BCDS Revised Final Draft August 27 2013

Draft
Balochistan Comprehensive
Development Strategy
2013 -2020
Planning and Development Department -
Government of Balochistan
1 | Balochistan Comprehensive Development Strategy | 2013 -2020

Report Outline and Sectors Priority List
Draft Message by the Chief Minister
The Balochistan Comprehensive Development Strategy (BCDS) 2013-2020 is the roadmap of the
Government of Balochistan towards the long cherished goal of a holistic development of the province. A
development process, in which the people participate and which impacts their lives as it gets attained.
Such ‘people- centric’ development strategy is undoubtedly the need of the day especially in the
background of current political developments where not only has there been a peaceful political transition
from one government to another but a coalition government representing all major regional and ethnic
groups has come into being entailing greater prospects of peaceful co-existence and political stability. It is
also an opportune time given the fact that the current state of provincial finances is significantly better on
account of fiscal arrangements based on the 7th NFC Award together with the acceptance of Balochistan’s
long standing demand for arrears relating to the royalty and Natural Gas Development Surcharge as a part
of the Aghaz-e-Haqooq-e –Balochistan package.
The, ‘story of Balochistan’ is unfortunately of a region which has lagged behind for too long with serious
implication on the well-being of general population. Issues relating to control over its resources;
inadequate stream of funds; weak governing structures all accumulated into increased poverty;
deprivation which eventually bred deep alienation of various sorts resulting in divisiveness; armed
conflicts and insurgency-like situation. All this has kept the province on the fringes and has denied the
people the development path similar to other regions in the country. In short, the new Government is
confronted with a complex law and order situation together with a huge gap on the development side.
The new coalition Government in Balochistan is however determined to face these challenges through a
single minded pursuit of a policy framework which aims to ‘reach out to the people and win their
confidence through sincere and visible efforts’. Accordingly, the foremost priority of the Government is
to visibly improve governance in the province with a vision for, ‘pro-people development’. Under this
strategy we plan to systematically encourage greater participation of the community in the development
process both in decision making and execution. This includes the participation of women and youth. Such
participation is envisaged to be integral for strengthening the democratic processes in the province and for
improving transparency in public spending. Simultaneously, the strategy thrust is towards increasing
productivity of different sectors especially those in which Balochistan has a strategic advantage such as
minerals; horticulture; agriculture, livestock and fisheries. We plan to increase investments in these;
improve expenditure effectiveness by enhancing the performance of the public sector and create greater
opportunities for jobs and higher incomes. We remain sensitive to increased investments in health;
education and water sanitation for improving human development. The human development which is
sensitive to encouraging participation of women, minorities and other weaker sections of the society for a
more equitable and inclusive society. Our development strategy emphasizes greater use of Information
and Communication Technology for reaching out to our people and for attaining an adequate
technological and competitive edge in a fast changing global economy.
I am confident that, given the resolve of the current leadership and support of the federal government, the
Government of Balochistan is fully poised to take up the responsibility of the essential structural and
policy reforms, undertake a serious implementation of the BCDS for forging ahead towards the path for a
high, inclusive and sustained growth in Balochistan.
I would like to extend my appreciation of the entire team which has taken this initiative forward. I would like to
thank the UNDP for supporting this effort and for remaining engaged with us throughout its formulation; our
appreciation for the consultants M/S M. Yousuf Adil Saleem & Co., Chartered Accountants (Deloitte
Pakistan) for putting together a strategy document which is aligned to our aspirations in close collaboration with

the provincial administration. The Additional Chief Secretary Development, Mr. Aslam Baloch and the Secretary
Finance Mr. Dostain Jamaldeeni need a special mention for their persistent, deep and passionate involvement in this
exercise for evolving a road map in the interest of people of this province.
Chief Minister Balochistan

Acknowledgement
Let me begin by appreciating the UNDP’s assistance in helping the Government of Balochistan in putting
together a roadmap for Balochistan’s Development, the Balochistan Comprehensive Development
Strategy (BCDS) 2013-2020. It is indeed a strategic moment for unfolding a well thought out and a
prioritized development framework for the province by moving away from the earlier mechanism of
putting together a set of small schemes year after year. This earlier approach unfortunately neither helped
in creating the critical infrastructure which could support the provincial economy to grow and nor has it
facilitated in evolving the systems which could facilitate improvements in the state of human
development and the production sectors.
As a departure from the past practise, the BCDS puts across a well-considered and a very precise roadmap
for the next 7 years. This roadmap has been chalked out carefully and it takes into account our critical
structural and system weaknesses and is pillared on some of the strategic strengths such as the minerals;
horticulture; livestock; fisheries etc. It has been pitched on a slightly ambitious note with a view to create
confidence and hope in our future. Such confidence is required given the fact that our political leadership
has resolved to forge ahead towards the goal of improving peoples’ lives by creating opportunities for
growth and job creation and not to be deterred by the disruptions created by different players and forces.
The BCDS implementation requires a sustained fiscal discipline including essential reforms in economic
policy and economic management, as an integral part of the implementation process, which would help to
eliminate waste and inefficiency and impart a new element of dynamism to growth processes in our
economy. The thrust of the reform process would be to gradually raise the capacity of the public sector
while creating opportunities for greater participation of the private sector as ultimately it’s the private
sector which must drive the growth paradigm.
We are especially grateful to the UNDP team led by ------------- and including --------- and ------------------
---- for their continued support throughout BCDS preparation. We would like to extend our appreciation
for the consultants M/S M. Yousuf Adil Saleem & Co., Chartered Accountants (Deloitte Pakistan) for
their work and the overall coordination process through which the strategy was finalized. It needs to be
acknowledged that the consultants undertook this assignment with dedication and commitment.
Acknowledgement are also due to the provincial secretaries, their officers including government officials
at the district levels, members of the civil society, NGOs, business community, who participated in
different consultative sessions and gave valuable inputs. Most significantly the --------- coordination team
led by Mr. G N Marri under the supervision of Mr. --------- requires especial mention for their persistent
coordination and support for this endeavour.
It is my sincere resolve that the P&D Department under the leadership of the Chief Minister and the
Cabinet will make serious and sincere efforts at undertaking the implementation of the BCDS for the
overall well-being and prosperity of the people of Balochistan
Additional Chief Secretary (Development)

Abbreviations
AEDB Alternative Energy Development Board MFD Marine Fisheries Department
ADB Asian Development Bank MICS Multiple Indicator Cluster Survey
AHAN Aik Hunar, Aik Nagar MMcf Million Cubic Feet
AHB Aghaz-e-Haqooq-e-Balochistan MMDD Mines and Mineral Development Department
AIDS Acquired Immune Deficiency Syndrome MNCH Maternal Neonate and Child Health
ASER Annual Status of Education Report MRDL MCC Resources Development (Pvt.) Limited
BBOI Balochistan Board of Investment MSDP Minimum Health Service Delivery Package
Balochistan Comprehensive Development
BCDS MVA Manufacturing Value Added
Strategy
BCG Bacillus Calmette–Guérin MW Megawatt
National Vocational & Technical Education
BDA Balochistan Development Authority NAVTEC
Commission
BEF Balochistan Education Foundation NBFC Non- Banking Financial Company
Balochistan Education Management Information
BEMIS NBP National Bank of Pakistan
System
BIDA Balochistan Irrigation Development Authority NCD Non-Communicable Diseases
BISP Benazir Income Support Program NCGR National Commission for Governance Reforms
BMR Balancing, Modernization And Restructuring NCHD National Commission for Human Development
National Education Management Information
BMR Balochistan Mineral Rules NEMIS
System
BOT Build–operate–transfer NEP National Education Policy
BPSC Balochistan Public Service Commission NER Net Enrolment Rates
BRSP Balochistan Rural Support Program NFC National Finance Commission
Balochistan Technical Education & Vocational
BTEVTA NGO Non-governmental Organization
Training Authority
Balochistan Water Resource Management
BWRMA NHA National Highway Authority
Authority
Centre for Agriculture and Biosciences Norwegian Agency for Development
CABI NORAD
International Cooperation
CCTV Closed-Circuit Television O&G Oil & Gas
CDS The Comprehensive Development Strategy OGDD Oil & Gas Development Department
CEO Chief Executive Officer OOP Out of Pocket
CIF Community Investment Fund P&D Planning & Development
Pakistan Council of Scientific and Industrial
CSC Community Service Centers PCSIR
Research
CSP Community Schools Program PDHS Pakistan Demographic & Health survey
CY Current Year PDMA Provincial Disaster Management Authority
District Disaster Risk Reduction Management
DDRRM PDRMP Provincial Disaster Risk Management Plan
Plan
DFI Development Finance Institution PHC Primary Health Care
DMIS District Management Information System PHED Public Health Engineering Department
Project to Improve Financial Reporting and
DRI Direct Reduced Iron PIFRA
Auditing
DSD Directorate of Staff Development PMDC Pakistan Medical & Dental Council
FAO Food & Agriculture Organization PMS Punjab Management Service
FE/Fe Iron PMU Project Management Unit
FY Financial Year PPAF Pakistan Poverty Alleviation Fund

GDA Gwadar Development Authority PPHI Peoples Primary Healthcare Initiative
GDP Gross Domestic Product PPP Public Private Partnership
GIE Gwadar Industrial Estate PRS Poverty Reduction Strategy
GIS Geographic Information System PSDP Public Sector Development Program
GNP Gross National Product PSLM Pakistan Social & Living Standards Management
GoB Government of Balochistan QDA Quetta Development Authority

GoP Government of Pakistan R&D Research & Development
GPS Global Positioning System RCC Re-enforced Cement Concrete
GPI Gender Parity Index SBP State Bank of Pakistan
GPP Gross Provincial Product SDPI Sustainable Development Policy Institute
GST Government Sales Tax SEMP School Education Management Partners
HDI Human Development Index SEZ Special Economic Zones
HEC Higher Education Commission SIZ Special Industrial Zone
HIE Hub Industrial Estate SLO Students Learning Outcomes

HIV Human Immunodeficiency Virus SME Small And Medium Enterprises
HMIS Health Management Information System SML Saindak Metals Limited

Human Resources Management Information
HRMIS SSM Small Scale Manufacturing
System
IBIS Indus Basin Irrigation System STR Student Teacher Ratio
ICT Information, Communication and Technology TDAP Trade Development Authority of Pakistan
Technical Education And Vocational Training
IDBP Industrial Development Bank of Pakistan TEVTA
Authority
IFAD International Fund for Agricultural Development TMA Taluka Municipal Administration
IMR Infant Mortality Rate TMC Town Municipal Committees
IPP Independent Power Producer TPV Third Party Validation
IT Information Technology UC Union Council
IUCN International Union for Conservation of Nature UN United Nations
IUU Illegal; Unregistered and Unreported UNDP United Nations Development Program
IWRM Integrated Water Resources Management UP&D Urban Planning & Development Department
United States Agency for International
KPI Key Performance Indicators USAID
Development
KPK Khyber Pakhtunkhwa USD United States Dollar
KSE Karachi Stock Exchange VGF Viability Gap Fund
LIEDA Lasbela Industrial Estates Development Authority WB World bank
MDB Mineral Development Board WFP World Food Program

MDG Millennium Development Goals ZTBL Zarai Taraqiati Bank Limited
MFB Micro-Financing Bank

Contents
Executive Summary
1. Approach 21
2. Balochistan; Polity and State of Development 23
2.1 History and Polity 24

2.2 Demography; Geography and Connectivity 25
2.3 Growth and Structural impediments 26
2.4 Widespread and Deep Poverty 28
2.5 Water Constraints 29
2.6 Weak Private Sector and Constraints of Trained Manpower 29
2.7 Security Dimension 30
2.8 Fiscal Framework 30
3. Governance, Security and Sustainability 33
3.1 Governance 34
3.2 Security 38
4. Social Safety Nets and Pro- poor Initiatives; Upfront 41
4.1 Evolving Stipend Based Skill Development Program 42

4.2 Women Focused Skill Development 43
4.3 Strengthening and Expanding Existing Poverty Reduction Programs 44
5. Service Delivery 47
5.1 Education Sector 48

5.2 Technical Training; College & Tertiary Education 57
5.3 Health Sector 60
5.4 Religious Affairs 68
5.5 Culture, tourism & Archaeology 69
5.6 Sports & Youth Affairs 70
6: Infrastructure 72
6.1 Roads & Transport 73

6.2 Water 78
6.3 Water & Sanitation 83
6.4 Energy and Power 86

Contents
7. Economic Growth 90
7.1 Private Sector Development and Financial Intermediation 91

