It was recently disclosed by the Governor of Balochistan that only 11 per cent of the development budget was utilized during 2003-04. However, the provincial finance minister said that 20 per cent of the Annual Development Programme (ADP) funds were utilized.

The underutilization of the development budget indicates poor fiscal planning and management due to lack of institutional and human capacity. Institutional and human development is a pre-requisite to sustain the process of economic development in Balochistan.

Underutilization of funds has led to underdevelopment. The province will continue to be in this trap until and unless its human resources are developed and institutional capacity improved and enhanced.

Despite financial and technical constraints, Balochistan has been lacking a strong, efficient, and well-coordinated institutional framework for its development. The key role of the Planning and Development Department cannot be denied in the process.

The department performs important functions of preparing the plan, fixing sectorial priorities, formulating policy, examining document plan, and monitoring the progress of schemes and projects.

The Department's Bureau of Statistics is responsible for the collection of data on which a plan is prepared. The correct data in this context guarantees the accuracy of the plan.

It has been frequently observed that the Bureau of Statistics could not provide correct data and hence the plan was doomed to fail. The lack of technical experts, engineers, the IT professionals and other concerned staff in the P&D department is another reason for the unsatisfactory performance.

Computerization of the department and proper training of staff can help improve the performance and efficiency. No rush in regard to submission of pre-feasibility survey report for projects and schemes worth billions of rupees should be exercised as it costs dearly to public exchequer. Example of the Bolan Medical College extension project may be cited in this context.

It is surprising that the project's pre-feasibility report was prepared within one day and implementation was started within a week, but the project took 18 years to complete consuming billions of rupees.

There are scores of reasons for under-development in Balochistan. The vast area with sparse population and its difficult terrain and mountainous regions are frequently counted as the main constraints making the task more difficult and challenging.

The planners have been unable to lay foundations of their plans on sound footings. Non-existing infrastructure such as, roads, means of communication, water supply prove that there has been no proper planning for the socio-economic development in Balochistan.

There is a need to build and enhance the capacity of all elements and actors involved in the development process of this most backward and neglected province. Presently, mega projects are in execution.

It is the right time to identify, discuss and resolve significant issues related to economic development. Bureaucratic snags must be removed to speed up the process and technical expertize should be managed to make the process sustainable.

There has been a dearth of efficient, devoted and competent development planners. Most schemes were planned just to include the names of planners in good books. They did not serve the interest of masses in any area.

The feasibility reports were prepared ignoring the reservations of the real stakeholders. The end result was the failure and loss of public money. An efficient monitoring mechanism, therefore, is needed to ensure transparency in the utilization of funds.

Budgetary policy has an impact on each and every aspect of economic activity. The Rs42.73 billion provincial budget for 2004-05 envisages a Rs28.45 billion revenue expenditure and a development outlay of Rs14.28 billion.

The total outlay of the provincial budget for 2003-04 was Rs34.835 billion out of which Rs9.3 billion was to be spent on the development schemes. The deficit of Rs2.47 billion was 7 per cent of the total outlay.

Ironically, the provincial Public Sector Development Programme (PSDP) 2003-04 with a total outlay of Rs9.3 billion was largely foreign- assisted, or managed programme. Originally the previous budget had spared only Rs2.0363 billion for the PSDP 2003-04.

The Prime Minister's special package of one billion rupees had also been included. It also contained a foreign assistance of Rs1.1926 billion. The federal government had launched a Resource Management Programme from the Asian Development Bank (ADB) to provide Rs2.8 billion to finance development schemes in Balochistan.

No doubt, the amount is a loan, not the grant; hence it further increased the debt servicing liabilities of the Balochistan government. It was a fact that out of the $100 million Resource Development credit from the ADB, Rs3 billion were to be used for retiring costly debts and the remaining Rs2.8 billion for financing development projects.

The government must focus on institutional development significantly and consider it as an integral part of all efforts. All agencies, departments and organizations involved in the process of economic development of the province should have the capacity to conceive significant issues related to development in proper context and correct perspective.

Unfortunately, the concerned institutions in this province have failed to grasp the constraints and snags impeding the process.