December 25, 2006	Monday	Zilhaj 03, 1427

ADDRESSING a gathering at Zarghun Gas Field near Quetta, President Pervez Musharraf said that fear of lawlessness was hampering foreign investments in gas and oil rich Balochistan.

The province is endowed with energy resources including oil, gas and coal, and around 23 per cent out of the natural gas output is being exploited from there, including 18 per cent from Sui. Peace and security that brings about development and investment is wanting.

The Chamalang coal mines, the world’s largest, were discovered some 35 years back but due to security reasons, it could not be exploited and the coal reserves remain untapped. Disputes between Luni and Marri tribes over the ownership had hampered mining activities during the last three decades causing human casualties on both sides.

The resumption of Chamalang mines is a welcome decision as both the tribes have entered into an agreement to revive operations in the 60km-long mines.

According to official estimates, coal reserves are worth Rs200 billion with a possible production of about Rs100 million worth of coal per day and an annual earning of Rs1.24 billion for both, provincial and district governments. Preliminary work done by the government of Pakistan indicates existence of great potentials as the quality of coal is better than the rest of Balochistan. The coal ranges from high volatile C bituminous to high Volatile A bituminous with a total resource of six million tons.

Similarly, the Zarghun gas field, 57km away from Quetta, can be developed as a profitable, viable and sustainable project if secure environment is provided. It will be the only field from where gas shall be produced and consumed exclusively in the same province. The $104 million project will provide natural gas to Quetta and other parts of the province. The project is scheduled to be completed by 2009.

The field is being developed by the Bolan Joint Venture comprising Mari Gas Company (35 per cent), Spud Energy Private Limited (40 per cent), GHPL (17.5 per cent) and Premier-Kufpec (7.5 per cent). Mari Gas Company Limited (MGCL) will be the operator with 132 billion cubic feet (BCF) of gas and an estimated 93 BCF recoverable gas reserves in the Zarghun field.

The Bolan Joint Venture entered into a gas sales and purchase agreement with the Sui Southern Gas Company in August 2006, according to which quality gas will be supplied to the Sui Southern Gas Company and it will be responsible for further transportation to Quetta.

It is expected that the field development and subsequent production activities will open new vistas of economic and social uplift for local community. President Musharraf has directed the company engaged in Zarghun gas field project to ensure that the locals get the maximum number of jobs and should employ people from other areas only, if no local expertise was available. He also directed the company to set up a training centre. He stressed on the need to evolve a formula wherein gains could be shared with local people.

The prevailing environment could not attract foreign investment in Gwadar and other sectors of the provincial economy, including oil and gas exploration. The security problem has delayed completion of Rs13 billion worth Gomal Zam Dam by more than two years. It also calls into question the security guarantee for proposed multi-billion dollar gas pipelines either from Turkmenistan, Iran or Qatar that would run through Balochistan.

The violence in 2004 and 2005 forced the government to beef up security in sensitive areas like Sui, Kohlu, Khuzdar and Gwadar. The gas supply disruptions from Sui in January 2005 cost the economy in billions. According to an official estimate the loss ranged between Rs150 million and Rs200 million per day. This had an adverse impact on key economic sectors like the power, industry and agriculture.

Huge resources will be required to maintain law and order in such a big area for a long period. Provincial economy is already reeling under debt burden and extra expenditure on security measures. It will remain in the same situation as long as political instability continues. The heavy presence of security personnel in Gwadar and other districts, where mega projects are in implementing stage, gives a mixed impression of security and vulnerability and resentment and appeasement in Balochistan. The question is how long can the development process be sustained at gunpoint?

Security and economy are inter-linked and long-term objectives are associated with political stability and social harmony. Balochistan has turned out to be a mega sensitive province due to the discriminatory attitude meted out to it in last five decades. Political stability is essential to maintain security. Nawab Akbar Bugti’s death has revived the politics of agitation.

Suggestions: As security and development are deeply inter-linked, following suggestions could help in sustaining a peaceful environment:

The government must take measures to avoid frustration, alienation and resentment among people of Balochistan. The federal government should take into confidence the tribal and political figures on the development agenda.

The government should act before the prevailing sense of alienation further heightens among people. It should show sensitivity to the needs and demands of the people. It must rehabilitate thousands of people rendered homeless by the military operation. Abolishing the concurrent list and granting real provincial autonomy would help resolve the ills of this province. The issue of distribution of resources should also be resolved in a political manner by involving all stakeholders.

Politics should be practiced according to the social environment of Balochistan which is both tribal and traditional society. The tribes strictly follow their norms, traditions, customs and conventions. The Jirga is still convened to resolve feuds and vendetta between different tribes and clans. A peace Jirga, involving all tribal heads and political figures must be immediately convened. The government must resolve the security issue through a peace truce and stop the military operation forthwith. The situation will improve if real stakeholders are given the sense of ownership and should be made responsible for the security of projects. Political reconciliation and a policy of appeasement can ensure ideal security environment for sustaining ongoing development process and luring foreign investment in Balochistan.