7.2 Agriculture 96
7.3 Livestock & Rangelands 101
7.4 Fisheries 106
7.5 Industry and Trade 110
7.6 Mining and Natural Resources Sector 115
7.7 Housing 124
8. Urban Development 130
8.1 Investing in Cities for Creating Growth Poles 131

8.2 Quetta; building a leading capital city 133
8.3 Pishin; a horticulture hub 133
8.4 Lasbela; strengthening industrial base 134
8.5 Turbat; a dates hub 135
8.6 Gwadar; building a port city 135
8.7 Loralai; a minerals hub in north 136
8.8 Khuzdar; a midway agriculture span 136
8.9 Nasirabad; strengthening a crops center 137
8.10 Sibi; developing a mineral city 137
8.11 Killa Abdullah; gateway for trade 138
9. Cross Cutting Sectors 141
9.1 Gender 142

9.2 Technology for Empowering People 143
9.3 Environment 145
9.4 Disaster Preparedness 146
10. Implementation of BCDS 148
10.1 Fiscal Projection 149

10.2 BCDS Expenditure & Financing 151
10.3 Risk Management 152
10.4 Monitoring, Reporting & Evaluation 154

Contents
Tables
Table 2: Average Annual Growth Rates of Value Added of Major GPP Sectors of
Balochistan FY07 to FY11 27
Table 2.1: Estimates of Structural Changes in Balochistan GPP over FY00 to FY11 27
Table: 3.1: Target / Sectarian Killings 2007-2012 38
Table: 3.2: Law & Order Budget 2009-10 to 2012-13 38
Table 4.1: Microfinance Scenario; Pakistan Sept 2012 44
Table 5.1: Comparative Education Indicators Pakistan 48
Table 5.2:Net Enrolment Rates (2004-05 to 2010-11) 49
Table 5.3: Balochistan Education Expenditure 2006-07to 2011-12 50
Table 5.4: Child Delivery and Type of Assistance 61
Table 5.5: PPHI’s Achievements on Infrastructure 63
Table 5.6: Health Expenditure 2006-07 to 2011-12 65
Table 6.1: Balochistan's Road Sector Allocations FY 2012-13 74
Table 6.2: Road Sector Schemes with NHAFY 2012-13 74
Table 6.3 Road Sector Budget Allocations2009-10 to 2012-13 75
Table 6.3A Road Sector 77
Table 6.4: Balochistan’s Water Resources 79
Table 6.5: Balochistan Irrigation Sector Allocation2012-13 80
Table 6.6: Status of Irrigation Schemes in Federal PSDP 80
Table 6.7: Type of Sanitation Facility Used by the Households in Balochistan 84
Table 6.8: Sanitation Facility (in %) 85
Table 6.9: Balochistan's Water Supply & Sanitation Allocations FY 2012-13 85
Table 6.10: Natural Gas Production (in MMcf) 87
Table 6.11: Energy Consumption by Sector 2010-11 87
Table 7.1: Costs of Doing Business in Pakistan 2009 (Ranks) 92
Table 7.2: Balochistan Credit and Deposit Concentrations (in %) 93
Table 7.3: Balochistan SME Credit 93
Table 7.4: Balochistan's Share in Agriculture Credit 93
Table 7.5:Agriculture Allocations FY 2012-13 97
Table 7.6: Contribution of Balochistan in National Livestock Pool 102
Table 7.7: Balochistan MVA Growth (at constant factor cost) 111
Table 7.8: Industry in the Lasbela Industrial Estate Development Authority 111
Table 7.9: District- Wise Trade Sector Credit in Balochistan June 2012 112
Table 7.10: Private Sector Credit Outstanding to Manufacturing2008-2012 113
Table 7.11: Coal Reported Reserves 117
Table 7.12: Production of Coal by Field (Unit: Tons) 118
Table 7.13: Iron Ore Reserves (in million tons) 118
Table 7.14: Revenue Receipts from Minerals(2008-09 to 2011-12) 120
Table: 7.15: Inter-Kensal Population Growth Rate in Balochistan 125
Table 7.16: Balochistan Projected Population 2013 125
Table: 7.17: Material Used for the Roofs of Houses 126
Table 8.1: Balochistan District Population Projections 131
Table 8.2: Gross District Product (World Bank Estimates) 132
Table 8.3: Quetta’s Share of Private Sector Outstanding Credit 133
Table M.1: BCDS Monitoring Indicators 155
Costing Tables
Table 3A: Governance 37

Table 3B: Security 40
Table 4A: Pro- Poor Programs 46
Table 5A: School Education 57
Table 5B: Technical and Higher Education 60
Table 5C: Health & Population Welfare 67
Table 5D: Religious Affairs 69

Table 5E: Culture, Tourism 70
Table 5F: Sports & Youth 71
Table 6B: Irrigation Water 82
Table 6C: Water & Sanitation 86
Table 6D: Energy 89
Table 7A:Private Sector Development 96
Table 7B: Agriculture 101
Table 7C: Livestock & Rangeland 105
Table 7D: Fisheries Development 110
Table 7E: Industry & Trade 115
Table 7F: Minerals & Natural Resource Development 123
Table 7G:Housing 129
Table 8A: Urbanization 140
Table 9A: Women Empowerment 143
Table 9B: ICT for People 145
Table 9C: Environment 146
Table 9D: Disaster Management 147
Fiscal Tables
Table F.1: Balochistan Revenue Post NFC 2010-2013 31

Table F.2: Balochistan Post NFC Expenditure (2010-11 to 2012-13) 31
Table F.3: Balochistan’s Revenue Projections 149
Table F.4: Balochistan's Expenditure Projections 150
Table F.5: Summary of BCDS Expenditures 18
Table F.6: BCDS Expenditures 151
Table F.7: BCDS Sources of Funding 152
Figures
Fig: 2.1: Province wise Incidence of Multi-Dimensional poverty 28

Fig 5.1: % of Pregnant Women that have Received TTX Injection 61
Fig 5.2: % of Children (12-23 months) Immunized (based on Recall & Record) 62
Fig: 6.1: Water Resources of Balochistan 78
Fig: 6.2: Balochistan Sources of Drinking Water (PSLM 2010-11) 83
Fig: 7.1: Livestock Population in Balochistan 102
Fig: 7.2: Material of the Wall of Houses 125
Boxes
Box 3.1: Bihar’s Governance experience 33

Box 3.2: Model Police Stations in Punjab 39
Box 4.1: Punjab's Partnership with 'Akhuwat' for Micro Credit Program 44

Balochistan
Map of
Balochistan

Vision (draft)
A cohesive, resilient, productive, peaceful and prosperous Balochistan having a society pillared
on enduring values of tolerance; equity, justice and enlightenment gradually built through
persistence efforts at human development; quality infrastructure; increased productivity on
sustained basis.
Goal (draft)
The above vision is planned to be achieved through very serious efforts at attaining following major
goals:
 Strengthening the democratic institutions through conscious, systematic and organized

involvement of community groups in decision making in public programs at local level for up-
scaling transparency and accountability visibly.
 Improving peoples’ trust in governance by ushering in greater transparency in decision making
and program execution through compulsory public information enactment
 Undertaking ‘pro people’ programs having clear regional balance and under the principles of
equity
 Strengthening the capacity of the public sector to deliver through more transparent recruitment;
transfer postings; capacity development and increasing institutional accountability over the
performance
 Making expenditures effective by improving planning, increasing institutional oversight over
execution and moving towards results based management
 Setting clear targets for growth; job creation; productivity and social indicators and evaluating
administrative and political performance on the basis of these indicators and ushering in new
standards of public accountability

Executive Summary
1. The Comprehensive Development Strategy (2013-2020) is the planning of the Government of

Balochistan for undertaking a prioritized development portfolio towards the overall vision of
inclusive growth, better livelihoods, peace and prosperity in Balochistan. It is a 7 year framework
and has been planned to be implemented within the challenging security environment of the
province.
2. The last few years’ investments in Balochistan, especially in the infrastructure both by the GoB as
well as by the federal government; followed by the agreement on the Aghaz-e-Huqooq-e-Balochistan;
the 7th NFC Award and the 18th Amendment to the Constitution despite the criticism of being too little
and too late, have unwrapped many opportunities for development in Balochistan. Other than the
precious fiscal space, these historic corrections provide the much needed administrative autonomy
over many subjects which were hitherto under the shared domain between the federal and provincial
governments. These are definitely huge positives which if utilized well, can make a beginning
towards the growth path. The pathway however, has to be designed with care and it must be bolstered
on some of the strategic strengths of the province such as minerals, horticulture, livestock, fisheries
etc. The harnessing of these resources, at the same time requires creative methods to overcome some
of the structural binds which have held back Balochistan’s development for long. Amongst others the
security, endemic poverty, water constraints, low population density, weak private sector and
institutions and low skilled manpower are few of the over encompassing constraints. It is in this
setting that the government plans to play a much bigger role in multiple arenas to provide the stimulus
to growth and job creation.
3. There is a widespread optimism about the incoming coalition Government in Balochistan and the
new Government has already acknowledged the importance of improving governance through
multiple measures including greater participation of the stakeholders in decision making and clearly
improving the transparency and accountability of public decisions and spending. The GoB aims to
exhibit ‘pro-people’ policies and for this it plans to improve such institutions as the Balochistan
Public Service Commission (BPSC); the Anti-Corruption Establishment. It will expedite PIFRA
reforms; undertake computerization of land records and taxation system; prepare a human resource
management information system linked to payroll; strengthen M&E units of major departments for
a robust monitoring and evaluation system together with TPVs. A public information system
backed by an enactment of compulsory Public Information, together with procurement reforms for
strengthening accountability. The most important reform however will be creating the Public
Accounts Committee for initiating legislative oversight over public expenditures.
4. The law & order situation in Balochistan is the most worrying aspect of current situation and it may
remain fragile for some time. Hence, while the strategy leaves the larger security issues to the
political handling, it provides interventions which in the short to medium term will boost the
security apparatus in significant ways; from additional 5000 police force, improved mobility,
telecommunication to greater use of ICT for a more efficient handling of data and communications.
Strengthening the intelligence wing, prosecution side; establishing anti-terrorist force and bringing
in a forensic lab and witness protection law are some components of the recipe to prepare a more
equipped and trained force for better policing and managing the complex dimension of internal
security in the province.
5. Government plans to set the stage for BCDS by unfolding a few large scale pro-poor Programs;
upfront of the BCDS. This will not only relay early signals of positive activities but will gradually

help in redressing the despair to some extent. The pro-poor interventions include a well-designed
stipend based skill development program for 30,000 youth. It entails a women focused nurses and
midwives’ training program for 1250 women; a micro finance program for 50,000 women
beneficiaries to support livelihoods and expanded Area Development program for 200,000
beneficiaries. The strategy envisions establishment of a Balochistan Microfinance Bank in
partnership with private sector for up-scaling the availability of micro credit. The strategy stresses
on a transparent targeting of beneficiaries by way of creating a data base of the marginalized
population by sharing data from BISP and NADRA. Also under the Balochistan Hosing Program,
subsidy will be provided for construction as well as rehabilitation of 120,000 houses primarily for
the poor. This would be by making available public land free of cost, arranging housing finance
with interest to be borne by GoB and also 25% cost of construction to be financed by the
government. This is envisaged as a major pro poor intervention which will kick start economy
through backward linkages with construction linked industry as well as raw materials.
6. Government is clear that the reform in the school education will largely determine the future growth
trajectory of Balochistan. The GoB will improve school infrastructure; provide requisite facilities
for being able to enroll 500,000 additional children in next few years. A part of these will be
through ‘ community schools ’ in smaller settlements and a part through public private
partnership mechanisms. However, these investments will fit in a reworked governance structure by
taking the decision making down to school level. The reforms including; merit based teacher
recruitments; creation of district level and school level management cadres and bringing in
accountability of the entire system through the annual Student Assessments are aimed at improving
educational governance. Further, GoB will undertake partnerships through BEF as well as with the
well-established private education providers for bringing additional children to schools and
improving quality of education. Given the weak presence of higher education in the province, the
BCDS plans introducing faculties having higher market demand in existing colleges and operating
new colleges in partnership with private sector. It envisages establishment of campuses of a few
selected universities in regions not having higher education facilities; establishment of HEC, for
regulating higher education standards and evolving a system of grants for the universities. For
technical and vocational education, the strategy proposes to establish a central Technical and
Vocational Training Authority and simultaneously establishing management contracts with private
sector for improving the quality of training and linking it to market demand.
7. For health sector, Government plans to bring the PHC and mother and child care to the center stage
by firstly upgrading the 555 civil dispensaries in the province to BHU level and integrating these
and the EPI with the PPHI for an integrated PHC and mother care facilities. Also, one third of the
BHUs will be upgraded to BHU- plus level to cater to maternal health services. For secondary and
tertiary health, the strategy envisages tertiary hospital autonomy pilots, by creating autonomous
governing boards. Greater resources have been provided for division/district specific recruitment of
specialized doctors; female doctors, nurses and paramedic staff for ensuring their availability in the
district hospitals. It envisages a medical college under PPP; nursing trainings in collaboration with
private sector and other deficient services such as diagnostic services; blood banks etc. are proposed
to be undertaken in collaboration with private sector.
8. Given the huge youth bulge and possibilities of the role that youth can play in containing conflict
and promoting peace in the province, GoB plans to encourage their involvement in
multidimensional activities. For evolving a mechanism to contain the fast rising menace of drug
use; the BCDS proposes to undertake a study to determine the extent of the drug problem, including
approximate quantities of drugs crossing into Balochistan, the trafficking and gender disaggregated
data on usage of the drugs within Balochistan, usage in schools and colleges, etc. It is proposed to

