50%. The deposits have favorable

mineralogical composition and are located near existing infrastructure. However, Pakistan Steel

Mills uses only a small proportion of iron ore (only around 10%, which is mixed with the imported

iron ore) from Balochistan due to low level of FE content. Similarly, Tuwairqi Steel Mills, the

newly established DRI plant is also expected to mainly use the imported iron ore. At present,

certain quantities of iron ore are being exported, but reliable data of exports is not available.

7.6.12 Although procuring ore from

Balochistan would turn out to be

significantly cheaper than imported

ore, due to lower FE / iron content,

the steel industry uses imported iron

ore. A de-sulphurisation plant is

required, which will reduce the

sulphur content from the ore mined

in Balochistan, and thus make the

iron ore more suitable for steel

making. Also, post de-sulphurisation,

the ore is expected to have a higher

FE content, expected to be around 62%, which will make it an attractive commodity with huge

export potential. Mining for iron ore is predominantly done via applying primitive mining

techniques with higher wastage and other inefficiencies.

7.6.13 Due to a weak monitoring mechanism, significant production data goes unaccounted for, thus

resulting in lost royalty. For example, revenue earned from the production of iron ore in FY 06 / 07

was Rs. 75,000, jumped to Rs. 961,000 in FY 07 / 08 and further increased to Rs. 11,800,000 in FY

09 / 10. In the absence of the availability of annual production data of iron ore, the GoB intends to

introduce a monitoring mechanism, whereby per annum production data, broken down by field /

location, is obtained and monitored by MMDD.

Table 7.13: Iron Ore Reserves (in million tons)

Location District Reported Reserves

Pachin Koh Chaghi 45

Chigendik Chaghi 5

Chilghazi Chaghi 35

Dilband Mastung 200

Total 285

Source: MMDD, Balochistan


Marble

7.6.14 Marble is also another very important

mineral resource of the province. As per

MMDD, large reserves of good quality

marble are present in Chaghi, Zardkan,

Siah-Chang, Jhulli, Patkok, Maskichah,

Zeh, Chilgazi and Buttak. Onyx reserves

are present in Chaghi, Bolan, Lasbela

and Khuzdar. The marble from

Balochistan is of superior quality and is

used in the local construction industry.

With improved technology and better

marketing practices, total export of

marble and onyx is projected to increase

from US$7 million to US$ 40

million.29

Given the marble zone’s close

proximity to Karachi and Gwadar port,

the province has an edge over marble mines in Khyber Pakhtunkhwa.

7.6.15China is the largest importer of marble and granite in the raw form. These are processed in China

and exported to various countries at higher prices. Export revenue is expected to go up significantly

if emphasis is placed on value-added services, such as high quality cutting and polishing, in order to

enable Balochistan to export finished marble products.

Chromite

7.6.16 Chromite is the source of chromium used commercially, and as an alloying element. Balochistan is

endowed with huge reserves of chromite. The first discovery was made at Muslim Bagh and

Khanozai in district Killa Saifullah, in 1901. Reserves have also been found in Zhob, Chaghi,

Kharan, Khuzdar and Lasbela districts. The most important among these are the Muslim Bagh

deposits, Kabbar (Wadh), Pat Nadi and Sonaro deposits in Khuzdar district.

7.6.17 Chromite mining has not been undertaken systematically and is quite disorganized. It is mined by

both open pit and underground methods. In Muslim Bagh, Ras Koh Range and Wadh areas,

chromite is mostly mined by open pit method. Use of donkeys for hauling the ore from

underground is still widely practiced. The ore mined is transported by trucks to Karachi where it is

crushed and packed in bags for export. China is one of the largest importers of chromite from

Balochistan. The ore concentrate is used to make ferrochrome, which is in turn used for steel

making. Chrome is also used in the production of chromic acid by chemical industries and in the

creation of refractory bricks.

Lead / Zinc

7.6.18 An estimated 27 million tons of lead and zinc deposits

are present in Balochistan, in the Khuzdar and Lasbela

districts. Lead-zinc ore is present in Duddar, Shekran,

Malikhorn, Gunga, Surmai and Mithi areas, with the

single largest reserve of the mineral found in Duddar.

29

MMDD website


The Duddar Project is the first nonferrous metal mine adopting underground mining technology in

Pakistan. The mine has been leased to MCC Resources Development (Pvt.) Limited (MRDL), of

China, in December 2003. The GoP entered into a profit sharing agreement with MRDL and the

Pakistan Mineral Development Corporation, with an agreed profit sharing ratio of 75% and 25%,

respectively. The lease period provided within the agreement was ten years, apart from the

construction period of two years. The GoB has obtained 12.5% of the 25% share of PMDC profit in

the project through the Balochistan Development Authority. In 2011, the output of lead and zinc

ore reached 2,268 tons and 19,457 tons, respectively30

.

7.6.19 Lead is used in storage batteries, cable covering, lead pipe manufacturing, pigments, ammunition,

bearing metals, and casting of a few alloys. On the other hand, zinc is used for the manufacture of

galvanized iron products, like G.I. sheets and water pipes, to protect the metal against rusting. It is

also used in casting alloys like brass, bronze, German silver, etc. Zinc oxide is also used in the

rubber industry.

Limestone

7.6.20 Limestone is a major sedimentary deposit, and

Balochistan has vast resources of the mineral,

extending from the coastal region near Karachi to

as far north as Chaghi and Zhob. Several hundred

meters thick layers of limestone occur in the

Chiltan Formation in Quetta. In particular, the

Harnai, Sor Range, and Spintangi areas have

large reserves. Limestone is primarily mined via

open pit method. It is the main raw material for

cement, and is also used in the manufacture of

bleaching powder, glass, soaps, paper, paints and lime. Often, limestone is painted on barks of trees

to counter pests and termite attacks. The mineral is also widely used to aerate soil and treat salinity.

Revenue Receipts

7.6.21 Revenue is generated via various sources, for example the collection of application fee, annual rent

and royalty by the Directorate General Mines and Mineral, Balochistan. The fees, annual rent and

royalties are charged according to Balochistan Mineral Rules 2002. A significant increase has been

observed in revenue receipts in the past four years:

Table 7.14: Revenue Receipts from Minerals (2008-09 to 2011-12) (Rs. in million)

Sr.

No Year Saindak Chamalang Duddar

Other

Minerals Total

(Copper / Gold) (Coal) (Lead/ Zinc)

1 2008-09 199.36 26.58 --- 274.52 500.46

2 2009-10 238.25 23.72 8.34 354.05 624.36

3 2010-11 1,119.24 20.48 120 448.3 1,708.02

4 2011-12 2,484.67 65.38 119.55 555.5 3,225.10

Source: MMDD, Balochistan

30

MRDL Annual Report, 2011


7.6.22 However, despite the year on year increase in revenue, there is significant room for growth in

receipts, both, in terms of rationalization of rate of royalty charged on minerals as well potential

increase in production. At present, the rate of royalty in Balochistan is much lower than what is

charged in other provinces. For example, royalty on coal, per the Mines & Mineral Development

Department, Government of Sindh, is charged at a rate of 7.5% on the value, subject to a minimum

of Rs.75 per ton, as compared with Rs. 20 per ton, in Balochistan. As an incentive for investors to

invest and work in Balochistan, GoB intends to rationalize and enhance the rates of royalty on a

gradual basis.

Strategy

i. GoB will set-up a high level Mineral Development Board (MDB) under the chairmanship of Chief

Minister Balochistan, to act as the main decision taking body for providing leadership, strategic

direction and oversight for expeditious development of mining sector. The board will include

combination of elected representatives, bureaucrats and eminent persons from private sector.

Amongst other things, this will help in improving coordination between the government

departments, within the province as well as between the provincial and federal government, for

executing provincial mineral strategy. A ‘single-window’ facilitation center will also be set-up for

investor facilitation on a fast-track basis, within the MDB.

ii. GoB plans to establish an Oil & Gas Development Department (OGDD) to oversee provincial

O&G resources and expeditious development of the sector. Following the 18th Amendment, there is

now shared ownership of Oil & Gas (O&G) resources, between the federal and provincial

governments. The OGDD will be responsible for attracting private sector investment in the O&G

sector, providing assistance and guidance to permit holders for carrying out exploration and

extraction activities, and representing the province at federal and international level. The OGDD

will be strengthened by hiring O&G sector experts for regulatory and contract administration

matters, both from a legal and technical viewpoint.

iii. Undertake Mining Development Strategy for development of mineral sector, including a strategy

for expeditious development of large copper deposits at Reko Diq will be developed, with the

assistance of qualified international mining experts.

iv. Undertake additional studies in coordination with GSP to improve availability of geological data

required by investors and facilitate availability of updated, accurate and relevant data on various

mineral deposits in the province.

v. Evolve a dedicated capacity and institutional development program for the MMDD to enable them

in realizing huge potential of the province in the mining sector. This will entail recruitment of

following specialists:

a. A governance specialist, to develop the organization structure of the department on

modern lines.

b. Technical experts / Specialists who can advise on development of specific strategies for

development of major mineral deposits in the province, including copper, iron ore, coal,

zinc and marble.

c. Training of existing staff, after a proper assessment of their training needs.


d. 25 individuals from the local population to be sent on short-term training.

e. 10 individuals need to be trained and commissioned within the MMDD, working within

the policy making / regulatory realm.

f. 10 individuals need to be commissioned, responsible for procurement, covering the legal,

regulatory and technical aspects of contract administration.

vi. MMDD will develop special security plan and make special security arrangements for the areas

where major mineral deposits reside, in consultation with investors and security experts to provide

reasonable comfort to the existing and potential investors.

vii. Develop a skill development strategy as part of the mineral development strategy, for development

of skilled workforce for mineral sector from the local population, such as geologists, mining

engineers and geoscientists, amongst others. This will help in making available necessary resources

for employment in major mines and ancillary processing industry. This in turn will enhance

efficiency; reduce wastages in the mining process and increase recovery of mineral resources.

viii. Prepare infrastructure development plans as part of Mineral Sector Strategy to ensure availability of

adequate roads, bridges, telecommunication network, power supply and water in the mineral

enclaves including Reko Diq.

ix. Mining Sector Strategy will also entail a plan to enhance mining technology as well as value

addition in different mining products through establishment of related processing industry, so that

minerals are processed into finished or semi-finished products. At present, most of the minerals are

extracted in raw form in the province, with very little value addition in the provincial economy.

x. MMDD to develop mechanisms for collection of data on various mines and mineral activities on a

periodic basis, including data on production so as to ensure completeness of royalty collection and

effective monitoring of mining activity in the province.

xi. MMDD will consider outsourcing the monitoring of mineral production and royalty collection,

through competitive bidding in order to bring efficiency in these activities.

xii. Rates of royalty will be rationalized, keeping in view the current market conditions in Balochistan.

However, keeping in view the challenges of working in Balochistan, the overall rates will be kept

at a discount compared to the rates in other provinces to enable higher level of investment.

xiii. MMDD would hire international mineral regulatory experts for updating the BMR 2002, to reflect

developments in the mining sector since 2002, including legal, fiscal and environmental

developments which can facilitate expeditious development of this sector via greater private sector

investment in an efficient and transparent manner.

xiv. GoB will approach the federal government at highest level, for expeditious transfer of Saindak

Metals Limited, from the GoP to the GoB as part of federal government’s commitment under

Aghaz-e-Huqooq-e-Balochistan.

xv. MMDD will engage suitable consultants for developing appropriate policies on health, safety &

environment for various mining operations. Current mining practices pose significant risks and

hazard to health of workers, as mining operations of most mines are reportedly not in compliance

with acceptable mining practices.


xvi. Dedicated economic zones to be established, under the recently evolved Special Economic Zones

enactment at federal level to develop upstream industry. These may be set up in Muslimbagh,

Quetta, Gaddani, Mastung, Hub, Chaghi, Gwadar and Dilband, where significant development

activity in mining exists.

xvii. Engage international consultants for development of strategy for exploitation of Reko Diq reserves.

