Baluchistan could contribute to Pakistan’s overall prosperity

The situation in Baluchistan highlights significant disparities in terms of development when compared to the rest of Pakistan. While rich in natural resources and strategically important due to its coastal access and port at Gwadar, the province faces challenges related to low population density, underdevelopment, and high poverty rates. The province’s large geographical area of 347,190 square kilometers, which constitutes 43.6% of Pakistan’s total area, contrasts sharply with its small population of 14.9 million, or just 6.2% of the national population. This demographic imbalance leads to high service provision costs, as the government must build infrastructure and deliver services over vast, sparsely populated areas. The need for more schools, healthcare facilities, and roads is evident. Still, the province’s ability to fund these services is constrained by its low per capita income, which is only 72.6% of the national average. Baluchistan’s economy is heavily reliant on a few sectors, particularly minor crops, mining, and electricity and gas. These sectors, while important, do not provide the economic diversity seen in more developed provinces. The underdeveloped sectors, such as manufacturing, retail, banking, and private services, contribute very little to the provincial economy, further limiting job opportunities and economic growth. The development gap is starkly evident when examining the Human Development Index (HDI). Baluchistan’s HDI of 0.473, significantly lower than Pakistan’s overall value of 0.570, underscores the province’s lag in key areas like education and healthcare. The literacy rate in Baluchistan is just 42%, far below Pakistan’s national average of 60.7%, and the gross primary enrollment rate stands at 58.1%, compared to 85.5% nationwide. These educational gaps contribute to the high percentage of out-of-school children and poor living standards, including low access to proper housing, with only 19.6% of the population in Baluchistan living in pucca houses. The province’s youth face particularly troubling challenges. Despite having a relatively high labor force rate, youth unemployment in Baluchistan stands at a staggering 37%. Moreover, more than half of the province’s youth population (53.6%) is idle, meaning they are neither employed nor engaged in education. This indicator reflects a missed opportunity for harnessing the potential of the province’s young population. Poverty is also a critical concern. The poverty rate in Baluchistan is among the highest in Pakistan, with 70.5% of the population living below the poverty line. This extreme poverty exacerbates the province’s overall underdevelopment and affects its ability to improve living standards. Given these challenges, addressing Baluchistan’s development gap requires targeted interventions. The province’s share in federal transfers, particularly under the seventh NFC Award, is crucial. Baluchistan receives a larger share of these transfers than its population size would suggest, largely due to its high poverty levels and low population density. However, these transfers need to be revised and increased, reflecting the growing poverty rates and the urgent need for infrastructure development. In addition to increased federal support, there is a need for long-term investment in Baluchistan. The federal Public Sector Development Program (PSDP) should prioritize infrastructure projects, especially those related to highways and irrigation, which are vital for economic growth. Offering a tax holiday for private investments, particularly in the mineral sector, could help tap into Baluchistan’s vast natural resources. Moreover, programs like the Benazir Income Support Program should expand coverage in Baluchistan to address the high levels of poverty. Employment guarantee schemes could provide productive opportunities for the youth, reducing the high unemployment rates and addressing the issue of idle youth. Ultimately, if Baluchistan is to close its development gap, it will require a concerted effort from both the federal and provincial governments, alongside private sector involvement. The province has significant economic potential, and by prioritizing development, it could significantly contribute to Pakistan’s overall prosperity and stability.