undertake a needs analysis of The Detoxification and Rehabilitation Complex for Drug Addicts,
Eastern Bypass, Quetta with a view of supporting the rehabilitation program including supporting
the schools awareness program in the most affected areas of Balochistan.
9. GoB plans to undertake infrastructure development by prioritizing the infrastructure having greater
economic viability through sustainable and inclusive mechanisms. Under the Roads and Transport
sector, the BCDS calls for drawing-up a master plan of the high priority corridors, including rural
access roads, it envisages construction of 2500 km of economic corridors; conversion of 8,000 km
of shingle roads into paved roads and undertaking maintenance of 5000 km of roads. For the
irrigation water, the strategy is clear that evolving water resource management system and
institutional framework (IWRMA) will be central to sustainable water use in the province. The
theme is pillared on undertaking river basin wide management of water with greater focus on the
flood irrigation Sailaba and creating water storages on all strategic locations in the river basins and
handling the Sailaba irrigation and dams command area in an integrated manner. Under the
Strategy, GoB will support establishment of Drip Irrigation Manufacturing Plants in the province
under PPP mode for providing either front- end or back- end subsidy to get a system introduced
with full institutional support. There is emphasis that water supply and sanitation requires a
dedicated attention and given the massive gap, it is planned to undertake integrated water supply
and sanitation system in partnership with the local communities especially women through a
community infrastructure program for a minimum of 5000 settlements.
10. On the energy front, the GoB plans to establish at least two 150 MW each coal based power plants
one in Loralai, at the mine mouth and other Quetta. Second the Government plans to negotiate with
the federal government for allocation of additional Natural Gas to the province in accordance with
the Constitution for; i) setting- up a 100 MW power plant either at Lasbela or near the gas fields; ii)
to make additional Natural Gas available for the industry in the province as a major incentive. GoB
plans to participate in these projects through equity partnership and encourage private sector to
invest and operate these on commercial basis.
11. The Government believes that economic growth can be speeded up by strengthening of private
sector and encouraging availability of institutional credit for all sectors especially SME funds to
spur the small enterprise growth in the province. GoB will accordingly establish Balochistan Board
of Investment to lead the investment portfolio; create a SME fund under its umbrella for making
available technical and financial support to SMEs; evolve a credit guarantee scheme for greater
credit availability; introduce PPP frameworks and dedicated private sector development for
improving investment climate.
12. Under agriculture, the GoB plans to overcome structural challenges by greater reliance on Sailaba
farming with a target to bring in 1 million hectares of additional land under cultivation, which can
yield livelihoods for additional 200,000 households’ (approximately 1.2 million people). High
value products and use of high irrigation efficiency systems will be promoted for better productivity
from each drop of water. Setting-up of agriculture marketing company with GoB support;
mechanisms that make availability of quality inputs in different regions and a modern ICT based
agriculture extension are the core strategy components. For Livestock, the strategy envisages
availability of credit; creation of livestock services company; a livestock marketing and meat
processing company; community based milk collection and marketing; and greater public sector
investment in Rangeland development. Under Fisheries, GoB will complete on-going infrastructure
for harbors, fish processing unit and preparations for operating these facilities in partnership with
private sector. Trainings for fishermen, an intervention to support boats modification have been

prioritized. The strategy envisages exports of processed meat and fresh fish from Gwadar to Middle
East and beyond both by sea and air.
13. Manufacturing sector development would focus on stimulating private sector investment in mineral
and agriculture sector downstream industries. For this, GoB will undertake equity participation in a
few strategic industries; and develop industrial infrastructure. The major economic driver is
however the mineral sector and here the priority measures seek to develop the institutional
framework; taking actions for greater involvement of local population in the development;
undertaking legal frameworks; geological surveys; master plans for future mining leases; preparing
projects which protect the public sector stakes in the mining leases; establishing Coal Washing
plants at different locations, a Ferrochrome plant; De-sulphurization plant and a mini Steel Mill at
strategic locations are some key pioneering interventions requiring equity participation of the GoB
to make a bold beginning. Development of Reko Diq through proper feasibilities will be accorded
high priority and for this GoB plans to set aside funds both for investment as well as for
infrastructure development linked to mineral development in the province.
14. GoB recognizes that cities are engines of growth and it plans to undertake development of all
district headquarter cities in phases with a beginning through 10 cities. The GoB planning envisages
development of city master plans, upgrade of existing municipal infrastructure; development of new
housing enclaves by providing serviced plots more importantly creating dedicated Regional
Development Authorities at divisional level and strengthening the municipal organizations by
creating a Municipal Fund. It lays stress on planned growth which is integrated with the rural
hinterland as well as with markets in the surrounding growth poles in Pakistan and in neighboring
countries.
15. The cross- cutting themes highlight the BCDS focus on women; on environment and on the ICT all
along the strategy. From education, health, water & sanitation and housing, the strategy emphasizes
on women focused interventions for bringing them to the mainstream. There is reliance on greater
use of technology across sectors and there is a special plan for establishing tele-centers to take a
range of services to the rural population. Environmental and resource conservation is also a central
theme with plans for rangeland development. The climatic changes and vulnerability of large
segment of the population makes it imperative to have a functional organization for emergency,
relief and recovery services by creating a robust disaster preparedness apparatus.
Table F.1: Balochistan Revenue Post 7thNFC (2010-2013) (Rs. in Million)

2010-11 2011-12 Budget 2012-13 Growth
Federal Tax Assignment 88,191 98,435 114,206 14%
Straight Transfers plus GST on Services
17,356 17,393 16,310 -3%
Federal Non Development Grants
12,000 12,827 13,018 4%
Tax Receipts 1,156 1,352 1,217 3%
Non-Tax 2,957 3,749 4,181 19%
Total Receipts 121,660 133,756 148,932 11%
Provincial Own Receipts’ 4,113 5,101 5,398 15%
Source: Provincial Accounts 2012-13
16. Provincial revenues have improved significantly subsequent to the 7th NFC Award and the Aghaz-
e-Huqooq-e-Balochistan. The average annual growth in the Federal Tax Assignment from 2010-11
till 2012-13 is working out to be 14% (Table F.1).

17. Based on the past trends, the provincial revenue has been projected to grow from Rs. 149 billion in
2012-13 to Rs. 282 billion by 2019-2020 (Table F.3). Here the major component is the Federal Tax
Assignment which has been projected to grow at 11% annually (as against average annual growth
of 14% seen in last two years) in order to provide for any unwarranted fluctuations. The Federal
Tax Assignment is likely to change after the next NFC Award, however for BCDS projections; the
growth rate has been kept same. The Straight Transfers including GST on Services has been
projected to grow at the rate of 6%, as lately straight transfers have not shown major growth on
account of lack of growth in production volumes. The Provincial Tax is also not likely to exhibit
major growth until there is economic expansion however provincial Non -Tax revenues have been
projected to grow at the annual growth rate of 12%.
Table F.3: Balochistan’s Revenue Projections (Rs. in millions)

Rev
Budget Projections 2013-14 to 2019-20
Budget
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
Federal Tax 114,206 123,274 136,834 151,886 168,594 187,139 207,724 230,574
Straight Transfers + 16,310 18,706 20,015 21,416 22,915 24,519 26,236 28,072
GST on Services
Non Dev. Grants 13,018 12,950 12,000 12,000 12,000 12,000 12,000 12,000
Provincial Own 5,398 6,468 7,120 7,845 8,653 9,551 10,552 11,668
Receipts’
Tax Receipts 1,217 1,551 1,613 1,677 1,744 1,814 1,887 1,962
Non-Tax 4,181 4,917 5,507 6,168 6,908 7,737 8,666 9,705
Total Receipts 154,330 167,868 183,089 200,992 220,814 242,760 267,065 293,981
Source: Undertaken on the Basis of Past Trends
18. On expenditure side, the major expenditure is on account of pay and allowances which presently
constitutes 49% of the current revenue expenditure. This is projected to increase by 13% annually
(15% pay and 10% allowances) in order to cater the regular pay increases announced by the
government to meet the inflation. The total amount available for development expenditure from
2013-14 to 2019-20 is Rs. 422.8 billion.
Table F.4: Balochistan's Expenditure Projections (Rs. in million)

Rev
Budget Projected Salary & Non Salary Expenditure 2013-14-2019-20
Budget
HEADS 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
Pay 28,982 33,329 38,329 44,078 50,690 58,293 67,037 77,093
Allowances 22,360 24,596 27,056 29,762 32,738 36,012 39,613 43,574
Pay/Allowances 51,342 57,925 65,385 73,840 83,428 94,305 106,650 120,667
Pension 8,500 8,500 9,350 10,285 11,314 12,445 13,689 15,058
Debt Servicing 2,272 2,100 2,310 2,541 2,795 3,074 3,381 3,720
Total Estab/Debt 62,115 68,525 77,045 86,666 97,537 109,824 123,720 139,445
Non salary 41,191 48,823 51,132 53,350 55,426 57,297 58,884 60,097
Current Exp 103,305 117,348 128,177 140,016 152,963 167,121 182,604 199,542
Development
33,198 39,932 47,793 53,132 59,199 66,089 73,907 82,771
Expenditure
Total Prov Exp 136,503 157,280 175,970 193,148 212,162 233,210 256,511 282,313
Source: Based on Past Trends(Note: slight calculation differences may arise, purely as a result of rounding off)

19. The total BCDS expenditure has been estimated to be Rs. 588.8 billion for the seven years. Of this
Rs. 422.8 will be financed through the provincial own resources leaving a fiscal deficit of Rs. 166
billion or USD 1.66 billion. Government plans to approach the international donor community both
multilateral and bilateral donors for assistance; including grants, concessional lending and technical
assistance.
Table F.5: Summary of BCDS Expenditures (Rs. in million)

Sr. Sectors Total BCDS Proposed Foreign Proposed Sector
No Expenditure Assistance Portion FA % Share %
1 Governance 4,012 1,757 44% 0.7%
2 Security 20,883 3,697 18% 3.5%
3 Pro Poor Programs 25,910 6,500 25% 4.4%
3 School Education 88,670 53,970 61% 15.1%
4 Higher Education 19,519 4,406 23% 3.3%
5 Health 43,386 13,426 31% 7.4%
6 Religious Affairs & Interfaith
2,000 - 0% 0.3%
harmony
7 Culture , Tourism 1,838 - 0% 0.3%
8 Social Welfare, Sports , Youth
2,195 - 0% 0.4%
affairs
9 Road & Transport 105,515 30,515 29% 17.9%
10 Irrigation Water 68,333 16,675 24% 11.6%
11 Water Supply & sanitation 17,284 6,950 40% 2.9%
12 Energy 20,518 600 3% 3.5%
13 Private Sector Development, 12,124 918 8% 2.1%
14 Agriculture 25,457 4,733 19% 4.3%
15 Livestock & Rangeland 18,003 4,200 23% 3.1%
16 Fisheries 14,263 3,638 26% 2.4%
17 Trade & Industry 5,890 164 3% 1.4%
18 Minerals & Natural Resources
36,254 5,531 15% 6.2%
Development
19 Housing 22,628 385 2% 3.8%
20 Urbanization 15,093 816 5% 2.6%
21 Cross Cutting; Gender 4,165 2,310 55% 0.7%
22 Cross Cutting; ICT 5,737 1,018 18% 1.0%
23 Cross Cutting; Environment 6,348 3,694 58% 1.1%
24 Cross Cutting Disaster
2,801 101 4% 0.5%
Management
25 Total 588,828 166,004 28% 100%
Share of Own and Donor
422,824 166,004
financing
(Note: slight calculation difference may arise, purely as a result of rounding off)
20. The overall assessment for donor financing comes to Rs. 166 billion (USD 1.66 billion) which
calculates to roughly USD 237 million per year. In terms of phasing, there is a major shortfall in the
initial four years of the strategy as at this time the need for financing is greater compared to the
revenues. Also the strategy envisages to finance the throw forward of existing schemes through the
BCDS in the period so that there are no further cost escalations and benefits begin to flow. It is in

this background that the requirement for donor assistance is almost USD 1.1 billion in the first four
years of the strategy (Table F.7).
Table F.7: BCDS Source of Funding (Rs. in million)