GoB has allocated Rs.8 billion for investment in Reko Diq. Bankable feasibility will be undertaken

for undertaking development of mines as well as refining facilities.

xviii. Introduce modern mining techniques vogue internationally such as wire cutters for efficient mining

of marble. The current system of blasting results in wastage of around 70% of the stone. In

addition, introduce imported monolama and Diabreton gang-saw machines for higher cutting

speeds with greater block loading capacity. Exemption on import duty of such machines can be

offered, to promote use of modern industrial equipment.

xix. Following projects will be undertaken in partnership with private sector with GoB holding

minority stake (20% to 40%); subsequent to bankable feasibilities:

a. A Ferro chrome Plant at Muslim Bagh. (Ferrochrome plant, with a capacity to produce 50,000

tons per annum, will require an estimated investment of Rs 1.6 billion).

b. De-sulphurisation Plant to be set-up in Dilband, to reduce the sulfur content and thus resulting

in higher FE content, in order to make it useable for steel making. (Estimated investment is

Rs.160 million).

c. A Coal Washing Plant at Shahrig followed by at least 4 other sites. (Estimated Investment for

a plant with a capacity to purify 2,000 tons of coal per day will require Rs.28 million).

d. A Mini Steel Mill at Mastung to utilize the Chaghi and Dilband iron ore reserves. Estimated

investment for a steel mill with a production capacity of 0.5 million tons per annum will

roughly cost an estimated USD 52 million.

Table 7F: Minerals & Natural Resource Development (Rs. in million)

Sr,

No

Strategy FY1,

FY2

FY3,

FY4

FY5,

FY6, FY7

Total Proposed

FA Portion

1 Establish an Oil & Gas

Development Department 158 139 117 414 311

2 Mining Development Strategy 60 - - 60 45

3 Institutional development for

MMD 150 150 100 400 300

4 Skill Development for local

Population 300 400 500 1,200 900

5 Hiring Regulatory and other

Environment Experts 100 100 100 300 225

6 Mines Infrastructure

Development Fund 3,000 6,000 11,000 20,000 -

7 Subsidy on modern mining

techniques & machinery 200 200 200 600 -

8 Reko Diq Development 1,000 1,000 3,000 5,000 3,750

9 Equity for Ferrochrome Plant 1,000 1,000 2,000 4,000 -


Sr,

No

Strategy FY1,

FY2

FY3,

FY4

FY5,

FY6, FY7

Total Proposed

FA Portion

10 Equity for De-sulphurisation

Plant 200 200 - 400 -

11 Equity for 5 Coal washing

Plants 350 - - 350 -

12 Equity for a mini Steel Mill 1,500 1,750 - 3,250

13 Throw Forward Existing

Schemes 280 - - 280 -

Total 8,298 10,939 17,017 36,254 5,531

7.7 Housing

7.1.1 Housing is one of the major pillars of macro economy and it carries tremendous amount of

backward linkages with industry and is known to have multiplier impact on growth and job

creation. The overall situation of housing across Pakistan has been dismal in many ways. According

to the 1998 census, the total number of housing units throughout the country was 19.3 million out

of which 67.7% was in rural areas and 32.3% in urban areas. The estimated housing backlog as this

census was 4.3 million units. The annual additional requirement was estimated at 570,000 housing

units and the production was projected at approximately 300,000 units with a recurring backlog of

270,000 units annually. In the context of Balochistan the dimensions are altogether different as the

entire housing stock albeit a small percentage in few cities comprises of most basic materials

seemingly a continuum of past practices.

7.1.2 The housing sector has received little attention at federal and provincial level. Most of the activities

or programs evolved by different governments in the past have been motivated by political

considerations and these suffered from adhocism and many of these remained unsuccessful. Non-

availability of consistent policy and planning; institutional frameworks especially at provincial and

local level together with land market distortions especially around major urban centers; severe

constraints of affordable housing credit and the inflation in construction materials have all made the

situation gloomy on the housing front. This in turn has resulted in mushrooming of informal

settlements and squatters in and around the urban canters’ both big and small as well as around

rural settlements. This coupled with weak urban and rural infrastructure and management has made

most of the settlements shabby having considerably poor and unhygienic living conditions.

7.1.3 Situation in Balochistan is serious if seen in the context of housing quality and livability of its rural

and urban settlements. Balochistan’s population was estimated to be 6.56 million in the 1998

Census and using inter -censal growth rate per district, population projections reflect that current

population (2013) is approximately 9.6 million. The urban population in 1998 in Balochistan was

1.57 million (23.9%) and its growth in the inter- censal period from 1981 to 1998 shows a growth

rate of 5.1% which is highest in Pakistan (Table 7.15). In terms of population density; the highest

density of population was in Quetta (286/sq.km), followed by Jafferabad (177/sq.km); Killa

Abdullah (112/sq.km). Overall population density in Balochistan was just 19 persons/sq.km.


7.1.4 In the last inter-censal

period, population growth

rates varied quite

significantly across

districts. Although the

average for Balochistan

was 2.48%, districts such

as Awaran, Kalat, Turbat

and Sherani had growth

rates of less than 1%. The

recently concluded Population Census 2011, has not been officially published, however preliminary

findings released and reported in media stated that Pakistan’s population had grown 46.9% for the

period 1998-2011. While for Balochistan it was reported that the growth was 139.3% excluding 3

districts. This being unconfirmed and if we use the last census growth rates then the overall

population projections are reflected in Table 6.13. Both the urban and rural growth has been

projected at the same growth rate until the new census confirms the growth differential.

7.1.5 The projected population for 2013 is 9.6 million and it converts to approximately 1.4 million

households if we take average household size at around 6.7 persons (Table 7.16). A large majority

of these households suffer from multi-dimensional poverty and lack of resources. The overall

housing condition in Balochistan comes out as appalling when compared with other provinces in

the country. Only 23% houses in the province have burnt brick/blocks walls as against 83% in

Punjab; 66% in Sindh; 54% in KPK. A large portion of the houses in Balochistan i.e. 68% have

walls made up of mud bricks or are made up of mud against 15%, 28% and 23% respectively in

Punjab, Sindh and KPK (Fig 7.2). Similarly, the situation relating to the material used for roofs in

the houses is also very basic. 73% houses in Balochistan have wood or bamboo roofs and only 7%

houses have roofs made up of concrete i.e. either RCC or RBC (PSLM 2010-11).

20

40

60

80

100

Punjab Sindh KhberPakhtunkhwa

Balochistan

83

66 54

23 15

28 23

68

6 1 6 8

21

3 9

1 1 1

Burnt bricks/blocks Mud bricks/mud

Wood/bamboo Stones

Other

Fig:7.2: Material of the Wall of Houses (PSLM 2010-11)

Table: 7.15: Inter- Censal Population Growth Rate in Balochistan

(in 000) Periods Total Rural Urban

1981 Census 4332 3655 677

1998 Census 6565 4996 1570

Inter Censal Growth 2.48% 1.86% 5.07%

Source: Census Reports

Table 7.16: Balochistan Projected Population 2013

Growth Rate

1981-1998

1881 1998 2010 Growth

Rate 1998-

2010

2013 Male Female Rural Urban

in (000) in (000)

2.47 4,330 6,566 8,912 2.57 9,619 5,134 4,485 7,321 2,299

Source: Census Reports 1981, 1998 and Projections


7.1.6 A district wise condition of the material used for roofs of the houses shows that other than district

Quetta, Sibi and Lasbela almost all other districts have houses having roofs made up of most basic

materials such as wood & bamboo. The ratio in most of the districts is between 70% to 80% and in

about 50% of the districts including Dera Bugti, Kohlu, Harnai, Pishin, Zhob, Musakhel, Killa

Saifullah, Sherani, Kalat, Kharan, Washuk, Barkhan, Panjgur, Kech, Kachi, Nasirabad over 80% of

houses have roofs made up of wood and bamboo. Approximately 10% houses on an average have

roofs made up of steel/cement sheets and 7% have concrete roofs made up of RCC/RBC, which are

predominantly in the three districts mentioned above.The situation on availability of drinking water

is also worrisome where only 21% population has access to piped water across the province; 23%

use taps outside/hand pumps and a large majority (30%) use water from rivers/canals/ and streams.

Over 14% use open wells for drinking water. In addition, 13%households have no toilet facility and

another 14% use dry raised latrines; 35% have pit latrines and 30% have flush toilets connected

with sewerage, tank or drain.

Table:7.17: Material Used for the Roofs of Houses

S.No. RCC/RBC Wood/ Bamboo Steel/Cement Sheets Other

1 Quetta 35.70% 26.80% 20.10% 17.40%

2 Pishin 1.80% 82.80% 15.40% 0.00%

3 Killa Abdullah 3.30% 79.80% 14.70% 2.20%

4 Chaghai 2.20% 73.40% 6.30% 18.20%

5 Nushki 6.50% 73.00% 5.20% 15.30%

6 Sibi 11.40% 43.40% 10.00% 35.30%

7 Ziarat 0.00% 70.10% 26.30% 3.60%

8 Kohlu 1.40% 83.20% 0.80% 14.60%

9 Dera Bugti 0.00% 93.60% 3.80% 2.70%

10 Harnai 0.20% 83.50% 0.50% 15.70%

11 Kalat 2.50% 86.50% 7.70% 3.30%

12 Mastung 2.40% 65.90% 7.50% 24.20%

13 Khuzdar 4.90% 78.90% 11.90% 4.40%

14 Awaran 0.00% 79.20% 2.70% 18.10%

15 Kharan 0.90% 87.20% 3.30% 8.50%

16 Washuk 0.60% 84.30% 1.80% 13.20%

17 Lasbela 18.10% 56.50% 25.50% 0.00%

18 Ketch/Turbat 4.50% 79.80% 9.80% 6.00%

19 Gwadar 5.30% 63.20% 18.10% 13.40%

20 Panjgur 0.10% 85.20% 5.70% 9.00%

21 Zhob 0.80% 83.20% 14.10% 1.80%

22 Loralai 1.40% 77.60% 9.30% 11.70%

23 Barkhan 1.00% 86.20% 12.80% 0.00%

24 Musakhel 0.00% 97.00% 0.20% 2.80%

25 Killa Saifullah 0.80% 91.30% 4.90% 3.00%

26 Sherani 0.80% 87.70% 10.90% 0.60%

27 Nasirabad 1.50% 89.70% 1.90% 6.90%

28 Jaffarabad 0.00% 77.40% 0.20% 22.40%

29 Jhal Magsi 0.00% 77.00% 1.60% 21.40%

30 Bolan/Kachi 0.60% 83.20% 5.40% 10.70%

Total Houses 73,695 755,851 107,969 101,952

Total % 7.10% 72.70% 10.40% 9.80%



Priority Areas

7.1.8 GoB acknowledges that the overall state of housing is extremely weak and more importantly due to

comparatively low economic activity, the real estate and housing markets are also weak and these

operate disjointedly in a few bigger cities only. Hence at present it may not be possible to evolve a

full- fledged housing policy in the short term as many of the important components linked to the

housing policy like housing markets, housing finance, private sector developers, land titles,

registration and building codes and other regulatory mechanisms are not available. Accordingly in

the short to medium term, the strategy concentrates to evolve a housing program for the low income

and poor and it is believed that this intervention will in turn trigger improvements in the overall

housing framework and will prepare the ground for putting out a holistic policy framework pillared

on the multiple lessons learnt during the implementation of the housing program.

