January 1, 2003	Wednesday	Shawwal 27, 1423

QUETTA, Dec 31: The highest foreign exchange reserves in recent years or the upsurge in the economic activities in the country has left no impact in Balochistan where life remained dull for the whole year. The province had never been an area that had ever attracted investment, both foreign and domestic. It remained outside the economic mainstream of the country where ministers and investors seldom visit.

Balochistan is a huge province and its economy is diversified to many sectors that the Pakistani economists can hardly understand.

The life is made sustainable in the border regions close to Iran through movement of kitchen items. Otherwise, it is impossible for any government to make the eatable available in remote areas. In other words, Pakistan’s national economy has no contribution to all sorts of economic activities in Mekran, Kharan and Chagai, an area bigger than Sindh Province.

The impact of drought was deadly. It had destroyed the entire livestock, at least 80 per cent in the drought-affected districts.

Almost 90 per cent population in remote regions got an additional earning by owning flocks. In other words, the destruction of livestock on a massive scale increased the poverty level. The international aid agencies estimated that poverty was around 50 per cent prior to drought. But the prolonged drought for the last six year increased the poverty to 75 per cent.

Agriculture and fisheries are two informal sectors, that too have a minimal impact on provincial economy. The cotton crop is in addition to the agrarian economy of Balochistan as it is expected to produce around 150,000 bales of fine quality cotton this year. It is yet to be seen that the growers will get the just price or the price fixed by the Federal Government or not. The scope for cotton is not bright as the government agencies are buying the cotton at Rs800 per 40 kg this year. The rest of the crops have no market, no buyers. The growers can’t meet the transportation charges if he dares to market it to Karachi, Multan, Lahore or Sukkur, in all four directions of Balochistan borders.

Fisheries is another sector where mafia rules supreme taking the catch to Karachi Fish Harbour denying benefits to the local economy all along the Balochistan coast, right from Karachi to borders with Iran near Chahbahar.

Sardar Mohammad Ali Jogezai, Vice-President of FPCCI, thought that the mega projects launched by the previous Government would have great impact on the provincial economy. However, the elected government could accelerate the pace of economic activities by pumping in more funds taking the economic growth to a higher level for political reasons.

Mr. Jogezai, who remained Provincial Industries Minister in the last government, said that the Saindak Copper and Gold Project is resuming production in few months time and the Government made it mandatory for the cement industry to use coal that too have an impact on coal mining in Balochistan.

Khalifa Tahir, an industrialist and a former Quetta Chamber chief, thought otherwise saying that the improvement in the national economy did not leave an impact on the provincial economy. Export targets during the year could not be achieved, while imports increased, Khalifa Tahir said. The increase in the utility bills enhanced the production cost making Pakistani product uncompetitive and costly in the international market. He thought that there are no prospects for instant growth in the provincial economy in near future.

On the other hand, the government did launch mega projects pumping in around Rs80 billion in next five years. It will have no immediate effect. Rather, its impact will be felt after many years.