FY1, FY2 FY3, FY4 FY5, FY6, FY7 Total
BCDS Expenditure 141,118 172,014 275,695 588,827
Provincial Own Resources 87,725 112,331 222,767 422,823
Proposed Foreign Assistance 53,393 59,682 52,928 166,003
USD million 534 597 529 1,660
21. GoB’s strategy will be a rolling plan and not a one off event. It is a living document to evolve and
move on to next phase as implementation moves forward. With a view to accord a high level
ownership to it; GoB plans to take the BCDS forward under the stewardship of a high profile
Cabinet Committee led by the Chief Minister himself. At operational level the Additional Chief
Secretary Development will be responsible for the implementation through a central Program
Monitoring & Coordinating Unit (PMCU) in the P&D Department for coordination, reporting and
oversight. At department level, dedicated M&E Units will be responsible for implementation
through their regular tiers and undertaking departmental monitoring, reporting and coordination.
Periodic TPVs are to be undertaken by the PMCU through the third party
22. BCDS is likely to come across multiple risks and a few of these have been discussed in chapter 10
together with their possible management. The most serious risk to BCDS would be on account of
political instability and break down of civilian rules, which can simply undo the entire strategy.
There are great expectations from the new Government and if these expectations are not properly
managed, these could be the undoing of the “common man’s government”. This could trigger
violence as a result of unfulfilled expectations. The Communication Strategy would be accordingly
key in managing the peoples’ expectations
23. The overall success of the strategy will be measured on the basis of an overarching Monitoring
Indicators that broadly put across the status of Balochistan in terms of overall poverty and the basic
health, education, water supply, sanitation; GPI and other indicators. Of this the most central and
overarching indicator which will reflect the achievements of this strategy will be the Multi-
dimensional Poverty with the target to reduce this by half from the present 52% to 25%.
Table M.1: BCDS Monitoring Indicators

Sr. Indicators Existing 2016-17 2020-21
1 Poverty (Multidimensional) 52% 45% 25%
2 NER Primary (6-10) 56 60 70
3 NER Middle (11-13) 25 35 50
4 NER Secondary (14-15) 14 25 35
5 Gender Parity Index Primary 0.58 0.65 0.8
6 Coverage of overall Immunization 45% 60% 80%
7 Infant Mortality per 1000 live births 72 65 45
8 U5 Mortality per 1000 live births 89 75 55
9 Skilled Attendant at Delivery 29% 60% 80%
10 Piped Water Supply inside Houses 21% 30% 60%
11 Rural Sanitation (No System) 23% 15% 5%
12 Houses with unsafe roofs 20% 10% 5%

01
Approach

1. Approach
1.1 The Balochistan Comprehensive Development Strategy (BCDS) 2013-2020 encompasses
Government of Balochistan’s vision for the future of people of Balochistan. It lays down the
Government’s overarching development framework for the province based on the aspirations of the
people for steering it towards a more planned growth path. Balochistan has remained trapped under
endemic poverty and underdevelopment for too long and this development deficit has accentuated
peoples’ marginalization to a great degree. The democratic dispensation in the country, coupled
with recent constitutional and fiscal corrections entail noteworthy prospects for greater political,
administrative and fiscal empowerment for the province and it is therefore an opportune time to lay
down the building blocks for a development strategy aiming to partially overcome some structural
roadblocks and lay out a doable priority program.
1.2 There are tremendous expectations from the new Government in Balochistan, which is seen to be a
“common man’s government”. If these expectations are not properly managed, they could be
the undoing of the “common man’s government”. The people of Balochistan, like the whole of
the human race, have human needs that must be satisfied. Whether it be subsistence (food and
shelter in order to survive), identity (to belong), security (to feel safe), affection (to feel valued,
respected and loved), or participation (to be part of decisions and events that shape one’s life), the
non-satisfaction of any of these human needs causes tensions that may lead to violent conflict. The
understanding of the sources of societal tensions is a key consideration of any development strategy
– which must speak to the processes that ameliorate these tensions. Tensions and societal fractures
hamper development; hence this BCDS articulates the capacity of the Government of Balochistan
to address these tensions in the framework of BCDS.
1.3 BCDS is planned to serve not only as the cornerstone of development in Balochistan, but also as the
anchor for peace and social cohesion through (i) addressing the root causes of the conflict in the
Province, and (ii) ensuring that the intent and activities of the development do not exacerbate
current violent conflicts or trigger new ones. Further, BCDS speaks to the Millennium
Development Goals (MDGs) and the Acceleration Framework, and is alive to the policy shift from
infrastructure to production and social sectors, while understanding that a province like Balochistan
will require critical infrastructure for boosting economy and livelihoods.
1.4 The analysis of factors that have caused societal fractures and lack of social cohesion in Balochistan
include governance practices that do not promote the fulfillment of the needs of the people of
Balochistan. It entails recognition that governance across the board (political, economic,
institutional, etc.) needs to be placed on a higher footing if it is to serve the people of the province
adequately. Other fractures that hamper the development of the province includes the debilitating
state of insecurity – whether it is from within or from outside the province; social and ethnic
tensions - again whether intra-province or between the province and other parts of Pakistan; or the
manner of administration and use of natural resources. The response of the province to these
fractures and tensions will determine the future development.
1.5 The cross cutting theme being carried across the development strategy is that the extent of past
neglect makes the task quite intricate as by now the general disillusionments’ have bred alienation.
The positive aspect is that despite all odds, people are yearning for change and an end to the
despondency and despair. It is therefore an urgent need to put across sincere efforts that lays the
foundation for a stronger economy and which begins to show signs of results. It is such a clear

signal which will breed more hope and gradually lessen the drift. The strategy is thus pillared on
partnerships and wider peoples’ participation for ensuring that this effort will lead to more inclusive
growth; it puts women empowerment as integral to growth; and it envisions development that
would create jobs and improves incomes at every stage to keep the promise alive all the way.
1.6 Government understands that the increasingly complex security situation poses the biggest risk to
BCDS. GoB has accordingly drawn a conflict sensitive framework on the premises that the GoB
may have to implement the BCDS within the existing uncertainties. GoB is cognizant that other
than internal security Balochistan has certain inherent weaknesses; many of which are planned to be
attended under the BCDS, however a few of these are likely to remain for some time. BCDS is
pillared on high and wider impact interventions; many innovative interventions are part of the
strategy which has been experimented within the country albeit in simpler form to allow for water
floating for some time. In terms of sequencing, the BCDS will propose a few select pro-poor
initiatives right at the beginning for tactical gains towards confidence building.
1.7 The BCDS is structured in a manner where it lays down a brief background information and based
on this identifies the core priorities and then lists out the major strategy components. It provides
broad cost estimates for the envisioned components and brings across a living document which will
be reviewed and refined it as it moves forward. Despite the security dimension the strategy is
pitched on slightly an ambitious note. The key to the BCDS will be better fiscal management as
without straightening the existing fiscal management practices and without ushering in more
accountable public sector governance, the strategy may not be able to yield the desired outcomes.
The BCDS strongly advocates not just better coordination amongst federal, provincial and donor
programs but urges for joint action on strategic interventions for strong and accountable
implementation and impacts.

02
Balochistan;
Polity and State of
Development

2. Balochistan; Polity and State of Development
2.1 History and Polity
2.1.1 Balochistan is the largest province of Pakistan in terms of land area, comprising 44% of the national
territory and in contrast is the smallest by far in terms of population. Constituting about 5% of the
total country’s population it is also the most under developed province of the country having multi-
dimensional, widespread and deep poverty. 70% of the population resides in scattered, sparsely
populated settlements around water resources amid an arid and rugged terrain.
2.1.2 Balochistan was integrated into British India and that too partially at the end of the nineteenth
century.1 The British interests in Balochistan were primarily strategic i.e. to secure India’s western
frontier against Russian expansionism and for attaining this, the British gradually fostered feudal
order (alien to Balochistan’s historical traditions) in order to strengthen dependence of local
chieftains on the colonial administration.2 On the eve of independence, Balochistan lacked the type
of representative institutions to which power was transferred by colonial authorities in much of the
rest of India. Balochistan’s accession to Pakistan was not therefore underwritten by the type of
political legitimacy that characterized the accession of the other provinces (with the exception of
Azad and occupied Kashmir).
2.1.3 The province attained provincial status only in 1970 as its first provincial assembly became
functional in 1972 – a quarter of a century after Pakistan’s independence. Prior to this it was being
governed as an autonomous state comprising mainly four areas i.e. Tribal, Leased, British
Balochistan and Kalat States. The Kalat States included autonomous states of Kalat, Kharan,
Mekran and Lasbela, which were being ruled by Khans, Nawabs and Jams until 1951. In 1951 these
states joined to form Balochistan States Union until dissolution of one-unit. The first elected
provincial government was soon dismissed leading to straining of relationship between the province
and the centre. These relations have in fact remained stressed both prior to 1972 as well as
subsequently with very brief interludes of representative governments. The relations however came
under further stress after the assassination of Nawab Akbar Bugti, which is believed to have
provided stimulus to the current wave of insurgency- like situation.
2.1.4 The administrative structure created by the British largely remains in place, and continues to
underperform, and the state of development and participation remains much below the national
averages. In addition, the macroeconomic framework adopted by the country during most of its
history has accentuated income and asset distributional inequalities both, within Balochistan and
between the province and the rest of the country. Balochistan’s relative underdevelopment vis-à-vis
the rest of Pakistan is illustrated most graphically by the fact that a large proportion of its gas
resources are transmitted for use outside the province. Political fragmentation, ethnic division and
isolation, lack of synergy between state and community decision making institutions, growing
economic inequalities and abject poverty have fuelled popular resentment, alienation in a wider
section of the society. The security situation in certain pockets of the province has deteriorated and
this has been a major hurdle both with respect to political institution building as well as growth.
Nevertheless it must not be forgotten that Balochistan has enjoyed intermittent periods of political
stability for example, during most of the 1980sand 1990s.
1
Scholtz. F. (2002): Nomadism and Colonialism in Balochistan 1872 – 1972. Karachi: Oxford University Press.
2
Baloch, (1958); A history of Balochistan. Karachi: Karachi Royal Book Company