Strategy

7.1.9 With a view to address the daunting housing gaps for the poor and the low income groups both in

terms of numbers and the quality of houses, the Government plans to evolve a Hosing Program with

a focus on ‘Low Cost Housing’ that can provide dedicated attention to the housing gaps in the

short to medium term. It is recognized that this program other than addressing the needs for shelter,

will simultaneously trigger construction, production of goods and job creation related economic

activity in the province. The emphasis of Government would be to not only create an enabling

environment but to lead the strategy implementation in collaboration with a range of players

including but not limited to the financial institutions; real estate developers; urban and housing

planners; civil servants and most importantly the beneficiary population. This in turn will gradually

strengthen the housing and land markets together with housing credit markets on the basis of which

the Government can then put across a more holistic policy regime for a wider and technically

geared attention to the sector. As a part of this Strategy, the Government plans to:

i. Create a dedicated but lean institutional set-up, a ‘Balochistan Housing Unit’ within the P&D

Department under a Steering Committee comprising of senior civil servants; urban planning/

housing experts; some reputable community representatives for drawing out a medium term

“Housing Program” for the poor and low income groups as a part of serviced housing enclaves in

urban as well as rural areas. This will be developed in consultation with expert institutions,

housing developers’ and community organizations which could partner with government on this

initiative. This will require considerable technical assistance for drawing up financially viable and

sustainable program design. Partnership with organizations like UN Habitat and Acumen Fund

would be explored.

ii. Evolve a Housing Program geared towards three major objectives:

a. Commercially viable Low Cost Housing as part of better serviced localities i.e. localities

having a minimum level of water & sanitation services;

b. Up gradation and re-development of poor and low income localities again as a

component of improving the run- down houses and the water and sanitation services;

c. Availability of serviced plots for the general population through better planned housing

schemes on commercial lines;


d. GoB subsidy be linked to providing house titles in the name of women head of the

family;

e. Housing program to be taken forward through the private housing developers and

community organizations and it will be pillared on two layers of subsidies;

f. Serviced low cost housing plots/ houses to be largely subsidized for the poor and

vulnerable populations through proper data- based targeting. Given the fact that BISP has

recently undertaken an extensive poverty assessment across Pakistan; this data base can

be considered to be used for transparent targeting. This will facilitate creating this asset in

the name of women;

g. Partial subsidy based low cost housing to be considered for the low- income segments.

This would be by way of providing free government land and interest subsidy on the

housing finance.

iii. Housing program will technical evaluate multiple low cost technologies which could be used in

Balochistan. These technologies preferably use locally available materials for remaining under

budget and these are usually provided with reinforcements for greater strength and sustainability.

In addition:

a. Development of Master Plans/Structural plans to be compulsory requirement for all urban

and rural housing enclaves;

b. Government to remain responsible for providing the connectivity to bulk utilities including

water, electricity, sewerage and where possible with gas;

c. The Housing program would support structures aligned to the rich cultural heritage of the

province and which also conform to the peculiar weather and climatic conditions in different

regions of the province. As a part of this there must be adequate research to explore

possibility of mass production of low cost construction material aligned to the cultural and

environmental conditions;

d. The program to have adequate environmental and social safeguards especially the natural

calamities and the construction materials and the locations must conform to the given

environmental safeguards;

e. The Housing Unit in collaboration with Local Government to ensure that the building by

laws, codal formalities are streamlined and simplified to facilitate the developers/builders,

contractors and common citizens;

f. Community participation may be ensure all along to involve the stake holders in the decisions

relating to housing program with major focus on women who may be given a central decision

making role in order to get their ownership.

iv. Land is one of the principal inputs for housing. Its identification, allocation and servicing are

critical components of housing program. The program would need to undertake an extensive

exercise to identify and create a land bank of suitable pieces of land in all the district

headquarters; tehsil headquarters and major rural settlements for earmarking for planned housing

enclaves.


v. Katchi Abadies upgrade/ re -development/ re- settlement may be taken up as a compulsory

component of master plans. Communities can be encouraged to identify the existing housing

enclaves for upgrade for which a separate financing structure can be evolved. This will require

dedicated community mobilization for developing internal consensus.

Table 7G: Housing (Rs. in million)

Sr.

No

Strategy FY1,

FY2

FY3,

FY4

FY5,

FY6,

FY7

Total Proposed

FA

Portion

1

Housing Unit; Technical Assistance;

Program Design; Master Plans;

technical designs)

139 38 64 241 241

2 Interest on 120,000 Housing units 480 1,320 2,880 4,680 -

3 Cost of 25% Housing Program (new

Construction)

2,214 2,214 3,321 7,750 -

4 Cost of 25% of Housing Program

(Up gradation)

571 571 857 2,000 -

5 Cost of Land Development 2,229 2,229 3,343 7,800 -

6 Program Monitoring 66 34 57 157 144

Total 5,699 6,406 10,522 22,628 385



08 Urban Development


8. Urban Development

8.1 Investing in Cities for Creating Growth Poles

8.1.1 With a vast geographical area and a thin spread of population it is particularly important to

develop growth poles, which can serve as centers from which growth spread effects stimulate the

surrounding economy of mainly scattered population in Balochistan. Growth of relatively large

urban settlements has been rare in Balochistan’s history especially during colonial era when there

was neglect of urban centers in the southern regions. With the exceptions of Quetta- and perhaps

Gwadar in recent years- the growth and decline of urban settlements has largely been a response

to changing trade routes and transportation systems.

8.1.2 Urbanization has proceeded slowly in Balochistan. As per 1998 census, 23.9% population was

urban. The districts in which the urban population exceeds 30% are Kalat, Sibi and Lasbela. It

exceeded 50% in Gwadar and Quetta has over 70% urban population. Rate of growth of

population in these districts significantly exceeds the provincial average. Another important

feature is that from 1981 to 1998, the urban population in Balochistan grew at a rate of over 5%

which is one of the highest in Pakistan. Balochistan’s population is projected to increase by over

50% during 2013-2030 and almost 50% of this is expected to be resident in urban areas. As we

have seen Balochistan is the least urbanized province of Pakistan however the rate of urbanization

is accelerating and by 2013, 2.3 million people are projected to be urban residents.

Table 8.1: Balochistan District Population Projections (in '000)

Census Projected* Projected* Projections

1981 1998 2010 Growth Rate 2013 Urban Rural 2020

Quetta 382 760 1234 4.51% 1,348 1,037 356 1,835

Pishin 202 367 559 3.10% 613 39 582 736

Lasbela 110 118 353 5.17% 390 135 229 556

Turbat 380 413 439 3.81% 473 74 372 615

Gwadar 112 185 263 3.46% 282 48 239 357

Loralai 235 297 351 2.38% 368 43 323 434

Nasirabad 129 246 387 2.37% 406 67 366 478

Khuzdar 276 417 558 3.51% 598 170 430 761

Sibi 99 103 156 1.87% 162 56 117 184

Killa Abdullah1 121 203 625 5.70% 698 110 603 1,030

Balochistan Development Statistics 2010

Notes: 1- Chaghi population is decreasing and migrating to Killa Abdullah

8.1.3 Urban development is faced with a range of challenges and a few among the major constraints are

lack of adequate institutions and non-availability of suitable infrastructure – water, sanitation,

housing, transportation as well as adequate education & health services. Leaving aside Quetta,

most of the urban centers in the province are basically small towns which have overgrown in last

few decades through spread of informal housing and bazaar areas having bare minimum of

infrastructure. There is now a strong case for undertaking a planned upgrade and development of

the bigger towns for creating growth poles in a manner that triggers growth in the semi-

sedimentary population in the hinterlands as well.

8.1.4 Government of Balochistan accordingly plans to undertake a prioritized development of all the

district’s headquarter cities, beginning with the headquarter cities in: Quetta, Pishin, Gwadar,


Lasbela, Kech, Loralai, Sibi, Khuzdar, Nasirabad and Killa Abdullah initially and it would then

be rolled out to the other headquarter cities. Urbanization strategy is being used as a means for

promoting development across the district region as the cities/towns in each district are the

regional hubs of administration, markets and industry (most importantly manufacturing and

utilities). The overall size of the economy in these headquarter cities is quite small. The district

gross product of these cities is dominated by Agriculture and as such their growth will hinge on

integrating their economy to the economy of the district and linking all urban growth poles to

each other as well as to growth poles surrounding Balochistan.

Table 8.2: Gross District Product (World Bank Estimates)

District Agriculture Mining &

Quarrying

Manufacturing Electricity

& Gas

distribution

Construction Wholesale

& Retail

Trade

Transportation

Storage &

Communication

Finance,

Insurance &

Real Estate

Community

Social &

Personal

Services

Quetta 3.2 2.2 11.3 10.7 0.7 42.5 7.1 8.0 13.5

Pishin 14.5 - 1.6 0.2 0.9 38.3 8.7 3.0 12.9

Lasbela 28.7 4.0 36.5 3.3 0.6 16.9 6.5 2.2 12.3

Turbat 22.3 6.0 17.2 2.2 0.8 24.9 12.5 1.8 11.7

Gwadar 26.2 7.2 14.7 - 0.8 27.6 7.9 0.6 12.2

Loralai 26.6 35.6 12.3 - 0.7 13.1 12.3 0.4 12.4

Nasirabad 53.7

3.6 1.5 0.9 7.1 8.4 0.4 10.7

Khuzdar 32.4 0.8 14.0 0.6 1.4 9.9 8.4 0.3 12.2

Sibi 20.8 6.4 8.4 13.2 1.0 15.9 4.9 4.0 13.3

Killa

Abdullah 14.7 1.6 4.1 4.9 1.0 28.9 13.5 4.8 12.9

8.1.5 Urban master plans are already being developed for six divisional headquarters. Under the BCDS,

a key component would be housing schemes especially for poor and low income groups to

contain the growth of slums. This is expected to involve subsidization involving public land; low

cost finances. Such planned approach would require a robust partnership with private estate

developers and active involvement of the local communities especially the women stakeholders at

both the planning and execution stage. Another cross-cutting constraint across all the urban

centers is weak institutions with the exception of Quetta. The Town Municipal Committees,

which are the major town management organizations, are extremely weak both in terms of

finances and organizational capacities. These are managed by mostly low grade employees

having little technical knowhow of urban management and services. Institutional upgrade would

thus remain central to urban development.

8.1.6 The ten district headquarter cities selected for upgrade of municipal infrastructure and institutions

in phase 1 are the major cities in the provinces and their development is expected to trigger

economic activities in the surrounding region. At present there is little data available for these

cities and as such their economic status is being examined on the basis of district economic data.

As these begin to growth and house greater populations, economic activities, there would be

greater chances for dedicated city data collection on the pattern of other major cities in the

country.


8.2 Quetta; building a leading capital city

8.2.1Quetta is the most urbanized district of the province with over 70% of urban population and having a

population growth rate of 4.5%, which is one of the highest in Pakistan’s urban centers. Its

population is expected to reach 1.83 million in 2020. It has highest concentration of senior

managers and professionals, who make up 15% of the population. The share of skilled workers is

15% (most of whom are service sector workers and salespeople). Unskilled workers constitute 16%

of the district labor force and unemployment rate is quite high at 22% in 2010. Quetta has the

second highest per capita district gross product in the province. Trade accounted for about 43% of

district product in 2011 and share of community services was highest at 13.6%. The share of

manufacturing, agriculture and mining in Quetta district product was 11.3%, 3.2% and 2.1%.

