KARACHI: Largest in geographical size -— 43 per cent of Pakistan — but most sparsely populated -— hardly five per cent of the country’s total population — Balochistan boasts of richest mineral wealth and abundance of fish and fruits. Had Balochistan been part of some other federation or union, it would have progressed by leaps and bounds. It is not so in Islamic Republic of Pakistan. Balochistan is condemned to be the poorest of all the four provinces of the country where as many as 88 per cent of the population lives in sub human conditions, even after 57 years of independence.
Population being the only consideration for the allocation of resources since 1974, Balochistan with least population, suffered most. With a big land mass Balochistan needs heavy investment in building of roads and other infrastructure facilities. For Babus and Barhamins in Islamabad, infrastructure investment in Balochistan was not a priority issue. In the absence of infrastructure facilities, the government agencies are unable to deliver services. Untapped, the rich mineral sources are of only academic interest even today for which Baloch sardars are conveniently blamed.
Balochistan received scant attention from an over-centralized and an insensitive establishment, first in Karachi and then in Islamabad, right from the beginning. The size of Balochistan’s budget is said to be smaller than a few intelligence agencies. Punjab and Sindh manage to mop up resources to the extent of 15 and 12 per cent of their respective budget, but Balochistan cannot meet even five per cent of its budgetary expenses.
From 1947 to 1970, Balochistan’s share in national resources was only 0.6 per cent of the West Pakistan’s share of taxes. Balochistan emerged as a province in July 1970 when one unit was undone. The first elected representative government with majority in a 20-member house took over in 1973 and was dismissed in matter of a few months.
The first National Finance Commission was formed in 1973 which gave its award in 1974. This NFC federalized completely the sales tax and set population as the single criterion for resources distribution. Balochistan’s share was only 3.86 per cent. Punjab got 60.25 per cent, Sindh 22.50 per cent and NWFP 13.39 per cent.
In 1979, the second NFC was formed with Ghulam Ishaq Khan as chairman. It did not give any report. It recommended making the results of 1981 population census as the basis for new resources sharing. The third NFC was formed in 1985 and held nine meetings. It failed to give any report.
It was the 1991 NFC that discussed at length the question of payment of surcharge on natural gas to the provinces and the manner of its distribution. The provinces claimed 100 per cent surcharge levied on gas on production basis. The claim was based on the argument that the increase in the rate of surcharge since 1973 viz-a-viz excise duty had reduced transfers to the provinces. The 1973 constitution recognizes surcharge as a federal levy, the resources of Balochistan needed substantial improvements. Since the federal government was picking up deficits of Balochistan budget it was considered more appropriate to assign Balochistan a permanent source of income. The NFC considered a number of options and finally decided to transfer net proceeds to the provinces.
Natural gas at Sui was discovered in the early fifties. With this gas being used as fuel and input, the industries in Punjab, Sindh and NWFP earned billions and may be trillions of rupees and provided thousand of jobs. Hardly any Baloch was given a job. It took more than 35 years for the decision-makers to recognize Balochistan’s right on this natural resource. It was in 1991 that the National Finance Commission in its award recognized the rights of the provinces on natural resources.
Balochistan has serious reservations on the way the development surcharge is computed on gas. It is based on volume and benefits Sindh where the gas production is estimated at 479,370 million meters. Of this production, 365,960 million cubic metre of gas is consumed within Sindh in industry and domestic sectors. Sindh provides subsidized gas to four fertilizer plants in the province. Balochistan’s gas production is 374,161 million cubic metres. It consumes only 62,138 million cubic feet as Balochistan has a very narrow industrial base and consumed domestically only in Quetta. It is recently that Sui gas is being supplied to Kalat and Ziarat. Even in Balochistan, the gas consumers are mostly non-Balochs. Hardly two per cent of Balochs benefit from Sui gas. Almost 80 per cent of Balochistan gas, over 312 million cubic feet is supplied to Punjab and Sindh.
Balochistan’s plea is that the entire investment on gas exploration made in the early fifties has now been fully recovered. Its per wellhead production cost is less than the net weighted sale proceeds after taking in to account all the factors. But the gas development surcharge is being calculated on volume basis and benefits Sindh.
In the current fiscal year, Balochistan expects to receive Rs2.37 billion as royalty on gas and Rs3.59 billion development surcharge on gas. Sindh is receiving Rs8.72 billion royalty and Rs10.35 billion development surcharge on the gas.
Interestingly, the Balochistan’s private representative on the NFC is a retired bureaucrat and a retired Brigadier. He is a former federal natural resources secretary and should be held responsible for the injustices to Balochistan in matter of development surcharge share to Balochistan. Those closely associated with the NFC say that the retired bureaucrat now wants to compensate for his sins and ensure legitimate share of Balochistan.
Balochistan needs more resources and also want to exercise its choice to develop a strategy of its own for economic and social development. Its budgetary position is not very enviable. Balochistan is pleading before the NFC to give size and backwardness some weightage in the distribution of resources.
Balochs fear a serious demographic imbalance after commissioning of the Gwadar Port which will open floodgates of influx. They want safeguards of their interest and their assets. They want to design and implement their development programme. Ayub Khan did a lot of development work in East Pakistan. He modernized the Chitagong Port, constructed the Chalna Port, Karnaphuli paper mills and built modern buildings in Dhakka. But East Pakistan was separated in 1971 after a bloody war because Bengalis were not associated with the development projects.