2.2 Demography; Geography and Connectivity:
2.2.1 Balochistan’s geography and demography

has dictated its development history to a
significant extent. The defining contrasts of
stupendous land mass nearly half of the
country’s area inhabited by only 5% of
population is what underlies the pattern of
thinly populated remote settlements having
low access to services. The provincial
governments in Balochistan have been
pleading for reversing the decades old
population –based revenue distribution
formula amongst the provinces for
distribution of divisible pool resources citing high cost of providing per unit of services to such
demographics. The relatively sparse population of the province estimated to be 9.6 million for 2013
is concentrated regionally and there are vast areas of unpopulated wilderness. Population is mainly
concentrated in the north east in a narrow corridor linking the Quetta –Pishin region extending to
the border of Eastern Punjab and the South East bordering Karachi.
2.2.2 According to 1998 census the three major ethnic groups in Balochistan are Balochi; Brahui and
Pashtun. Other smaller ethnic groups included Sindhis; Punjabis; and Seraikis. There is a significant
population of the Afghan refugees in Balochistan concentrated in the north and north western
districts. As per UNHCR Census of Afghans in Pakistan, a quarter of the Afghan refugees
(769,268) were in Balochistan in 2005.
2.2.3 Balochistan has presently 44% population under the age of 15 years signifying a high dependency
ratio but at the same time a population bulge that can provide the essential workforce to the
economy if adequately galvanized through education and appropriate skills. This entails higher
pressure on the labour market in coming years and the absorption of the workforce will be highly
dependent on the knowledge and abilities of the youth. Another important dimension is
urbanization. The overall urbanization has increased in the province and the rate of growth of the
urban population during 1981-2011 significantly exceeds that of the provincial population as a
whole. However, the urban to total population ratio is still only 24% and it is only in Quetta where
that ratio is around 74% and some other districts like Sibi, Lasbela, Khuzdar and Gwadar, where
this ratio is around 30%.
2.2.4 Connectivity has strategic dimensions for Balochistan; given its distance both from river Indus, a
lifeline for the country and the national trade corridor which runs parallel to the Indus, Balochistan
is thus disconnected from the two major factors of growth in the country. So much so that the
province could not reap the benefits of its hydrocarbon resources due to non-viability because of
distances and now these factors are posing similar challenges for the take-off of Gwadar port and
the mineral wealth of the province. While the road network has been slightly extended in recent
past however the road density is still just 0.15 km per sq. km which is less than half the national
average and lowest among Pakistan’s four provinces. Lack of connectivity within the province as
well as between the main areas of Balochistan population concentrates and growth poles
surrounding Balochistan remains a major development challenge. This lack of connectivity is also
derived from the British administrative system’s establishment of a rail network system which

principally catered to Britain’s colonial interest in the north western border areas of the sub-
continent.3
2.2.5 These peculiarities aside, the province has huge locational advantages as well. It lies at the cultural
and geographical crossroads of South Asia; Central Asia and the Middle East, having over 10,256
km border with neighboring Afghanistan and Iran and over 750 km coastline, which makes it an
ideal candidate for a regional hub for transportation and trade. Poverty of financial (not physical)
resources reflects lack of integration with the growth poles which surround Balochistan – in
Karachi, Rahimyar Khan, Sistan, Oman, UAE and Central Asia. Balochistan is adjacent to the
Straits of Hormuz through which a large proportion of the world’s oil is transmitted. Yet spread
effects from the growth poles to the Balochistan economy have been minimal. This is so despite the
fact that a sizeable population of the province (linked to local clans) resides in neighboring regions.
One of the challenges is to galvanize the Balochistan residents in other regions and countries’ is to
invest in and transfer knowledge and technology to Balochistan. Simultaneously the on-going
efforts to make Gwadar port fully operational, will need to be boosted up and this in turn will spur
the process of integration of Balochistan’s economy with surrounding regions.
2.3 Growth and Structural impediments
2.3.1 According to World Bank estimations Balochistan’s GPP grew at a faster rate than Pakistan’s
GNP during FY89 to FY97. Growth decelerated in subsequent years and Balochistan’s share of
Pakistan’s GNP fell from 4.2% in the mid-1990s to 3.4% in FY05. The World Bank notes
particularly high growth rate fluctuations in Balochistan relative to other provinces during FY96 to
FY05. It also shows a much larger share of the agricultural sector in Balochistan’s GPP in FY11
than that of the other provinces. Real growth in Balochistan has been significantly higher during
FY01 to FY04 when it averaged about 9% per annum. During FY07 to FY11 annual rates of
growth of the major economic sectors varied significantly.
2.3.2 The GPP estimates for Balochistan for the period 2005 to 2011 show considerable variation from
the estimation for the 1991 to 2005 period, which require a review for arriving at consistent data.
In addition, it is now important for the provincial government to gradually develop a local capacity
for measuring Balochistan’s GPP from primary sources so that the provincial government is able
to assess the economic growth and structural changes over time itself and undertake its own
corrections.
3
Malik, M. B. K. (1961) Hundred years of Pakistan railways: Pakistan Western Railway, 1861-1961; Pakistan
Eastern Railway, 1862-1962. Karachi: Karachi Royal Book Company

2.3.3 The commodity producing sectors turned
Table 2. : Average Annual Growth Rates of Value
in a lackluster growth performance Added of Major GPP Sectors of Balochistan FY07 to
during FY07 to FY11. Mining value FY11
added declined every year of the period
with the average growth in this period Sectors
being -2.6%.Agricultural value added Agriculture, Fishing and Forestry 3.22
growth has fluctuated widely during the Mining -2.61
FY07-FY11 period, with an average
Manufacturing 3.60
growth of 3.2%. Livestock dominates
Balochistan agriculture and in FY11 it Electricity, gas and water 15.60
accounted for about three fourths of Construction 4.48
agricultural value added. As far as the Trade 3.90
service sectors are concerned, there has
been a persistent decline in the financial Transport 15.89
sector throughout FY07 – FY11. The Finance and Real Estate -9.69
growth in the electricity, gas and Community and Personal Services 5.65
transport sectors has been encouraging
with an average growth of 15.6% in this Ownership of Dwellings 11.84
period. The average growth rate of trade GPP 4.22
in this period has been 3.9%. The overall World Bank (2011) Table 3
GPP of the province grew at an average
growth rate of 4.2% in the period 2007 to 2011.
2.3.4 If the structural changes are examined for the period from FY00 to FY11, it shows that Agriculture
continued to constitute about one third of the GPP; mining sector’s share fell from 8.6% to 4.6%;
utilities decreased from 4.3% to 3.2% and community services also declined from 15.4% to 11.7%
in this period. The positives are that the share of manufacturing improved from 6.7% to 15.9% and
trade also increased from 16.3% to 18.7%. Balochistan’s growth performance during the last
decade is a cause of national concern partially because of the relatively narrow gap between
national and provincial production per capita conceals the distributional unevenness which
characterizes the Balochistan economy.
Table 2.1: Estimates of Structural Changes in Balochistan GPP overFY00 to FY11

2000-01 2004-05 2010-11
Agriculture, Fishing and Forestry 34.4 32.3 34.0
Mining 8.6 6.8 4.6
Manufacturing 6.7 12.7 15.9
Electricity, gas and water 4.3 2.8 3.2
Construction 1.5 1.2 0.8
Trade 16.3 18.8 18.7
Transport 8.2 13.2 8.7
Finance 0.6 0.7 0.7
Community Services 15.4 14.4 11.7
Ownership of Dwellings 1.8 1.4 1.2
Balochistan GPP 97.8 104.3 99.5
Source: World Bank (2011) Table 1.
(Note: calculation differences may arise, purely as a result of rounding off)

2.4 Widespread and Deep Poverty
2.4.1 The biggest development challenge in the province today is rampant poverty across the province.
While there are multiple research and information available on the poverty levels in the province
compared to the other provinces however the recent research based report by Arif Naveed and
Nazim Ali titled, ‘District Profile of Poverty in Pakistan’ (SDPI; 2012) brings out the extent of
multi-dimensional poverty in different districts of Pakistan reflecting the poverty dimensions and
its regional variations. The research suggest that poverty in Pakistan needs to be seen as a state of
multiple deprivations as an alternative to the traditional income/consumption based poverty
measure for taking into account multifaceted deprivations faced by the poor. The highest incidence
of poverty is in Balochistan where 52% of the households are under poverty and of these three
fourths of the households (72%) in the rural areas are poor.
Fig:2.1- Province wise Incidence of Multi-Dimensional poverty
0.8 0.72 Urban

0.52 Rural
0.6 Total 0.46
0.43
0.32 0.33
0.4 0.29 0.28
0.19 0.2
0.18
0.2 0.1
0
Balochistan KPK Punjab Sindh
Source: Clustered Deprivation; District Profile of Poverty in Pakistan; SDPI (2012)
2.4.2 The above report takes into account the overall state of human development including health,
education; living conditions along with incomes and wealth. The overall state of human
development continues to lag behind the national indicators significantly. While Pakistan as a
whole is lagging behind most of the MDGs, situation in Balochistan is worst-off. The % of 10 years
and above who have ever attended school is 42 for Balochistan as against the national average of
53%. The NER primary (6 to10) in Balochistan is 54% against the national average of 62%. As per
the UN Human Development Report 2011, on Pakistan, there is considerable variation across
provinces with respect to HDI. Among the districts, Jhelum (Punjab) has the highest HDI rank at
0.703 and Dera Bugti, the resource rich district in Balochistan, is the lowest at 0.285.
2.4.3 There exist wide gender disparities in the province. In 2008/09, the GPI for primary education was
0.58 for the province which was 0.26 points below the national level of 0.84. The share of women
in employment in the non- agriculture sector in Balochistan is poorer than in other provinces. In
2009, the female labor force participation (including the agriculture sector) was recorded at 11.4%
as compared to 66% for males. Likewise progress on reducing child mortality is 36% below
national average.
2.4.4 Pakistan Labor Force 2009-10 shows that unemployment rose to 5.6% of the total workforce and
this was slightly higher than the 2008-09 survey. The unemployment in Balochistan was assessed to
be 7.9%. More significantly the quality of employment is worse in Balochistan both in terms of
productivity as well as types of jobs available. The projected increase of population from 8.9
million in 2010 to 12.7 million by 2025 poses a major challenge for policy makers in terms of

improving educational attainments for better employability. According to Balochistan Economic
Report 2008, the labor force in Balochistan could rise to 7.2 million in 2025 and based on the
historic employment elasticity, creating additional 158,000 jobs annually for these workers should
be possible with an annual growth rate of 6.5%.
2.5 Water Constraints
2.5.1 Balochistan is water scarce province with arid to hyper arid climate and low precipitation levels,
Agriculture and livestock are the lifelines of large majority of the people as such water shortages in
the province determine the productivity and incomes in the province. Despite developments in the
water sector, population growth, urbanization, mining sector and industrialization, are posing
greater demands on water resources of the province. The expanding imbalance between supply and
demand, has led to shortages and unhealthy competition amongst end-users, besides causing severe
environmental degradation in the form of: a) persistent increase in waterlogging and salinity in the
Indus Basin Irrigation System (IBIS) area of Pat Feeder and Khirther canals; b) inefficient and
ineffective irrigation management in minor irrigation schemes leading to loss of precious water; c)
lowering of water table and mining of groundwater in the three over-drawn basins (Pishin-Lora,
Nari and Zhob); d) neglect of Sailaba and rain fed Khushkaba farming systems with reduced
recharge to the groundwater; and e) intrusion of saline water into fresh groundwater reservoirs in
the coastal areas and at certain inland locations.
2.5.2 Floodwater is the largest resource of water in the province, almost two-third of total available water
but a large part of this is underutilized and in contrast the ground water constitutes about 4% and it
is over utilized due to lopsided incentive policy regime. Another critical issue requiring attention is
the productivity of the IBIS canal command water together with that of harnessing and storing flood
water for overcoming water shortages in the province.
2.6 Weak Private Sector and Constraints of Trained Manpower
2.6.1 One of the important challenges to growth and development is comparatively small size of private
sector and enterprises and which in turn are constrained on account of multiple limitations. The
private sector growth is impeded on account of limited financial services including banking
services; weak human resource base and small markets.
2.6.2 As per World Bank’s estimates there are approximately 150,000 enterprises in the province and a
large number of these is small and informal. These are in the shape of small traders who cater to the
local demand. Wholesale and retail accounts for about 75% of the total enterprises, whereas in other
provinces it is usually half. These enterprises do not carry any spin off effects with either backward
or forward linkages and nor do these create prosperity. These are predominantly individual owned
informal businesses yielding one or two jobs. More importantly such micro businesses are neither
linked -up with finance, technology or any other resources given the small size of business. Most of
the industry is located in Hub due to its proximity to Karachi and the rice mills are located mostly
in the Jafferabad district. Most of the technological and financial resources are therefore from the
neighboring provinces.
2.6.3 The financial sector within Balochistan is considerably thin in terms of number of bank branches;
presence of SMEs, microfinance and insurance services; the volume of credit disbursed and the
number of borrowers. During 2012 the total bank loans disbursed were Rs.12 billion which
calculated to a mere 8.7% of the bank deposits of Rs.138 billion. The bank deposits have shown a
steady increase from Rs. 71 billion in 2008 to Rs.138 billion in 2012; however the disbursements
have fallen from Rs.15 billion to a dismal amount of Rs. 12 billion. In addition over two thirds of

the bank branches are located in Quetta division with Quetta alone housing 123 branches of the
total 281 in the province. The overall credit disbursement by the SME and Micro finance
institutions is limited at Rs.3.7 billion and Rs.155 million respectively in 2011-12 and the total
number of borrowers are around 22,000 altogether.
2.6.4 Growth of private sector is also impeded on account of non-availability of skilled labor and non-
availability of educated and professional workforce required by modern economies. Labor force is
largely illiterate and most of the skill sets are again restricted to few given markets making slightly
bigger businesses non- viable due to non -availability of many essential skills.
2.7 Security Dimension