Clearly like other provincial capitals in Pakistan, with the exception of Karachi, Quetta has evolved

into a service city.

Table 8.3: Quetta’s Share of Private Sector Outstanding Credit

Quetta Balochistan Quetta as % of Balochistan

June 2008 4,390,026 7,003,393 62.7

June 2009 4,137,013 7,605,390 54.4

June 2010 4,169,687 6,962,998 59.9

June 2011 3,502,759 6,377,946 54.9

June 2012 2,939,399 6,255,884 46.9

Average 2008-2011 55.7


8.2.2 In June 2012 Quetta district accounted for 47% of the outstanding private sector bank credit

extended to Balochistan. In June 2008 this share had been as high as 62.7%. It has clearly declined

on account of the growing instability in the city in last few years. Quetta’s socio economic

infrastructure is better developed with 75% of the housing stock made of burnt brick. Two third of

the population has access to tap water, 94% of households utilize gas for cooking purpose. Two

third of the houses have more than three room each. 90% of household have access to telephone

services (mainly mobiles). While agricultural production is limited, Quetta is in the center of the

fruit hub and mineral deposits are also extensive in the region. Despite being the most populated

region and hub of the economy, Quetta has to go afar to graduate into a city, which encapsulates the

knowledge and technology for leading other regions in the province.

8.3 Pishin; a horticulture hub

8.3.1 Pishin’s population is expected to reach 700,000 by 2020 and currently it is estimated at 576,000.

Pishin’s economy benefits from partial integration with Quetta. The trading sector is well

developed and more than a third of the workforce comprises of commercial workers; skilled

agricultural workers constitute another quarter but manufacturing skilled workers represent only 4%

of the workforce. The district unemployment rate is extremely high at over 31% in 2010 – this

emphasizes the need for a rapid expansion of labor intensive projects such as food processing units

which can exploit the abundant horticultural resources of the area. Trade accounts for about 40% of

the district gross value added followed by agriculture (14.5%) and transport, storage and

communication (8.5%) is low especially compared with other northern districts.


8.3.2 The social development indicators are poor,

with about 40% of the houses consisting of 2

or less rooms. More than 90% of the houses

are made of mud and piped water is

available to only 17% of households. Gas is

widely available and 93% of the households

use gas for cooking and mobile telephone

carriage is almost universal. According to

SBP data private sector credit outstanding

has fallen in Pishin from Rs.86.7 million in

June 08 to Rs. 58.1 million in June 2012 –

this is just about 1% of private sector credit

outstanding in Balochistan in FY12. Private

sector credit is concentrated in agriculture (37%) and manufacturing (35%).

8.4 Lasbela; strengthening industrial base

8.4.1 Lasbela is one of the most developed districts

of Balochistan and is the second most rapidly

growing district as well. It is estimated to

have a population of half a million in 2020 up

from 118,000 in 1998 and from about

390,000 in 2013. 39% of the labor force in

the district is skilled and well over 50% of the

workforce is in agriculture and related

businesses. According to World Bank

estimates, Lasbela has the highest per capita

product value in Balochistan. Here,

manufacturing accounts for well over a third

of district product; the highest in the

province. The second leading production

sector is agriculture accounting for over a

quarter of district product. In FY 08 commercial bank private sector advances to Lasbela amounted

to Rs. 466.2 million, which fell to Rs. 87.3 million by June 2012. Most credit is concentrated in

agriculture, followed by manufacturing, transport and communication and real estate sector. No

credit is extended to the ship breaking industry, utilities, and social sectors.

8.4.2 LIEDA operates 5 industrial estates in the district and has planned to expand Hub Industrial estate

and Gaddani Marble City and establish a power plant. These plans will all be contingent on

availability of additional electricity and water in the region. There is need to prioritize construction

of the dams and the power plant to speed up growth in the district. Despite being one of the

provincial growth poles, socio-economic indicators remained weak here. One third of the

households are constructed of bricks and 90% rely upon wood for cooking. A third of the houses

are one room residences but average household size exceeds 6 persons. There are only three

(public) hospitals in the area and 80% of the births take place at home. Literacy levels are low. The

area has suffered from drought as well heavy rains and flood leading to loss of life (both human and

livestock and collateral damages).


8.5 Turbat; a dates hub

8.5.1 Turbat is the largest city of Makran division and

it has an airport and is connected with road to

Gwadar in south, Panjgur and Awaran in north -

west and north. The district population is

projected to exceed 615,000 by 2020. In 2010,

over one-third of the population was unskilled; a

fifth of the work force was of skilled agricultural

workers and about a quarter were service sector

workers. According to World Bank estimates

about 17% of district product was in the

manufacturing; 25% in the trade sector and 22%

in agriculture. Level of economic activity

declined in the district in last few years as the

private sector credit outstanding to Kech farmers

declined from Rs.241.4 million in 2008 to Rs.46.3 million in June 2012; a commutative fall of over

80%. In June 2012, 45% of outstanding private sector was extended to trading enterprises, 26% to

manufacturing, 17% to mining and 10% to Agriculture.

8.5.2 The overall social sector indicators in the district are weak. About 80% of the homes have non-

cement roofs and about three-fourth of the houses are constructed with mud. Piped water is

available to only 18% of the population and two third of the population used wood as fuel. Gas is

available to only 5%. Over 80% of the houses have two or less than two rooms each and about half

the population has no access to sanitation services. Turbat town has universal excess to electricity

but villages in the district largely lack this access.

8.6 Gwadar; building a port city

8.6.1 The establishment of Gwadar port city is seen a

major event in the recent development history of

Pakistan (and Balochistan). It is being developed

as a major outlet for international trade of

Afghanistan and the eastern Central Asian

republics and is also designed to serve as a major

port in the country in addition to Karachi and Port

Qasim. Gwadar’s population is estimated to be

287,000 in 2013 and over 350,000 in 2020. If we

look at Gwadar’s share of GDP, almost 54%

accrues from agriculture and trade; 14.7% from

manufacturing and 12.2% from community, social

and personal services. The local economy is thus

still dominated by agriculture including fisheries

but a large part of it is taken to Karachi for both local market and exports and there is very little

value addition which is happening in Gwadar. Gwadar’s share of commercial banks’ private sector

advances is stagnant over FY08 to FY12 and it between Rs. 14 million to 25 million in this period.

8.6.2 The physical and social infrastructure is inadequately developed. Metaled roads measure about 280

km only. There are only about 4,000 telephone connections and few post offices and only 15 bank

branches. Two third of the roofs are constructed of wood and more than half of the houses are made


of mud. Piped water is available to only 30% of the population and cooking is done on wood fire by

77% of the household. Gwadar Development Authority has developed a master plan for the city

demarcating, residential, commercial, and industrial and highway sets.

8.7 Loralai; a Minerals Hub in North

8.7.1 Loralai will have a population of about half a

million by 2020. A large part of labor force,

about 40% is in agriculture and 31% consists

of unskilled workers. This is a mining

district and about a third of the gross district

product is generated in the mining sector;

agriculture accounts for a quarter of district

value added; manufacturing and trade is

roughly equivalent at about 12% each. Like

other districts, the economic activity

considerably declined in the period from 2008 to 2012 as reflected from the decline in the

outstanding private sector credit from Rs. 84.3 million in June 2008 to Rs. 55.8 million in June

2012. Private sector credit was concentrated in mainly agriculture and manufacturing.

8.7.2 Social sector statistics are poor. Three fourth of the houses have wooden or bamboo roof and 90%

are made of mud. Only 4% of households have access to piped water and 80% use wood as the

main fuel, only 5% have access to gas. About 70% of houses have two or less than two rooms each

and two thirds of households have no access to telephone services.

8.8 Khuzdar; a midway agriculture span

8.8.1 Situated right in the center of the province,

Khuzdar is very well a connecting point of not

only roads, temperatures but also cultures as it

connects Bela with central Balochistan and

also connects Makran with the central and

eastern districts. A concentrated attention on

Khuzdar can further help it grow into a center

point for Balochistan and major driver of its

economy would be Agriculture including

livestock.

8.8.2 Khuzdar’s population quadrupled during 1961–

1998, rising from 103,000 to 417,000. It was

projected to be 558,000 in 2010 and to rise to over three quarters of a million by 2020 when it

could become second or third largest city in Balochistan. The labor force consists of agricultural

workers and unskilled laborers and the unemployment rate at 18.8% is among the highest in

Balochistan. According to the World Bank estimates its gross district product was Rs. 32.2 billion

in FY11 – third highest among Balochistan’s districts (these estimates are all at FY2000 constant).

About a third of district product originates in agriculture, 14% in manufacturing; 12% in

community and personal services; and less than 10% in trade.

8.8.3 In terms of its financial sector, outstanding private sector credit to Khuzdar district declined from

Rs. 63.2 million in June 2008 to Rs. 26.6 million in June 2012, a massive cumulative fall. It is

clear that despite having a significant share of gross provincial product Khuzdar remains one the


most credit deprived regions in the province. In 2012 the bulk of Khuzdar’s outstanding credit

was allocated to manufacturing (41%) and trade (37.6%); agriculture sector’s share in 2012 was

16%, despite the fact that agriculture’s share in gross district product was 45%. Large variety of

major and minor crops, vegetables and fruits are grown in the region. Livestock exceeds two

million according to the 2006 census. Mineral deposits in the district include chromite, manganese

minerals, lead, zinc and marble. Large manufacturing units are few including ginning factories

and flour mills. Apparel embroidery and carpet knitting is widespread as a household industry.

8.8.4 The health services are underdeveloped with only 60 doctors and just one major hospital in the

district. School enrollment rates are low and dropout rates are high. Social sector indicators are

poor; only about 5% have concrete roofs and 85% of houses are made of mud. Less than 20% of

households have access to tapped water and 85% of households use wood as a main cooking fuel

and the majority of households have two or less than two rooms. Less than 60% of the households

have telephone services (including mobiles).

8.9 Nasirabad; strengthening a crops center

8.9.1 Nasirabad together with

Jafferabad is the granary

of the province and one

of the canal command

area district. Its

population is projected

to be 387,000 in 2010

and projected to reach

half a million by 2020.

About three fourths of

the labor force is in

agriculture. According to

World Bank estimates

about 54% of gross district product (at constant 2000 prices) is from agricultural. Community and

personal services accounted for about 11%; transport sector 8%; and manufacturing only 3.6% of

gross district product in 2011. Financial sector has been fluctuation in last few years. Outstanding

private sector credit to Nasirabad rose from Rs. 236.4 million at end June 2008 to Rs.371.6

million in June 2010 and dipped to Rs.273.4 million in June 2012. 56% of this credit was

extended to agriculture and 39% to manufacturing enterprises. Nasirabad is essentially a crops

growing region and major crops include wheat, barley, mustard, lentils, fodder, rice, fruits, onion,

potato, melons and sugarcane.

8.9.2 Nasirabad’s social development statistics are extremely weak with 84% of the houses made of

mud; only 15% of the population has access to tapped water. 95% of the population uses wood as

the main cooking fuel. 80% of households have two or less rooms each but use of

telecommunication is widespread with 75% of the population possessing mobile phone.

8.10 Sibi; developing a mineral city

8.10.1 Sibi’s population was 103,000 by 1998 and the 2010 projections reported a population of 156,000

which is surprising. This is expected to reach 184,000 – (8%below the 1951 level) by 2020. One

fifth of the workforce in the district is unskilled and about a third is in agriculture. Total district

product is extremely low, estimated at just Rs. 9 billion in 2010–11 (at constant FY2000 prices)

among the lowest in Balochistan district. Agriculture’s share in gross district product of Sibi was


about 21% in FY11 followed by trade (16%); community services (13% each); and manufacturing

(8%) while that of mining was even lower

6.4%. This is surprising for one of the most

mineral rich district of the province.

8.10.2 Private sector credit outstanding to Sibi

declined from Rs. 27.80 million in June

2008 to Rs. 21.98 million in June 2012; a

cumulative fall of over 20% in a five year

period. This indicates weak financial

markets and some focus on financing

purchases of consumer goods not produced

in Sibi. In June 2012 agriculture accounted

for 38% of private credit outstanding,

commence for 33% and manufacturing for

about 25%. No bank financing was available for social and community services and real states.

8.10.3 Despite being a historical city social indicators are very weak. Only 11% of homes have cemented

roofs and 50% of houses are made of mud in the district. However piped water is available to two

thirds of the Sibi population and almost equivalent proportion have access to gas for cooking

purposes, about 40% of houses have more than 2 rooms each and access to land line and mobile

telephone services is almost universal. A wide range of major crops, fruits and vegetables are

grown in the area. Coal, marble, gypsum and limestone deposits and coal extraction is significant

(about 50,000 million tons annually). Food manufacturing and leather manufacturing has been

established. There are only seven bank branches in the region and no private sector banks.

8.11Killa Abdullah; a Gateway for Trade

8.11.1 Killa Abdullah is the border district of the province and its headquarter city Chaman the trade

route to Kandahar in Afghanistan. Its population is projected to have increased from 203,000 in

1998 to 625,000 in 2010; an annual growth rate of 5.7%, which is phenomenal and at this rate it is

projected to reach over a million by 2020, to become the second largest district in the province.

About one third of the labor force is in trade linked activities and a quarter is in agriculture. The

unemployment rate is high at over 25%. According to World Bank estimates about 29% of gross

district product (at constant 2000 prices) is on account of trade; 14.7% agriculture; 12%

community and personal services. The overall gross district product was estimated to be Rs. 34

billion in 2011.

8.11.2 The overall district social development statistics are weak – 88% of the houses are made of mud.

Only 17% of the population has access to tapped water. 80% of the population use wood as the

main cooking fuel. 80% of households have two or more rooms each and use of telephone is

widespread with 94% of the population possessing mobile phone.

Strategy

i. The most significant component that requires attention for the strategy to gradually develop cities

as growth poles in Balochistan is the challenge to strengthen the institutions. Except for Quetta

which has dedicated Municipal Corporation, a development Authority and a Water & Sanitation

Authority, the remaining district head quarter cities have very weak institutional set ups. The

Municipal Committees have weak staff, weak systems, low budgets and also these have been

relegated to handle only residual subjects such as sanitation, street lights etc. The water supply


schemes are undertaken by the PHED department and for urban development, the UP&D

development has been created. With a view to strengthen the management of urban and municipal

functions and regulations there is need to bring greater clarity into the roles and also there is need to

evolve an overarching regional development bodies for undertaking long term planning and

development of urban centers in the region for ensuring their economic connectivity with the rural

hinterland. Under this:

o GoB plans to create 6 Regional Development Authorities (including the three existing

Authorities i.e. QDA, GDA and BDA by reorienting and restructuring these) for a holistic

regional planning and development. These RDAs will focus on urban development of major

towns and will simultaneously attend to the infrastructure needs of rural settlements through

integrated planning. These will undertake master planning, land management, water

sanitation, infrastructure and housing across the region in both urban and rural areas. The two

existing developing Authorities can be restructured to handle regional development such as

QDA can now be responsible for Quetta division; GDA for Makran division.

o Undertake restructuring of all major urban municipal bodies for improving the staffing and

their systems. There is severe shortage of technical expertise including planners , engineers

and urban managers in these institutions.

o In order to provide dedicated operational funds on sustainable basis, a Municipal Fund will be

created. However, with gradual growth of the cities, improved infrastructure and services, the

Municipal Institutions would be encouraged to concentrate on recover of user charges. This

can also be gradually improved by increasing the involvement of communities in planning,

decisions and implementation for greater ownership.

ii. Undertake master Plans of all the cities and the future growth must conform to these plans.

Strengthen the urban planning and management institutions further by modernizing the

management and especially the regulatory mechanisms relating to zoning and building controls.

iii. Undertake up-gradation of the existing water and sanitation systems in the cities through adequate

investments. The city roads to be rehabilitated and necessary planning be undertaken for

decongesting the city markets by earmarking land for the whole sale markets; bus stops etc. in the

outskirts of cities. Relocation of markets, including livestock and agriculture markets will create

the required space for improving the down town areas by widening roads, pavements and

improving drainage system.

iv. None of the cities have adequate infrastructure for water treatment as well as for treatment of

waste water. Both these components to be given adequate attention in the infrastructure upgrade

planning.

v. The future housing colonies to be planned well with adequate water, sanitation and internal roads

facilities. Private sector be encouraged to invest in affordable housing through a public sector

subsidy on land and house finance interest.

vi. Strengthen property rights and improve efficiency of land titling and registration. This is

important for gradually developing vibrant land markets in the cities and removing distortions

which will greatly facilitate in urban growth as well as growth of real estate. Reduce levels of

public land ownership through auctions and use proceeds to finance critical infrastructure and

engage in a reform of public land development agencies.


vii. Encouraging growth of small industry in dedicated industrial enclaves will help in growth of

economic activities in cities. Quetta, Pishin, Loralaiand Turbat must now graduate towards food

processing industry given their locational advantage in the hub of Pakistan’s horticulture

production. Small industrial zones may be established under the SEZ Act and private sector be

incentivized to establish food processing, packaging units for high end local market and export.

viii. Establish an ICT city in Quetta through private sector; by earmarking land, providing

infrastructure and subsidy on finance to encourage creation of software houses and hardware

workshops for creating a leading technology park in the communications and IT services.

ix. Support establishment of industry having backward linkage with raw material in the region such as

cement industry, coal and power generation plants for cities surrounded by mineral reserves.

x. For Gwadar, encourage establishment of industry which can serve to stimulate the spread effects

of port development, such as (a) ship maintenance and repair services (b) cement and construction

and (c) food manufacturing. This requires availability of finance and infrastructure.

xi. Prepare and implement a rural access road program to integrate the cities with the hinterland.

xii. Technical Training and skill development centers be accorded due attention to train manpower in

all the cities. Most of these cities also do not have much access to higher education and tertiary

health care. Ensuring availability of these services together with improving the school education

and basic health services will be important for improving livability of these cities.

xiii. Planning for Phase -2 cities to begin simultaneously and after unrolling investments in the Phase I,

the work on these to also be initiated.

Table 8A: Urban Development (Rs. In million)

Sr.

No. Strategy FY1,

FY2

FY3,

FY4

FY5, FY6,

FY7 Total

Proposed

TA Portion

1 Develop Master Plans of Cities 50 100 0 150 112.5

2 RDA Zhob 159 146 129 434

3 RDA Sibi 159 146 129 434

4 RDA Kalat 159 146 129 434

5 RDA Nasirabad 159 146 129 434

6 Reorient QDA to Quetta Division 36 37 29 102

7 Reorient GDA to Mekran Division 34 32 41 107

8 Institutional development of 9 TMCs 775 163 - 938 704

9 Water, Sanitation & Internal City

Roads for 9 Cities 500 1,000 1,500 3,000

10 Rehabilitation of existing

Infrastructure 700 - - 700

11 Infrastructure Dev -Phase II Cities - 1,000 3,000 4,000

12 Municipal Fund 300 700 1,500 2,500

13 Throw Forward of Existing Schemes 1,861 - - 1,861

Total 4,892 3,616 6,586 15,094 816.5



09 Cross Cutting

Sectors


9. Cross Cutting Sectors

This section of the BCDS describes strategies that cut across several sectors, such as Gender, ICT,

Environment and Disaster Preparedness. All these have lead departments in the government however

these invariably are components which exist across many departments and are implemented by them. The

costs relating to these strategies are already included under implementing authorities however a few

important features and certain stand- alone costs have been included for the lead departments to carry

forward.

9.1 Gender

9.1.1 The GoB is fully committed to ensure equal opportunities to all citizens of the province. Given the

generally low social status of women in such an overridingly patriarchal society, it is important to

make conscious and focused efforts for providing opportunities for women empowerment. In

Balochistan, the male to female ratio in the population is 115:100 as per the population census

compared to other provinces where it is much lower. The enrolment levels of girl children are lower

than boys. There is also a gender gap in the labor market where participation rates of women aged

10 year and above are 60% lower than those of men. Some of the prominent aspects of BCDS

emphasis on gender are:

i. Under the proposed Stipend Based Skill Development Program within the Pro-poor program

component, 30% trainee candidates are proposed to be women. Within this program, women

focused training for nurses/midwives have been proposed.

ii. Another intervention, “Women Focused Micro-Finance for Crafts & Other Livelihood”

would concentrate on ‘Crafts’ and other small enterprises through market linkages through

RSPs for targeting about 50,000 women.

iii. GoB plans to take forward a Gender Free School education. Additionally under two

interventions relating to partnering with private sector for providing education to 300,000

children, it has been emphasized that the out of school girl children be given priority

iv. Under the strengthening of Literacy Program, proposed to be undertaken through NCHD,

the NCHD would prioritize participation of girl children in the literacy program

v. Under health, the strategy focuses on primary health of mother and child at the center stage.

The number of BHUs is being increased and 30% upgraded to BHU Plus level for providing

MNCH services.

vi. One third of BHUs have been proposed to be upgraded to BHU Plus model for delivery of

services on 24/7 basis in all the districts. In addition one secondary level health facility is to

be converted into secondary level hospital and having maternal care and other services.

vii. A Nutrition Program is to be undertaken through dedicated packages and inter-sectorial

linkages, which will be mother and child focused programs.

viii. Under Agriculture; there is a proposal for dedicated interventions for women focused

community mobilization and grant of subsidized inputs including certified seeds and

fertilizers for high value products to women farmers.


ix. In the livestock component the milk processing will focus on women employment.

x. For the Housing Program, women focused community participation has been stressed for

involvement in planning and construction of housing enclaves.

xi. Under Women Empowerment, a fund to be created for providing emergency services for

women and women hostels and protections homes to be proposed.

xii. Support establishment of Gender Focal Persons in every GOB department, and develop a

guidance note on capacity development in gender mainstreaming. These officials should be

responsible to the national gender focal person. Significantly, gender focal persons are not

new civil service positions, but rather those officials whose job descriptions include gender

issues.

Table 9A: Women Empowerment (Rs. in million)

Sr.

No

Strategy FY1,

FY2

FY3,

FY4

FY5, FY6,

FY7

Total Proposed FA

Portion

1 Capacity Development of Women

Development Dept. 110 120 - 230 230

2 Women Shelter Homes/ Hostels

200 300 700 1,200

3 Women Empowerment &

Protection Fund 400 600 1,600 2,600 2,080


Schemes 135

135

Total 845 1,020 2,300 4,165 2,310

9.2 Technology for Empowering People

9.2.1 GoB is cognizant of the importance of technology in the overall development framework and there

is recognition that ICT can be instrumental in improving services and connecting people to the

service providers both public as well as private. GoB considers technology to be an important tool

for bringing efficiency in the larger spectrum of governing. Strategy components on use of ICT are

as under:

i. Creating HRMIS incorporating the data of all the employees of the GoB and linking this with

the payroll for a more scientific management of the personnel management.

ii. Gradually computerizing the land data for bringing transparency in land titling and land

transactions. This will improve real estate in the province. A beginning to be made from

Quetta and be expanded to other cities followed by rural settlements in subsequent phases.

iii. Increasing use of IT for revenue collection. A beginning here can be made in computerization

of the Registrar’s offices in phases.

iv. The provincial secretariat is gradually moving towards communication efficiencies through

use of computers and internet; this however needs to be expanded to the District Offices and

Tehsil Offices for improving connectivity with field offices.


v. Introducing IT in all the middle and high schools in next three years. This is important

intervention for developing the IT literate workforce in the province in future.

vi. Under the interventions relating to expanding Primary Heath Care and integrating preventive

program with BHUs; greater use of ICT is proposed for creating household databases for a

more scientific handling of the mother and child health as well as that of men.