2.7.1 The security landscape in Balochistan has become exceedingly complex with the presence of
assortment of insurgents; religious extremists and sectarian groups. Other than the continuing
attacks by the insurgents, a number of religiously motivated militant and sectarian groups have also
expanded their area of operation across Balochistan especially in and around Quetta. There have
been series of unprecedented attacks on the Shia Hazara community in Quetta and their intensity
increased tremendously in early 2013 creating a wave of protests and sit-ins not only by the
affected families and the community but throughout Pakistan culminating in the dismissal of the
provincial government in January 2013.
2.7.2 Since 2008, more than 1997 incidents of target killings/sectarian attacks have taken place killing
more than 1894 people and injuring around 3266. In this period 1875 terrorist attacks have occurred
other than many rocket attacks.4 Simultaneously the issue of missing persons and dead bodies also
remains a burning issue. The GoB has attended to the issuing of beefing- up the security in multiple
ways and there have been significant budgetary increases to provide resources for handling the
complex law & order situation in the province. The Law & Order expenditure has been increased
by over 40% in last three years from Rs. 9.4 billion in 2009-10 to Rs. 13.5 billion in CY.
2.7.3 Government recognizes that the gravity of the situation requires measures beyond just better
deployments and vigilance. It requires a high level of intelligence and greater coordination among all the
civil and military agencies. In addition to the efforts at political reconciliation especially in the
background of fast approaching elections and creating space for the alienated political forces is generally
believed to be the ultimate way towards de- escalation of extremely difficult situation in the province.
2.8 Fiscal Framework
2.8.1 Balochistan has remained entangled in a very tight fiscal situation since decades on account of a
fiscal framework where a large part of the national revenue was being collected at the federal level
and being distributed on population based formula. The province remained at a receiving end
having extremely negligible own resource base to cater for the huge development needs of the
province. The incomes on account of its oil and gas products have also remained low compared to
the type of value these resources have accorded for rest of the country and the private sector. It was
this chronic low revenue kitty and huge expenditure requirements for a scattered population and
inability to finance both the high cost of service delivery including the infrastructure which is
evident from the high levels of under development across the province.
2.8.2 The 7th NFC Award increased the overall share of Balochistan from the chronic 5% of share in the
Divisible Pool Taxes to 9.1% subsequent to the shift away from the population-based distribution
criteria to a slightly multi- criteria distribution. This plus the enlargement of provincial share in the
4
Government of Balochistan; Briefing on Law & Order in Balochistan (2012)

Divisible Pool from 45% to 56% and then 57.5% also impacted the revenue increase. A major
breakthrough has been the acceptance of Balochistan’s long standing demand for arrears of Royalty
and Excise on Natural Gas and the Gas Development Surcharge under which the federation has
agreed to provide these arrears assessed to be Rs. 120 billion in 10- years’ time to the provincial
government for next 12 years.
Table F.1: Balochistan Revenue Post 7thNFC (2010-2013) (Rs. In Million)

Budget
2010-11 2011-12 Growth
2012-13
Federal Tax Assignment 88,191 98,435 114,206 14%
Straight Transfers plus GST on 17,356 17,393 16,860 -1%
Services
Federal Non Development Grants 12,000 12,827 12,870 4%
Tax Receipts 1,156 1,352 1,385 9%
Non-Tax 2,957 3,749 3,822 14%
Total Receipts 121,660 133,756 149,143 11%
Provincial Own Receipts’ 4,113 5,101 5,207 13%
Source: Provincial Accounts 2012-13
2.8.3 This has improved provincial revenues and there has been an increase of 58% in the federal tax
transfers from 2009-10 to 2012-13, which has enabled the provincial government to make required
increases both on recurrent and development side. In post NFC first two years, the average annual
increase in the Federal Tax Assignment has been 14%, whereas the straight transfers on account of
royalties on Oil and gas and development surcharge on gas have remained static in this period
(Table F.1). The provincial own-revenue collection however, constitutes a small portion of the
overall revenue resources of the province. Within last few years there has also been a positive surge
in the provincial own revenues primarily on account of an increase from the royalties and income
from the mineral sector which increased from Rs. 500 million in 2008-09 to Rs. 3.7 billion in 2011-
12; a five-fold increase in three years. All this has helped to increase the overall revenues of the
provincial government from Rs.68 billion in 2009-10 to the estimated Rs. 149billion for 2012-13;
about 120% increase. From 2010-11 onwards the average annual growth in total provincial
revenues is 11%
Table F.2: Balochistan Post NFC Expenditure (2010-11 to 2012-13) (Rs. In Million)
Budget
Heads 2010-11 2011-12 Growth
2012-13
Pay 20,660 38,432 28,982 18%
Allowances 22,972 23,366 22,360 -1%
Pay/Allowances 43,632 61,798 51,342 8%
Pension 3,680 5,500 7,500 43%
Debt Servicing 5,084 3,816 3,341 -19%
Total Estab Plus Debt 52,396 71,114 62,182 9%
Non salary 44,123 31,437 45,096 1%
Current Exp 96,519 102,551 107,279 5%
Development Exp 37,260 43,173 33,198 -6%
Total Provincial Exp 133,779 145,724 140,477 2%
Source: Provincial Accounts

2.8.4 On the expenditure side, the major expenditure is on account of pay and allowances which
presently constitutes 49% of the current revenue expenditure. The pay and allowances plus the
pension and debt servicing together constitute about 58% of the provincial current revenue
expenditure. This leaves 40% for non-salary spending which is a very comfortable space for
operational expenses. However a large part of this has been used for creating development fund for
the mines development. The provincial PSDP presently constitutes 23% of total provincial
expenditure. Despite these revenue increases, the expenditure requirements of Balochistan are huge.
This is not only on account of the backlog on physical infrastructure and human development but
also on account of the fact that given the state of under development and low presence of private
sector, the public sector expenditure will be the major source of investments in the province in
albeit all sectors. Further, given the huge canvas and competing demands, the provincial
government will only be able to improve the effectiveness of public spending if it able to partly
overcome the current trends under public spending.
i. In order to create greater fiscal space for priority sectors, GoB plans to keep the cost of
establishment under control by avoiding unnecessary new recruitments.
ii. Non- salary Budgets require a scientific costing and improvements aligned with adequate
financial management and oversight mechanisms
iii. GoB will evolve a policy framework together with some lean institutional arrangement to
handle the post 18th Amendment matters relating to provincial rights over petroleum
exploration etc.
iv. Development spending will be prioritized for creating the urgently required physical
infrastructure, and channelling appropriate investments in the people’s health and education,
which will trigger a more inclusive growth.
v. Public Sector Development schemes had proliferated to 1452 having a throw forward of Rs. 62
billion. The portfolio has been rationalized recently and the GoB plans to undertake a highly
prioritized and well considered portfolio in coming days.
vi. The current donor funded portfolio is very small having an allocation of approximately of US$
28 million, this is planned to be enhanced subsequent to finalization of BCDS.

03
Governance, Security and
Sustainability

3. Governance, Security and Sustainability
3.1 Governance
3.1.1 The Government of Balochistan and a wider section of the society now generally agree that
Balochistan’s problems have become overly complex due to long neglect as well as multi-
dimensional aspects impinging on the political and security environment in the province. Despite
all odds, the key to restoring political stability and security preponderantly lies in greater
democratization of the governance process. This implies the need to encourage greater internal
democratization processes for a genuine peoples’ participation in the decision making. In addition,
the media and the civil society would be required to play a rigorous role for creating greater
awareness for more robust accountability. One of the encouraging signs during both the 1990s and
since 2002 periods of democratic rule in Pakistan has been the formation of coalition governments
and in the case of Balochistan these have incorporated almost the entire political spectrum in the
province. This can be seen as indicative of the existence of a broad political consensus in the
province, which may now be encouraged to be widened by creating space for the nationalist
parties.
3.1.2 There are several examples from within the region which reflect how improved governance can
change, the speed of development as well as its context. Mr. Nitish Kumar, the Chief Minister of
Bihar, India visited Pakistan in November 2012 and his major discourse during this visit revolved
around ‘governance’. He shared his experiences with the Chief Ministers of Sindh and Punjab
separately and many other political leaders. He was quoted saying, “seven years back we started
our quest for establishing governance and ensuring all around development, which was both a
challenge and opportunity…. With our resolve for growth with justice manifold achievements
have been marked across sectors like governance, law & order, human resource development,
infrastructure and agriculture.….. good governance is the mantra of our growth story …”.5
Box 3.1: Bihar’s Governance experience
Bihar is one of India’s largest and poorest states, with 8.5% of India’s population and only
1.6% of its gross domestic product. Until 2007, economic growth in Bihar was much lower
than the rest of the country. It had dismal indicators with 48% literacy; high levels of IMR
and over 54% underweight children. The state of infrastructure was poor and the common
challenges faced by the province were poor service delivery, lack of accountability and a
dismal law & order situation. It is in this background that Nitish Kumar’s government
initiated wide ranging and home grown reform program. These reforms are being widely
acclaimed and these have helped in spiraling Bihar’s economic growth rate to over 10%
between 2004-05 to 2008-09 from the earlier 4.5% between 1999-00 and 2003-04.
5
Daily Dawn Nov 10, 2012

3.1.2 GoB acknowledges that Balochistan’s deeply entrenched problems require a governance
dispensation which can deliver better quality services and impacts on larger section of the society.
Such governance dispensation can gradually begin to take shape as the new government triggers a
conscious effort to involve greater number of stakeholders in the process for instance;
 At the Provincial Assembly level, prioritize establishment of the Public Accounts Committee
and build the capacity of the PAC to provide meaningful oversight over use of public funds.
 Support creation of an Inter-party Women’s Caucus that articulates the issues affecting
women without reference to party affiliation.
 In order to enhance accountability and transparency, support the development of a

Communication Strategy of the Government of Balochistan for keeping the public informed
on aspects of government business.
 Strengthen the judiciary at magistrate level through direct input in the engagement of
additional magistrates; and provide support to link the formal justice methods with traditional
and alternative dispute resolution methods of the administration of justice.
 Create a dialogue platform for traditional leaders to share experiences and ideas on the
development of their areas of jurisdiction. This platform would provide traditional leaders
with means to collectively approach the Provincial Government on common issues; and to
synergize traditional approaches to administration with modern approaches of the
Government of Balochistan.
 Work with civil society and academic institutions to provide spaces for the public to learn
about their rights, and to encourage participation and peacefully engage in civil affairs of
their community or Province.
3.1.3 Improving governance poses formidable challenges however, the GoB is hopeful that with efforts
at institution building; greater involvement of people and better accountability it will be able to
strengthen governance. Also GoB plans to work with alternate delivery systems for producing
results. There are already some robust examples in the shape of PPHI and BEF, which have been
able to show credible achievements on service delivery. GoB is considering greater partnerships
with private sector for operations requiring speedy decisions and results, such as for development
of minerals; oil & gas sector; industrial estates; harbors; value addition and creating supply chain
and marketing companies etc. Also it considers involvement of communities critical for proper
program designs and for transparent implementation.
3.1.4 The subject of institutional restructuring and civil services reform has been debated at many
forums and the latest in this context; the National Commission for Governance Reforms (NCGR)
acknowledged that the performance of the civil service in terms of efficiency and attitude towards
common citizens does not meet the exigencies of the modern times. Civil Services Reform is
complex and difficult to implement. The GoB plans to streamline the posting and transfers
mechanism; devise systems for recording performances of civil servants.
3.1.5 Improving the financial management will strengthen the provincial internal controls and will
eventually be beneficial for effective public expenditures. The federal government has been
supporting the accounting and reporting reforms under the PIFRA project since last many years.
In Balochistan the process needs to be speeded-up through a greater engagement with the office

of Controller General of Accounts. The other areas requiring attention is; procurement reforms
and the M&E frameworks. GoB plans to seek technical assistance for procurement rules, manuals
and capacity development. On the M&E side, the strengthening of these frameworks will enable
the government to move towards results based management. Also there is seriousness to establish
the Public Accounts Committee, as it’s a constitutional requirement for an oversight over public
expenditures.
3.1.6 In addition the provincial government is required to take up additional and expanded
responsibilities in multiple sectors in the post 18th Amendment to the Constitution scenario. In
this context other than revising the Rules of Business; the Government may also be required to
undertake legislation on certain components though the Government has already taken up
legislation on a few of such components like Article 25A of the Constitution. GoB has already
taken cognizance of the situation relating to the Oil and Gas sector in the context of Article 172
(3) and has initiated creation of institutional frameworks for being able to handle the
opportunities created through this provision. There is however a need to undertake a review of
capacity gaps for handling post 18th Amendment responsibilities adequately.
Strategy
i. Government plans to undertake legislation for “Compulsory Public Information” to

institutionalize greater dissemination of critical information for public. Also there will be greater
efforts to link the community and state institutions & civil society voice for bringing in greater
ownership as well as transparency.
ii. GoB plans to strengthen the Balochistan Public Service Commission (BPSC) for enabling
it to evolve highly credible recruitment system through greater outsourcing of conduct of
examinations; greater use of ICT for efficiency and transparency
iii. Speeding –up the PIFRA reform actions through proactive engagement with the Controller
General’s office. Of the 33 Sites; 25 have already been computerized and there is need to provide
on-line connectivity to the Finance Department for daily monitoring of expenditure and receipts
and creating connectivity with departments.
iv. Undertaking procurement reforms by first re- examining the earlier draft law and developing the
rules; establishing Provincial Procurement Authority and Procurement Unit for regulating the
provincial procurement.
v. Strengthening the Anti- corruption establishment by bringing in experts, better systems for
tracking and creating linkages with procurement reforms and M&E framework.
vi. Constituting Public Accounts Committee as per constitutional requirements.
vii. Establishing Human Resource Management Information System (HRMIS) for an efficient
management of civil servants. From transfer postings, HR development, evaluation and
promotions to be managed on the basis of HRMIS. The posting transfers of senior officers to be
undertaken on the basis of Key Performance Indicators for all departments and evaluating civil
servants’ performance on the basis of KPIs.
viii. A well designed capacity development program for GoB officers in multiple disciplines including
procurement; monitoring; evaluation; reporting etc.