9.2.2 Growth in the ICT is now no longer confined to corporations, governments and individuals who

already participate in something approximating to the vision of a knowledge society. There is now a

substantial movement to spread the benefits of ICT to poor communities, both in the industrialized

countries as well as less developed countries. To many it may seem unrealistic as how can an

expensive and complex technology benefit those whose access to resources including public

services remains limited to the extent of being non- existent? How can technology benefit those

whose education, skills as well as language barriers make such prospects extremely bleak? These

are valid barriers however many less developed countries and regions have made considerable

inroads into this domain for empowering people by raising the capacities and knowledge through

ICT reach out. Some such examples are:

Strategy

i. Establishing ICT based tele-centers in all Tehsils in some designated schools/government buildings

through private sector. These can be initially fully sponsored by government and gradually these can

be made commercially viable with some viability gap funding by GoB.

a. GoB to use these for computer training programs for secondary school children.

b. Work as Agriculture, Livestock, Fisheries Extension centers for providing information on

markets; prices; seeds; fertilizer; pesticides; newer techniques to farmers; processors and

wide range of other uses.

India has initiated an ambitious ICT program for community development for creating Community Service Centers (CSCs) in each panchayat to be run by an entrepreneur under the supervision of a private company handling number of tele-centers in a couple of districts. These are commercial centers which provide commercial services such as internet surfing, communications, information on mandies; prices; other agri information together with some component of public services and IT trainings as well. These are subsidized by the central government. This intervention aims to spread IT infrastructure to Indian villages and to create a private sector infrastructure that can deliver multiple services under a public subsidy

In Sri Lanka the SarvodayaShramadana Movement is establishing multi- purpose community tele-centers. These are to serve as village banks and include development of community database, computer training and dissemination of multiple other informations to villagers through Mobile Multimedia Unit. There are similar interventions in many other developing countries including Indonesia, Thailand, Uzbekistan and others. In Nepal, there are 60 government sponsored rural Tele-canters in 23 districts managed by different agencies. These have been set- up by different agencies including government under different modalities. NGOs participate with local community for these on cost-sharing basis. The financial sustainability of government sponsored tele-centers especially is at risk on account of their operational costs.

Box: 8.1 ICT Innovations for Reaching Out to the Poor


c. Community dissemination programs on health, hygiene, sanitation, disaster preparedness

including such critical programs as immunization etc.

d. Provide range of ICT based commercial services to general public which are available in a

cyber café such as internet service, e-mail facility and computer training to individuals.

e. Can be used by government departments for range of public services such as updating towns

and villages databases; data on municipal and community infrastructure; updated information

on school and health infrastructure and other information. These can also be used for adult

literacy and women empowerment information.

Table 9B: ICT for People (Rs. in million)

Sr.

No

Strategy FY1,

FY2

FY3,

FY4

FY5, FY6,

FY7

Total Proposed FA

Portion

1 Tele-Centers through Private

Sector funded by public sector 542 542 813 1,897 1,018

2 Computer Training of 30,000

children every year 240 240 360 840 -

3 Expanding ICT Usage in

Secretariat (incl hardware) 100 100 150 350 -

4

Introducing ICT Usage in

Field Offices (INCL

(HARDWARE) 100 100 1,250 1,450 -


Schemes 300 300 600 1,200 -

Total 1,282 1,282 3,173 5,737 1,018

9.3 Environment

9.3.1 GoB has remained sensitive about the state of environment in the province and there is strong

recognition of the strategic importance of environmental conservation as this ultimately is the most

valuable asset of Balochistan. Earlier in year 2000, GoB with the support of IUCN and the Royal

Netherlands Embassy prepared and approved the Balochistan Conservation Strategy, which was

both a guideline as well as action plan for development. The BCDS has amply stressed on the

significance of environmental conservation and in fact it is more than a cross cutting theme, as it is

a part and parcel of the development paradigm especially for a province like Balochistan where

environment is sustenance for human beings. Some important components in this regard are:

i. The road sector construction envisages that all future roads construction should include

environmental assessment and emphasizes road side plantations for landscaping and

environmental conservation

ii. Water strategy emphasizes integrated management of canal and drainage system and reuse of

drainage water after treatment. It emphasizes water conservation and re charge of ground

water through greater harnessing of flood waters and discouragement of tube wells. Use of

high efficiency irrigation systems and water shed management for containing environmental

degradation

iv. For water supply and sanitation for urban and rural settlements the BCDS calls for preparation

of future schemes aligned with environmental safeguards as well as in conformity with health,

hygiene and environmental safeguards


v. Under the Housing, up gradation and re-development of low income localities are to be

undertaken in accordance with environmental protections. Additionally the new housing

schemes must support structures aligned to the cultural heritage of the province and to the

climatic conditions and environmental safeguards.

vi. There is emphasis on restoration of the rangelands and stock water for sustainable nourishment

of livestock as part of rangeland development program.

vii. Additionally, under this component two dedicated interventions are proposed namely

a)plantation of mangroves on the coastline in collaboration with international organizations for

conserving coastal bio diversity, mitigation of hazards and to encourage breeding of shrimp, crab

and fish in the region and b) a dedicated Resource Management program again in collaboration

with international donor assistance for managing the resource endowments on sustainable basis

and conserving the rich bio diversity in the province especially rangelands and coastal

environment.

ix. Support information dissemination and advocacy for the Balochistan Environmental

Conservation Strategy, and develop simplified guidance notes for distribution in schools and

women's clubs.

Table 9C: Environment (Rs. in million)

Sr.

No

Strategy FY1,

FY2

FY3,

FY4

FY5, FY6,

FY7

Total Proposed FA

Portion

1 Capacity Development of

Environment Dept. 50 60 120 230 110

2 Resource Management Program 600 600 1,300 2,500 1,875

3 Development of Mangroves 956 954 1,508 3,418 1,709


Schemes 200 - - 200 -

Total 1,806 1,614 2,928 6,348 3,694

9.4 Disaster Preparedness

9.4.1 Balochistan’s vulnerability to disasters both natural as well as man- made is probably more intense

than other provinces in Pakistan given its specific geo physical characteristics coupled with

demography. Last few years of natural disasters especially the torrential floods and rains induced by

increasing climatic changes have exposed the vulnerabilities further. Being an arid region the

province has faced cyclic droughts for many decades and also floods and cyclones have been a

recurring phenomenon here. Despite these susceptibilities, it is only in last few years that the

federal and provincial governments in Pakistan have begun to accord serious thinking to the

disaster preparedness.

9.4.2 GoB has by now established a Provincial Disaster Management Authority and has also finalized

Disaster Risk Management Plan (PDRMP). With the collaboration of donors, some districts like

Gwadar have also prepared a District Disaster Risk Management Plan for mapping out disaster

vulnerable populations and other linked information. The PDRMP is a living document which will

require adjustments as the implementation proceeds. It puts together a plan which identifies the

major challenges; core thematic areas and response to them. Some core challenges which are

endemic to different types of emergencies are:


Lack of general awareness about importance of preparedness

Lack of resources; poor logistics; weak links, capacity at the grass root levels to implement

mitigation programs

Lack of coordination among development, relief and other departments

Lack of early warning systems and weak capacity of emergency services

9.4.3 Based on the systematic challenges faced by the province relating to disasters, some of the critical

ingredients required for better preparedness are listed below. Some of these relating to Rangeland

development; development of mangroves along the coast, watershed management have been

identified in the relevant sector strategies.

i. Strengthening the PDMA with adequate manpower, system development and equipping it with

important equipment and machinery

ii. Establishing Early Warning mechanism in collaboration with MET and other federal agencies

including regular weather updates and developing Information Dissemination System for

coastal communities.

iii. Evolving a long term coastal protection programs including gradual built up of mangroves

other cyclone mitigating natural resources.

iv. Making required investments in flood harvesting through development of storages, and

moving towards more responsible water management at river basin level.

v. Undertaking a comprehensive Rangeland Development and Drought Mitigation Program

including greater forestation in the province

Table 9D: Disaster Management (Rs. in million)

Sr.

No

Strategy FY1,

FY2

FY3, FY4 FY5, FY6,

FY7

Total Proposed FA

Portion

1 Institutional Development of

PDMA 36 25 40 101 101

2 Equipment for Disaster

Preparedness 200 400 600 1,200 -

3 Endowment For Disaster

Management 200 400 900 1,500 -

Total 436 825 1,540 2,801 101


10

Implementation of

Balochistan Comprehensive

Development Strategy

149 | Balochistan Comprehensive Development Strategy | 2013 -2020 Report Outline and Sectors Priority List

10. Implementation of BCDS

Government of Balochistan plans to accord priority to the implementation arrangements for BCDS in

order to ensure that the strategy is put on ground with full preparation and institutional arrangements. The

strategy will be treated as a living document and will be reviewed and updated as the implementation

proceeds in order to keep it reasonably flexible without compromising the overall strategy spirit and its

major features. In terms of implementation, an overarching Program Monitoring & Coordination Unit

(PMCU) will be established in P&D department with the mandate to coordinate and undertake monitoring

and evaluation of the implementation and its impacts. Under the strategy most of the M&E units of major

departments have been proposed to be strengthened. As such the departmental M&E Units will be

responsible for implementation of the relevant components of the strategy.

10.1 Fiscal Projection

10.1.1 The provincial resource picture has improved subsequent to the last NFC Award both on account

of increase in the provincial share in the divisible pool as well as due to change in the distribution

criteria amongst the provinces from population based formula to a multi-criteria formula. This has

resulted in a significant improvement in provincial revenues. In post NFC period, Federal Tax

Assignment has increased at the average annual growth rate of 14%; the straight transfers’

revenues have somewhat remained static and there is commitment to transfer Rs. 12 billion

annually on account of past arrears of natural gas royalties and surcharge under the Aghaz-e

Haqooq-e Balochistan.

Table F.3 Balochistan’s Revenue Projections (Rs. in millions)

Rev

Budget

Budget Projections 2013-14 to 2019-20

2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20

Federal Tax 114,206 123,274 136,834 151,886 168,594 187,139 207,724 230,574

Straight

Transfers plus

GST on Services

16,310 18,706 20,015 21,416 22,915 24,519 26,236 28,072

Non Dev. Grants 13,018 12,950 12,000 12,000 12,000 12,000 12,000 12,000

Provincial Own

Receipts’

5,398 6,468 7,120 7,845 8,653 9,551 10,552 11,668

Tax Receipts 1,217 1,551 1,613 1,677 1,744 1,814 1,887 1,962

Non-Tax 4,181 4,917 5,507 6,168 6,908 7,737 8,666 9,705

Total Receipts 154.330 167,866 183,089 200,992 220,814 242,760 267,065 293,981

Source: Undertaken on the Basis of Past Trends

10.1.2 Based on the allocations for 2012-13, the Revenue Projections of all major components of

revenues have been undertaken for next seven years. It may be seen from Fiscal Table F.3 that an

overriding portion of the current revenues approximately 80 to 84% comes from the Federal Tax

Assignment. The Federal Tax Assignment has been projected to increase at an average annual

growth rate of 11%. This will however be contingent to the federal tax revenues and also on the

next NFC Award after 2015.

10.1.3 The provincial own receipts together with straight transfers on account of oil and gas royalties and

surcharge presently constitute about 15% of current revenue and their share declines to 11% by

2020. Provincial own revenues show less elasticity for growth, whereas decline in the growth rate

of royalties and surcharge income is expected to decline unless there is increase in the volume of


production of oil and gas or there is a revision in gas prices. The provincial non tax has been

projected to grow at 12% on the assumption that further progress on mineral development is likely

to yield better incomes and this can increase further depending on the growth in the sector. The

other provincial tax and non-tax revenues will only be able to reflect better growth after the

economy expands subsequent to major investments in the infrastructure and development of

human capital. The total provincial revenue is projected to grow from Rs. 149 billion in 2012-13 to

Rs. 282 billion in 2019-20.

Table F.4 Balochistan's Expenditure Projections (Rs. In million)

Rev

Budget Budget Projected Salary & Non Salary Expenditure 2013-14-2019-20

HEADS 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20

Pay 28,982 33,329 38,329 44,078 50,690 58,293 67,037 77,093

Allowances 22,360 24,596 27,056 29,762 32,738 36,012 39,613 43,574

Pay/Allowances 51,342 57,925 65,385 73,840 83,428 94,305 106,650 120,667

Pension 8,500 8,500 9,350 10,285 11,314 12,445 13,689 15,058

Debt Servicing 2,272 2,100 2,310 2,541 2,795 3,074 3,381 3,720

Total Estab/Debt 62,114 68,525 77,045 86,666 97,536 109,824 123,720 139,445

Non salary 41,191 48,823 51,132 53,350 55,426 57,297 58,884 60,097

Current Exp 103,305 117,348 128,177 140,016 152,963 167,121 182,604 199,542

Development

Expenditure 33,198 39,932 47,793 53,132 59,199 66,089 73,907 82,771

Total Prov Exp 136,503 157,280 175,970 193,148 212,162 233,210 256,511 282,313

Source: Based on Past Trends(Note: slight calculation differences may arise, purely as a result of rounding off)

10.1.4On the expenditure side, the major expenditure is on account of pay and allowances which presently

constitutes 49% of the current revenue expenditure. This has been project to increase by 13%

annually (15% pay and 10%allowances) in view of the regular pay increases announced by the

government to cater to the inflation. The overall pay and allowances thus increases to constitute

54% of current revenue expenditure at the end of BCDS period. The pay & allowances together

with pension and debt servicing consumes approximately 60% of current revenue expenditure

which is projected to increase to about 68% by the year 2020. The provincial expenditure reflects a

significant space of around 40% for the non-salary operational expenditure, which is expected to

decrease however, is projected to be around 30% of the total current revenue expenditure. This is a

very comfortable space which the provincial government can utilize to improve operations. The

development spending presently constitutes 25% of the provincial expenditure and this has been

projected to grow and constitute 29% of the provincial total expenditure by 2020.

10.1.5 The total funds available to the provincial government in this period cumulatively for development

expenditure are Rs. 422 billion or about Rs. 60 billion annually. Further under non salary, there is

an amount of Rs. 385 billion in the period from 2013-14 till 2019-20. This can slightly shrink

depending on the cost of establishment i.e. in case the government undertakes higher employment

or in case there are salary rises beyond the regular 10 to 15% rises annually. However, the

provincial government can further enlarge the development kitty by shifting some funds from the

non-salary amount in order to undertake the high priority expenditures with greater flexibility.


10.2 BCDS Expenditure and Financing

10.2.1 The BCDS estimated expenditure totals to Rs. 588.8 billion for the period 2013 to 2020.

Components of the BCDS have been costed (in 2012 prices) and in many cases very detailed

costing has been undertaken to support preparation of PC-Is. A large part of the projected

expenditure Rs. 391 billion (66%) is for the capital expenses and remaining Rs. 197 billion (34%) is

for recurrent and revenue components. The revenue component is also for new expenditure as such

the total BCDS expenditure requires additional financing.

Table F.6; BCDS Expenditures (Rs. In million)

Sr

No

Sectors FY1, FY2 FY3, FY4 FY5, FY6, FY7 Total Recurrent Development Proposed FA

Portion

1 Governance 1,426 1,261 1,325 4,012 3,513 499 1,757

2 Security 6,468 5,621 8,794 20,883 14,152 6,731 3,697

3 Pro Poor Programs 6,000 7,870 12,040 25,910 20,910 5,000 6,500

3 School Education 22,835 30,033 35,802 88,670 55,571 33,098 53,970

4 Higher Education 5,990 5,370 8,159 19,519 12,192 7,327 4,406

5 Health 13,261 11,751 18,374 43,386 22,502 20,884 13,426

6 Religious Affairs &

Interfaith Harmony 400 700 900 2,000 1,700 300 -

7 Culture , Tourism 538 500 800 1,838 1,138 700 -

8 Social Welfare, Sports

, Youth affairs 425 730 1,040 2,195 1,100 1,095 -

9 Road & Transport 19,226 29,114 57,175 105,515 515 105,000 30,515

10 Irrigation Water 14,603 18,171 35,559 68,333 983 67,350 16,675

11 Water Supply &

Sanitation 4,586 4,678 8,020 17,284 1,334 15,950 6,950

12 Energy 5,659 7,300 7,558 20,518 200 20,318 600

13 Private Sector Dev 2,485 2,870 6,769 12,124 12,124 - 918

14 Agriculture 4,707 8,500 12,250 25,457 4,110 21,347 4,733

15 Livestock &

Rangeland 3,733 5,610 8,660 18,003 6,100 11,903 4,200

16 Fisheries 4,063 3,980 6,220 14,263 4,250 10,013 3,638

17 Trade & Industry 1,455 2,250 2,185 5,890 3,116 2,774 164

18 Minerals & Natural

Resources Dev. 8,298 10,939 17,017 36,254 2,374 33,880 5,531

19 Housing 5,700 6,406 10,523 22,628 5,078 17,550 385

20 Urbanization 4,891 3,618 6,584 15,093 3,032 12,061 816

21 Cross Cutting; Gender 845 1020 2300 4,165 4,030 135 2,310

22 Cross Cutting; ICT 1282 1282 3173 5,737 0 5737 1,018

23 Cross Cutting;

Environment 1,806 1,614 2,928 6,348 - 6,348 3,694

24 Cross Cutting Disaster

Management 436 825 1,540 2,801 1,301 1,500 101

Total 141,118 172,013 275,695 588,826 181,325 407,500 166,004

Share of Each

Component 24% 29% 47%

31% 69% 28%


10.2.2Against this estimated expenditure of Rs. 588.8 billion, an amount of Rs. 422 billion i.e. 72% has

been projected to be available from the provincial own resources through provincial development


portfolio for this 7- year period based on the revenue and expenditure projections in the Fiscal

Tables F.3 and F.4 above. There will thus be a shortfall of Rs. 166 billion (28% of total BCDS

expenditure) in the strategy period. The provincial own financing can however increase slightly by

way of diverting funds from the non-salary side without compromising on the essential operation

costs.

10.2.3 The overall assessment for required donor financing comes to Rs. 166 billion (USD 1.66 billion)

which calculates to roughly USD 237 million per year. In terms of phasing, there is a major

shortfall in the initial four years of the strategy as at this time the need for financing is greater

compared to the expected revenues. Expenditures are higher as the infrastructure development for

schools, health facilities, roads, and water storages is required largely at the beginning. Also the

strategy envisages to finance the throw forward of existing schemes in the period so that there are

no further cost escalations and benefits begin to flow. It is in this background that the requirement

for donor assistance is almost USD 1.1 billion in the first four years of the strategy requiring about

USD 282 million every year for FY 2013-14 till FY16-17 (Table F.7). Subsequently for the last

three years, total donor financing requirement is USD 529 million or USD 176 million annually.

Table F.7: BCDS Sources of Funding (Rs. In million)

FY1, FY2 FY3, FY4 FY5, FY6,

FY7

Total

BCDS Expenditure 141,118 172,014 275,695 588,828

Provincial Own Resources 87,725 112,331 222,767 422,824

Proposed Foreign Assistance 53,393 59,682 52,928 166,004

USD million 534 597 529 1,660

10.2.4 A large part of the donor financing is expected to be from the multilateral aid agencies such as the

World Bank and ADB, etc. However, there is a considerable scope for attracting grant financing

from different countries ODA component such as the DFID, US AID, AUS AID, etc. All this

however will depend on show casing a strong resolve for reforms and a very robust and

transparent implementation mechanism which inspires the confidence of international donors.

Other than the support for investments, there are many prospects for seeking technical assistance

from Aid Agencies and Balochistan requires considerable assistance under this particular

component as delineated under each sector strategy for enabling the implementing departments to

be able to raise their capacity, systems and undertake the required feasibilities, master plans,

designs etc. for a more efficient implementation.

10.2.5 There is ample scope for attracting Foreign Direct Investment in a range of sectors under the

strategy. This is expected to be contingent upon improving the security as well as the investment

environment in the province. Hence, initially a large part of the investments have to be undertaken

by the GoB itself through own resources as well through borrowings and grant financing to be able

to create an environment which can attract international and national companies to invest in the

province.

10.3 Risk Management

10.3.1 Some of the major risks to BCDS and their mitigation and management are reflected below:


Major Risks Risk Handling and Mitigation

1 Internal

Security

Security will continue to pose major threat to the implementation of BCDS.

However the strategy has been designed in a manner that it can be carried

forward even under low to medium conflict scenario. For instance:

i. Pro poor programs relating to stipend based trainings are planned to be

organized in institutions both inside as well as outside Balochistan and

as such can be carried forward

ii. A large part of investments under Water Sector, Roads, Agriculture,

Livestock, Fisheries; Environment and ICT all relate to benefits at the

gross root levels and are likely to create buy in. Further there are over

30,000 public sector jobs which are being created together with

livelihoods for more than 2 million people.

iii. Under social sectors, strategy emphasizes on alternative delivery

mechanisms to create multiple players especially through communities

and local private sector. This too is likely to create ownership and

performance.

iv. Considerable resources have been allocated for improving policing,

such as for modernizing both intelligence, prosecution and creating

special force for combating terrorism and other threats to security of

the general population

2. Political

Instability

Political instability and break down of civilian rule can be highly disruptive

for BCDS. The strategy is pillared on the peoples’ participation and

participation of private sector as an integral component of governance and

accountability. In case of a major political upheaval, it will be an uphill task

to carry the strategy forward.

There are great expectations from the new Government are a very long time.

If these expectations are not properly managed, these could be the undoing of

the “common man’s government”. This could trigger violence as a result of

unfulfilled expectations. The Communication Strategy would be accordingly

key in managing the peoples’ expectations.

3. Federal

Revenue

Shortages

The Fiscal Revenue Projections have been kept quite conservative with a

view to get the strategy moving even under low revenue scenario.

Approximately 28% of BCDS expenditures are proposed to be financed

through Foreign Assistance, hence a decrease of federal tax revenue by few

percentage points say 10% or so can be absorbed by slightly decreasing some

components, it can met by shrinking non salary expenditures and keeping

costs of establishment under control.