ix. Undertaking pilot computerization of Land Records. The existing system of management of land
records is outdated and does not guarantee reliability of titles and their use as collateral. GoB
plans to begin with the computerization of Land Records in Quetta to establish an efficient,
transparent and accessible system and gradually expand to other urban areas in phases on the
basis of lessons learnt.
x. Computerization of different taxes under the E&T Department.

xi. Unfolding Medium Term Budget Frameworks gradually with one or two departments to move
towards planned and result based budgets.
xii. Strengthening M&E Units of all the major departments through greater use of ICT and improving
real time transfer of information. The Punjab Government has recently introduced the ‘Smart
Monitoring Regime’, by making use of ‘smart phones’ for instance in the Lady Health
Supervisors monitoring in Layyah.
xiii. Greater outsourcing of validation and evaluation for improving accountability.
xiv. Most significantly is involving the community through various forums; groups and in varying
ways for seeking their participation and involving them in the oversight through organized
community feedback mechanisms
xv. The Government of Balochistan would develop a comprehensive Communication Strategy which
would embrace all forms of communication, and especially ensure that innovative modern
information technology methods are fully utilized to reach Balochistan citizens across the
province. Specific and targeted information for the youth and women would be especially
encouraged.
Table 3A; Governance (Rs. In million)

Sr. FY1, FY3, FY5, FY6, Proposed FA
Strategy Total
No FY2 FY4 FY7 Portion
1 Strengthening BPSC 59 16 27 102
2 Strengthening Anti-Corruption
81 65 83 229
Establishment
3 Developing Central HRIMS 126 79 - 204
4 ICT in Revenue Collection (E&T and
147 146 - 292 205
Stamp Duties)
5 Land Revenue Management Information
132 143 224 499 349
System (Phase-1)
6 Procurement Reforms 204 222 37 462
7 MTBF & Results Based budgets 68 62 98 228
8 Capacity Development of Officers 70 77 130 277
9 Strengthening M&E, undertaking TPVs
539 452 727 1,719 1,203
Total 1,426 1,262 1,326 4,012 1,757
(Note: slight calculation differences may arise, purely as a result of rounding off)
88,191 98,435 114,206 14%

17,356 17,393 16,860 -1%
12,000 12,827 12,870 4%

1,156 1,352 1,385 9%
2,957 3,749 3,822 14%
88,191 98,435 114,206 14%
3.2 Security
3.2.1 Although there are more than half a dozen structural constraints to growth and development in
Balochistan, the most forbidding barrier however, is the state of security in the province. The
security scene has become overly complex with the presence of hodgepodge of insurgents;
extremist religious groups and sectarian outfits. Other than the on-going insurgent attacks, a number
of religiously motivated militant and sectarian groups have also expanded their area of operation
across Balochistan especially in and around Quetta. The successive attacks on the Shia Hazara
community in Quetta, which took an unprecedented turn in the beginning of 2013 have shaken up
the social fabric of the city and these prompted a shock wave across the country, which led to
further political instability in the province.
3.2.2 The situation has remained unsettled

Table: 3.1 Target / Sectarian Killings 2007-2012
for more than seven years since it
Target Total
escalated in 2006 and in the last five
years, more than 1997 incidents of Incidents Killed Injured
target killings/sectarian attacks have Police 341 273 413
taken place killing more than 1894 FC 426 301 817
people and injuring around 3266. In Settlers 404 309 392
this period many terrorist attacks have Sectarian 145 419 484
occurred including many rocket Others 681 592 1215
attacks.6 The issue of missing persons Total 1997 1894 3321
is a burning issue and lately the Source: Home Department, GoB
sectarian mass killings through high
intensity bomb blasts have added yet another dimension to the instability in the province.
3.2.3 Government has attempted to respond to the increasingly complicated situation through beefing- up
the security in multiple ways and there have been significant budgetary increases to provide
resources for handling what is proving to be irrepressible law & order situation in the province. The
government has pushed up financial resources to handle the law & order through better policing
however the overall structural and system weaknesses are such which may not yield definitive
results so easily. The budgetary outlays have increased by over 30% since 2009-10, from Rs. 5.8
billion to Rs. 13.5 billion in 2012-13.
Table:3.2 Law & Order Budget 2009-10 to 2012-13

RE 2009-10 RE 2010-11 RE 2011-12 BE 2012/13 Growth Rate
Total Current
Expenditures 52,801.9 73,458.5 85,261.0 107,279.4 27%
General Administration 7,230.3 11,380.7 14,252.6 21,606.0 44%
Law & Order 5,828.4 10,951.4 12,734.4 13,530.2 32%
% of Current Budget 11% 15% 15% 13%
Source: GoB Budget Documents
6
Government of Balochistan; Briefing on Law & Order in Balochistan (2012)

3.2.4 The GoB has already taken some measures to contain the law & order situation; such as:
 Improvements in security arrangements in and around Quetta including greater deployment of

security staff and monitoring.
 Rigorous monitoring of explosives/ other chemicals to contain possible misuse
 Data Compilation of foreigners in the province to ensure adequate arrangements
 Purchase of Scanners and other equipment for Police / Levies
 Re- compilation of the data of Proclaimed Offenders for their arrest
 Greater security deployment from Quetta to Taftan for protecting Zaireens
 Special surveillance of members of banned organizations/ terrorists
 Revival of Levies Force in “B” area.
 Activation of CID to combat crimes & capacity building of Levies
3.2.5 GoB realizes that the gravity of the situation requires measures beyond just better deployments and
vigilance. It requires a high level of intelligence and greater coordination among all the civil and
military agencies. In addition the efforts at political reconciliation for creating space for the
alienated political forces is generally believed to be the ultimate way towards de- escalation of
extremely difficult situation in the province.
Strategy
i. GoB plans to upgrade the capacity of the Intelligence System especially the Intelligence Bureau by
enhancing the use of ICT for multiple purposes including creation of databases of wanted persons;
proclaimed offenders and digitalization of intelligence information. Concurrently the coordination
levels with the military intelligence require improvement for an effective preventive strategy.
ii. Developing a Special Anti –Terrorism Force with state -of -art training and under a dedicated command
and with a different compensation package to create a highly specialized force to handle terrorist attacks,
both the intelligence and attack management. In addition recruitment of 5000 police personnel to handle
requirements of increase in population and greater police coverage.
iv. Speeding up the establishment of a Forensic Lab that was already under consideration with the
Government. It may be set-up through adequate technical support.
v. Finalizing and enacting the “Witness Protection Act’, for strengthening the investigations and
prosecution of terrorist acts.
vi. Revitalizing the investigation system and manpower capacities by evolving a dedicated training
program and equipping the investigation officers with required resources for an effective
investigation system.
Box 3.2: Model Police Stations in Punjab
Punjab is setting-up about 100 Model Police Stations which would primarily rely on ICT
and technological solutions for greater efficiency and transparency. These would for
instance have computerized FIRs, Criminal Records, Record of Case Property,
Recovered Weapons and Police duties etc. The system is expected to provide a
central source of data for easy access to all the cases and current investigation
information to internal as well as external stakeholders.

vii. Strengthening the Police Stations by upgrading the physical infrastructure, the telecommunication
system and introducing ICT for creating data bases of convicts, proclaimed offenders, suspects, etc.
viii. Enhancing the operational resources of the Police as well as Levies on the basis of scientific
baseline. These include resources for greater mobility, allowances, arms & ammunitions, wireless
systems, etc.
ix. Government has already initiated an intervention to install CCTVs for installation of 500 plus
cameras covering whole city of Quetta along with Entry/Exit gates on 06 locations together with an
entire implementation plan including design and management of control room and its allied
facilities. This was planned and proposals were being solicited. On successful implementation such
systems may be installed in other major cities and specific installations which are in the high
sensitive zones.
x. In addition to above following steps are recommended towards managing security
 In order to improve civil/military relations, support the training of police and levies in
community policing. Support the introduction of human rights training into the curriculum of
military and staff colleges in Balochistan.
 Establish Civil- Military Liaison Committees that can serve as the conduit for communication
between the armed forces (Army, FC, Police and Levies) on the one hand and the public on
the other.
 Establish “Peace Dividend” programs in areas where peace has or is being established. This
would entail social and micro-business programs for the youth and women.
Table 3B:Security (Rs. In million)

Sr. Strategy FY1, FY3, FY5, FY6, Total Proposed
No FY2 FY4 FY7 FA Portion
1 Strengthening Intelligence Bureau 294 236 328 857 600
2 Special Anti-Terrorism Force &
2,029 1,848 3,078 6,955 2,086
additional 5000 police personnel
3 Strengthening Prosecution 200 200 200 600 -
4 Establishment of Forensic Lab 1,365 267 390 2,022 1,011
5 Installation of CCTVs in Quetta
930 542 371 1,843 -
and other Sensitive Points
6 Upgrade of Police Station' physical
851 1,028 988 2,866 -
infrastructure and ICT
7 Enhancing resources (vehicles;
Telecommunications; arms & 800 1,500 3,440 5,740 -
ammunition; other equipment)
Total 6,469 5,621 8,795 20,883 3,697

04
Social Safety Nets and
Pro- poor Initiatives; Upfront

4. Social Safety Nets and Pro- poor Initiatives; Upfront
i The GoB is cognizant of the gravity of situation and is keen to unfold a robust poverty reduction
program, which can have speedier and wider impacts, upfront of the CDS. The latest SDPI research
on multidimensional poverty shows that the poverty levels in Balochistan are extremely high
where overall 52% of the households are under poverty and of these three fourths of the households
(72%) are in rural areas. Given these scales and the state of economy plus the security dynamics
which apart from other factors is also fuelled by the state of deprivation, it is only logical to bring
the poverty reduction programs upfront. Bringing these interventions ahead of the CDS is likely to
create a greater buy-in amongst a wider section of the society as was witnessed in the case of
creation of 5000 jobs under the Aghaz-e-Huqooq-e Balochistan package. This is reinforced by the
fact that most of the other components of CDS including human development, infrastructure
upgrade and the economic revival would require some time to evolve and translate into benefits.
ii The Government recognizes that these programs need to be designed with care having clarity about
objectives; appropriate designs and implementing mechanism which can ensure slightly less
complicated and more credible reach out for target beneficiaries. It is recognized that one of the
popular strategies adopted by many countries for reducing poverty is direct cash transfers such as
the Benazir Income Support Program (BISP) in our country. Within BISP, however there is now a
gradual shift towards interventions that can create sustainable livelihoods for poor such as by way
of skill development or micro-enterprise development.
iii As a part of this strategy, the GoB plans to develop a union council-wise database of the various
categories of poor for using it for a range of interventions. This would be initially borrowed from
the BISP Poverty Assessment Survey and subsequently maintained; updated through a dedicated
institutional set- up within P&D Department. Availability of a credible data would enable the
government in better targeting and monitoring of a wide range of programs other than the pro poor
interventions. This will also act as a baseline for evaluating impacts.
Priority Areas
4.1 Evolving Stipend Based Skill Development Program
4.1.1 Given the exigency to provide some form of income to the youth both educated as well as
uneducated and simultaneously the need to develop a skilled workforce, GoB plans to evolve
stipend-based skill-development programs. These will carry twin benefits of providing temporary
incomes which will work as social safety-net and will incentivize the target beneficiaries to
undertake the technical/ skill development programs which can enable them to get some gainful
employment for sustainable livelihoods. The GoP had earlier implemented a National Internship
Program under which stipend-based internships were provided to eligible graduates across Pakistan.
4.1.2 The overall strategy for reducing poverty through skill development programs will however hinge
on the way this intervention is designed and managed. GoB plans to target the youth both young
girls and boys. There can be two segments; one which is designed for the educated and other for the
uneducated in a range of fields and sectors which are likely to have greater chances of employment
in the province. Further, given the constraints of availability of quality training facilities in the
province, it is desirable to plan a greater part of these trainings in collaboration with Federal
NAVTEC and the three provincial governments for placement of the selected beneficiaries in
quality training institutions under provincial TEVTAs. Also the GoB may directly seek proposals