4. Delay in

Availability of

Foreign

Assistance

It is extremely important to negotiate Foreign Aid upfront of BCDS

implementation. BCDS hinges on not just the financial support of donors but

also the technical assistance and leveraging of reforms and difficult actions.

The Provincial Government’s seriousness to implement reforms is likely to

divert a sizeable amount of Foreign Assistance towards Balochistan. The

challenge will be to create institutional mechanisms which can implement the

strategy in its true essence.

5. Weak

Implementation

and Slow

Results

Weak Implementation also poses serious risks for BCDS. This can be

overcome through political resolve. Here the key is to identify a critical mass

of civil servants who can deliver. It is important to create adequate motivation

for Implementation of BCDS to overcome capacity shortages. Once a core


Major Risks Risk Handling and Mitigation

team has been identified then political ownership; appropriate oversight,

accountability, right incentives and motivation are likely to help overcome

many implementation barriers.

A large part of corrections can be ensured by a genuine involvement of the

communities; the real stakeholders in the decision making and

implementation. This involvement and private sector participation will remain

critical for efficiency, effectiveness and genuine reach out to the target

beneficiaries

Further, Balochistan needs major industrial and commercial enterprises in the

extractive industries, agriculture and manufacturing. Quite often, however,

these industries require technical skills and expertise that may not be

available in the province for some years to come. Further, these industries

may not be labor-intensive thus resulting in a growing economy that does

not create jobs. As has been observed in other countries, this could be a

major source of tension between the commercial and the government of the

one hand, and the unemployed – especially the youth – on the other. This

scenario can only be managed by a very robust implementation of the strategy

recommendations under the mineral sector where there is clear emphasis on

undertaking upfront capacity development measures for various components

and stakeholders.

6. Drought/

Natural

Disasters

The risks pertaining to natural calamities can be mitigated to a large extent by

according priority to water management strategy as this entails solutions both

for droughts as well as floods. The resource management, coastal re

vegetation, rangeland development are also strong components within BCDS

which can contain the cyclic and most predicted natural disasters to large

extent. Further strengthening of PDMA and its resources will also create a

better preparedness against natural and other calamites.

10.4 Monitoring, Evaluation & Reporting

10.4.1 The BCDS Implementation Unit in the P& D Department is proposed to be the lead coordinating,

oversight and reporting agency for the BCDS. The Implementation will be undertaken by the line

departments through their regular mechanisms however, the M&E units will be responsible at the

department level to further coordinate with the implementing tiers, oversee department level

implementation and report to the overarching PMCU in the P&D Department. The donor

coordination for BCDS will be undertaken by the Foreign Aid section in P&D Department.

10.4.2 A well designed software will be developed for reporting various components of the

implementation from expenditures; physical progress and grass root level reach out etc. through

adequate monitoring indicators. The PMU will also undertake regular Third Party Evaluations,

Impact Assessments and Monitoring for ensuring that the efficacy of the program is not just being

measured on the basis of physical and financial progress but also on the basis of impacts. In order

to make this assessment meaningful, the PMU may undertake baseline surveys for various

important interventions. PMCU would be provided with adequate manpower, systems and

empowerment to be able to undertake this task appropriately. It would maintain an updated

website containing progress reports including budget releases and expenditures; data bases;

surveys; TPVs etc. for a holistic oversight mechanism.


10.4.3 With a view to accord a high level ownership and create required momentum and motivation, the

PMCU may report to a cabinet committee under the Chief Minister on quarterly basis. It is

important that great focus be made towards the ownership of the BCDS by all stakeholders – be

it government, civil society, business community or political parties. Most important, however, is

the ownership by the incoming Cabinet. Very strong and continuing engagement is highly

recommended – particularly with the MPAs, the Cabinet and the Chief Minister. The early

establishment of the PMCU and the Balochistan Communication Strategy would greatly assist the

continuing ownership.

10.4.4 The overall success of the strategy will be measured on the basis of overarching Monitoring

Indicators that broadly put across the status of Balochistan in terms of poverty, basic health,

education, water supply, sanitation, GPI and other indicators. Of these, the most overarching

indicator which will reflect the achievements of this strategy will be the Multi-dimensional

Poverty with the target to reduce this by half from the present 52% to 25% by the year 2020.

Table M.1:BCDS Monitoring Indicators

Sr. No. Indicators Existing 2016-17 2020-21

1 Poverty (Multidimensional) 52% 45% 25%

2 NER Primary (6-10) 56 60 70

3 NER Middle (11-13) 25 35 50

4 NER Secondary (14-15) 14 25 35

5 Gender Parity Index Primary 0.58 0.65 0.8

6 Coverage of overall Immunization 45% 60% 80%

7 Infant Mortality per 1000 live births 72 65 45

8 U5 Mortality per 1000 live births 89 75 55

9 Skilled Attendant at Delivery 29% 60% 80%

10 Piped Water Supply inside Houses 21% 30% 60%

11 Rural Sanitation (No System) 23% 15% 5%

12 Houses with unsafe roofs 20% 10% 5%


Bibliography

1. Arby, F. (2008)

2. Baloch. (1958). A history of Balochistan. Karachi: Karachi Royal Book Company.

3. Malik, M. B. K. (1961). Hundred years of Pakistan railways: Pakistan Western Railway, 1861-

1961; Pakistan Eastern Railway, 1862-1962. Karachi: Karachi Royal Book Company.

4. Scholtz, F. (2002). Nomadism and colonialism Balochistan 1872 – 1972. Karachi: Oxford

University Press.

5. Siddiqi, M. I. (1956). The fishermen's settlements on the coast of West Pakistan.

Kiel:GeographischesInstitut der Universität, Germany

6. Safdar Sial and Abdul Basit. (2010). Conflict and Insecurity in Balochistan: Assessing Strategic

Policy Options for Peace and Security.Islamabad, Pak Institute for Peace Studies

7. Pakistan’s Balochistan Economic Report. 2008. World Bank, Asian Development Bank and

Government of Balochistan. Report No. 40335 Pk. Volumes I and II.

8. Vision 21. (2010). Pakistan: Balochistan Problems & Solutions

9. Gazdar, H. (2007) Balochistan Economic Report; Background Paper on Social Structures and

Migration, TA4757-PAK. Karachi, Asian Development Bank.

10. Mathew, S. and Moore, M. (2011). State Incapacity by Design: Understanding the Bihar Story.

BrightonInstitute of Development Strategy.

11. Khaild, Z. Pakistan Microfinance Network, Micro WATCH Issue 18 (January-December 2010)

Islamabad, The Mass Company Printers.

12. Aslam, A. and Azm, N. (2012). A study of collateral options for Microfinance loans in Pakistan.

Pakistan Microfinance Network

13. Mehta, A, Bhatia,A, Chatterjee, A. Improving Health and Education Service Delivery in India

through Public–Private Partnerships, Philippines, Asian Development Bank.

14. Public Private Partnership KNOWLEDGE SERIES; under the ADB–Government of India PPP

Initiative, Asian Development Bank.

15. Balochistan Multiple Indicator Cluster Survey. 2010. UNICEF

16. Balochistan District Profiles. 2010, 2011. UNICEF

17. Balochistan; Development Issues and Prospects; Part 1; 2012

18. Balochistan Millennium Development Goals. 2010. UNICEF, Government of Balochistan

19. Balochistan; Development Issues and Prospects; Part II– Health Sector; 2012

20. Balochistan; Development Issues and Prospects; Part II– Livestock; 2012

21. Balochistan; Development Issues and Prospects; Part II– Fisheries; 2012

22. Balochistan; Development Issues and Prospects; Part II– Water and Agriculture 2012

23. Martinez et al. (2012). Third-Party Evaluation of the PPHI in Pakistan; Findings, Conclusions

and Recommendations. Islamabad, Technical Resource Facility.

24. National Nutrition Survey Pakistan. (2011). Aga Khan University, Pakistan, Pakistan Medical

Research Council (PMRC), Nutrition Wing, Cabinet Division, Government of Pakistan,

UNICEF.

25. Khan, A,S. (2001). Policy Analysis of Education in Balochistan. UNESCO

26. Balochistan Public Service Commission (2009) Annual Report.

27. Education Department, Government of Balochistan. (2011).Education for All (EFA) Plan

Balochistan (2011‐ 15).

http://www.google.com.pk/search?tbo=p&tbm=bks&q=inauthor:%22Mohamed+Ismail+Siddiqi%22


28. ISAPS. Eighteenth Constitutional Amendment (Challenges and Opportunities for the Education

Sector).

29. Higher Education Commission (HEC) Pakistan (2009‐ 10) Annual Report.

30. Ministry of Education Islamabad. (2007). National Textbook Policy2007

31. Pakistan Social and Living Measurements Survey 2004-05, Islamabad, Federal Bureau of

Statistics

32. Pakistan Social and Living Measurements Survey 2005‐06, Islamabad, Federal Bureau of

Statistics.


Statistics


Statistics


Statistics

36. Pakistan Social and Living Measurements Survey 2010‐11 Islamabad, Federal Bureau of

Statistics

37. Provincial Budget (2010‐11); Department of Finance, Government of Balochistan.

http://www.balochistan.gov.pk/images/BudgetEstimates/vol-i.pdf

38. Annual Status of Education Report (ASER) Report 2011, Islamabad, Idara – e Taleem- o- Aghai.

39. Skilling Pakistan: National Skills Strategy 2009‐13, National Vocational & Technical Education

Commission (NAVTEC) 2009, Islamabad, National Vocational & Technical Education

Commission.

40. Status of Colleges, Higher and Technical Education Balochistan Prof. Abdul Wahid Kakar

(PowerPoint Briefing Handout).

41. Department of Finance; Government of Balochistan. White Paper on Budget 2012-13

42. The Global Polio Eradication Initiative;

www.polioeradication.org/Infectedcountries/Pakistan.aspx

43. World Bank and International Finance Corporation. (2010). Doing Business in

Pakistan.Washington D.C: The International Bank for Reconstruction and Development.

44. State Bank of Pakistan (2012).

45. Balochistan Agriculture Statistics (2010).

46. Sandhu, A. (2006). Livestock Census of Pakistan. Agricultural Statistics Division Government of

Pakistan.

47. Vision of Fisheries Sector Balochistan 2013-2020. Fisheries Department. Government of

Balochistan.

48. (2012). Balochistan Gross Provincial Product. World Bank

http://databank.worldbank.org/data/views/reports/tableview.aspx

49. (2011). District Development Profile Quetta. UNICEF, P & D Department Government of

Balochistan.

50. Board of Investment, Government of Pakistan.

http://www.pakboi.gov.pk/index.php?option=com_content&view=article&id=486%3Areko-diq-

detail&catid=939&Itemid=502

51. Mines and Minerals Development Department (MMDD).

http://www.balochistan.gov.pk/mines-&-mineral-development.html

52. MCC Resources Development (Pvt.) Limited (MRDL), Annual Report 2011.

53. Lasbela Industrial Estate Development Authority LIEDA Brief. Government of Balochistan.

http://www.lieda.gov.pk/IndustriesTypes.aspx

54. Government of Balochistan; Briefing on Law & Order in Balochistan (2012)

http://www.balochistan.gov.pk/images/BudgetEstimates/vol-i.pdf

http://databank.worldbank.org/data/views/reports/tableview.aspx

http://www.pakboi.gov.pk/index.php?option=com_content&view=article&id=486%3Areko-diq-detail&catid=939&Itemid=502

http://www.pakboi.gov.pk/index.php?option=com_content&view=article&id=486%3Areko-diq-detail&catid=939&Itemid=502

http://www.balochistan.gov.pk/mines-&-mineral-development.html

http://www.lieda.gov.pk/IndustriesTypes.aspx