from some of the larger autonomous skill development and training institutions in the public/private
sector.
4.1.3 Another segment of the stipend based skill development program would be the internship programs
in collaboration with the oil & gas sector and with some of the major industries in the provinces.
These would be preferably financed by the provincial government in order to evolve a
professionally designed program which can be carried forward without burdening the potential
partners. The provincial government would however consider utilizing the Petroleum Bonus funds
for financing these interventions. Both these interventions would take extra care to include a
maximum number of women candidates and ensure a compulsory participation of at least one third
of available slots.
4.2 Women Focused Skill Development
4.2.1 The GoB acknowledges that

women empowerment will be
critical for any poverty reduction
program, without which
Balochistan will not be able to
move out of the vicious circle of
poverty and under development.
GoB firstly, plans to maintain
some minimum quotas for women
beneficiaries under the stipend –
based skill development
interventions. Secondly, two
dedicated skill development
streams; one for training of
nurses/midwives and the other for
a wider coverage of beneficiaries including components of microfinance and skill development in
crafts as well as other livelihoods is being planned to be initiated for women. The nurses/midwives
training will improve employability chances of women and will provide the direly required
workforce for health sector.
4.2.2 The second intervention could be “Women Focused Micro-Finance for Crafts & Other
Livelihoods”. This can be carried forward in collaboration with MFIs. It needs to be borne in mind
that alike other constraints; the disbursement of microfinance in Balochistan has also remained low.
There are only 23 MFP offices, 18,000 active borrowers and the volume of microfinance disbursed
is pathetically less than 1% of the amount disbursed nationally. The basic arguments for this
exclusion are the high transaction costs; high risks perceived due to non -availability of collateral
and lack of credit history and low volumes of credit amongst others. Lack of financing for
Agriculture; livestock; fisheries; crafts as well as other sectors is believed to be a major constraint
to enterprise development and its expansion in the province.

Table 4.1: Microfinance Scenario; Pakistan Sept 2012
Province Offices Active Micro Credit MF Potential (No. of Penetration

Borrowers (Rs. In million) Borrowers) Rate (%)
Balochistan 23 18,256 166 1,656,762 1%

KPK 55 72,224 877 4,083,817 2%
Punjab 1,164 1,635,923 26,073 15,233,924 11%
Sindh 490 622,797 10,147 6,357,795 10%
AJK 26 30,352 296 - -
GB 15 10,459 361 - -
FATA - - - - -
ICT 7 4,149 54 74,750 6%
Total 1,780 2,394,160 37,974 27,407,048 9%
Source: Pakistan Microfinance Network
4.2.3 The “Women Focused Micro-Finance for Crafts & Other Livelihood” would concentrate on
providing ‘design and precision trainings in crafts’ and developing small enterprises through market
linkages. The ultimate aim would be to develop the crafts gradually into a full-fledged industry, this
may be slightly a long-term objective, however given the size of this sector and the number of
women involved in this component, a well-conceived and adequately implemented intervention can
be beneficial for a large segment of poor women in Balochistan in partnership with RSPs and
PPAF. A holistic intervention can be undertaken in partnership with PPAF, MFIs and RSPs for
targeting about 50,000 women.
Box 4.1: Punjab's Partnership with 'Akhuwat' for Micro Credit Program
Government of Punjab has initiated a Micro Finance Self Employment Scheme for
unemployed and skilled youth with a sum of Rs. 1 billion for providing interest free credits
through Akhuwat, a reputable microfinance institution. Akhuwat is fully responsible for
loan processing, disbursement and recovery. The average loan size is Rs. 50,000, with a
repayment period of three years. The scheme is expected to provide finance to skilled
youth for initiating their micro enterprises.
4.2.4 In addition, GoB plans to establish Microfinance Bank for partially overcoming the constraints of
availability of microfinance in the province. GoB would explore possibilities of partnership with
private sector by making an equity injection in the investment, however in case of not being able to
find appropriate partnership it would move ahead and create the Bank after a proper feasibility. It
will be established on proper commercial lines by bringing in qualified personnel and internal
control systems. The GoB would also create an endowment for providing subsidized credit for well-
targeted poor beneficiaries.
4.3 Strengthening and Expanding Existing Poverty Reduction Programs
4.3.1 GoB is already implementing a poverty reduction program through livelihood improvement in 9
districts of the province. This is co-financed by UNDP and GoB and some components have been
financed by Australian Aid; WFP and Bait-ul Mal. It was started in 1999 and was extended into

second phase in 2007. It is an integrated development program aiming to reach out to 90,000 poor
in the target 9 districts for increasing agriculture, livestock productivity, improve access to social
services, develop vocational skills, conserve natural resources and strengthen communities with
focus on women. The program is probably being considered for Phase- 3 and at this stage it will be
desirable to review and redesign the program especially in the context of thin spread of resources
and connecting beneficiaries with small enterprises for higher impacts. GoB can partner with more
than one implementing RSPs so that it is easier to implement a more intensive program with much
wider outreach.
4.3.2 Similarly, the IFAD supported “Gwadar-Lasbela Livelihood Support Project” aiming to improve
livelihood of small fishermen households too would be speeded-up. The community mobilization
programs generally take significant time to take off, however given the fact that the RSP concerned
namely NRSP has a regional presence, it can be approached to fast track the community
mobilization base work for a slightly speedy implementation of other components.
4.3.3 The scale of Zakat disbursements is very small in the province about Rs. 200 million. Also its
disbursements alike other federal and provincial entities is staggered into multiple components
including ghuzara allowance, education stipends, Madaris, health care, marriage allowance and
rehabilitation grant. Other than being small amounts, the identification of mustahqeen is also not
based on any survey etc.
Strategy
i- GoB plans to set-up a lean and dedicated institutional set-up, a PMU within P&D department for
institutional management of the Pro- poor programs. The Unit will develop a data base of the poor in
the province. A beginning would be made by getting the poverty assessment data from the BISP and
developing it further and updating it regularly for a range of activities from; i) using the data as
baseline for various interventions, ii) program targeting and monitoring impacts. This can
subsequently be shared with line departments for various other interventions such as immunization,
MNCH, enrolments, housing, credits etc.
ii- Undertaking a stipend-based skill development program for the educated and the uneducated youth
in a range of fields likely to have greater chances of employment in the province. Given the
constraints of availability of quality training facilities in the province, GoB plans to undertake this
program in collaboration with range of partners including NAVTEC, the three sister provincial
governments and provincial TEVTAs; private sector training institutions. GoB plans to target a
minimum of 30,000 youth in the province for this skill development program in next three years.
iii- Evolving and implementing internship/training programs for 5,000 youth in collaboration with the
Oil & Gas companies as well as other major companies in the province. The terms of partnership
can be flexible to suit different partners however the GoB to finance the cost of stipend and living
expenses of trainees. Partnering companies would be approached to bear the cost of
internship/training.
iv- Establishing partnerships with private sector especially major Oil & Gas and other companies for
operating a few selected technical/vocational training institutions in the province. These to be
operated under management contracts with clear roles, responsibilities and targets.
v- Evolving a well- designed program for providing quality training for 1250 nurses and midwives in
collaboration with some major health providing institutions having state-of art capacity for such
trainings.

vi- Bringing together a consortium of MFIs for evolving a “Women Focused Micro-Finance for Crafts
& other Livelihoods” program for 50,000 women. For this either SBP would be approached to
evolve a special credit insurance scheme which can be partly co-financed by GoB.
vii- Establish Microfinance Bank either in partnership with private sector and design it appropriately on
commercial lines with adequate systems and with dedicated funds for subsidizing the credit for
poor on the basis of notified transparent criteria.
viii- Expanded Area Development Program through RSPs and other partners to target 200,000
households with focus on women.
Table 4A: Pro- Poor Programs (Rs. in million)

Sr. Strategy FY1, FY2 FY3, FY4 FY5, FY6, Total Proposed
No FY7 FA Portion
1 PMU and Data Management 50 70 180 300 -
2 Skill Development Through TEVTAs 1,200 2,400 3,600 7,200 -
3 Internship/Training Program with
150 200 400 750 -
Oil& Gas & others
4 Women Nurses/ Midwives Training 600 700 860 2,160 -
5 Women Focused Microfinance with
500 1,000 1,000 2,500 2,500
support of RSPs/ PPAF
6 Expanded Area Development
1,500 1,500 2,000 5,000 4,000
Program
7 Establish a Microfinance Bank 2,000 2,000 4,000 8,000 -
Total 6,000 7,870 12,040 25,910 6,500

05
Service Delivery

5. Service Delivery
5.1 Education Sector
5.1.1 The Government of Balochistan recognizes the critical importance of education towards its vision
for inclusive growth in the province. The education sector is presently beset with similar pattern of
lagging behind as other sectors of the economy. It is confronted with the challenges of low literacy
and enrolments, high level of dropouts from the schooling system particularly at primary level,
high repetition rates, low completion rates, acute regional and gender inequalities, teachers’
absenteeism, closed/dysfunctional schools all leading to unsatisfactory performances. On the
demand side, poverty, illiteracy and at times cultural practices affect household decisions to send
children to school. These factors also impact the ability of the population to demand an appropriate
level of service delivery and to undertake school performance accountability. On the supply side,
low investments and weak management and delivery systems have led to dismal results.
Priority Areas
Issue of Access; School Participation
5.1.2 The level of school participation in Balochistan is significantly less than other three provinces. The
school participation rates at all levels are low especially for girls. Only 20% women in Balochistan
have ever attended school and 13% women have completed primary or above. The primary Net
Enrolment Rate (NER) in the province is 47% compared to the national NER of 57% at this level.
The participation at middle school level and secondary are worst. NER at middle level for age
groups 11- 13 reduces to 23.5% and at secondary level it reduces to 12.5% for age groups 14 to 15.
The NER for girls at middle and secondary level is only 13% and 4% respectively (Table 5.1).
Table: 5.1 Comparative Education Indicators Pakistan

Gender Punjab Sindh KPK Balochistan
Pop. that ever attended school M 72 72 71 61
F 53 47 35 20
Pop. that completed primary or above M 60 62 57 48
F 44 40 26 13
NER Primary (6-10) M 73 68 71 68
F 68 55 56 40
NER Middle (11-13) M 38 39 40 34
F 32 32 25 13
NER Secondary (14-15) M 24 26 23 21
F 21 20 14 4
Literacy Rate 15+ M 67 71 65 56
F 47 43 28 15
Source: PSLM 2010-11
5.1.3 A comparison of participation rates in Balochistan since last 6 years exhibit some progress however
the pace of progress is painfully slow as at this pace the province is neither likely to meet the
MDGs nor will it be able to overcome the vicious cycle of deprivation and under development. In
last 6 years the literacy rate has inched from 38% to 45% and the primary NER (5-9)has moved
from 37% to 47%. While it does reflect some progress, this is much below what is required to poise
Balochistan for a steady growth path. At both age groups for middle level there is a clear decline

from the primary level NERs reflecting high dropout rates; which declines further at the secondary
level (Table 5.2).
Table: 5.2 Net Enrolment Rates (2004-05 to 2010-11)

2004-05 2005-06 2006-07 2007-08 2008-09 2010-11
NER Primary (5-9) 37 34 41 41 44 47
NER Primary (6-10) 44 39 50 51 54 56
NER Middle ( 10-12) 8 7 9 12 11 13
NER Middle (11-13) 17 14 19 22 22 25
NER Secondary(13-14) 5 5 5 5 5 6
NER Secondary(14-15) 9 10 10 12 11 14
Source: PSLM 2004-05 to 2010-11
5.1.4 As per Balochistan Education Management Information System (BEMIS) 2010-11, the total
enrolled children in Balochistan in 2010-11 excluding the katchi class was 998,581. In addition, the
number of children in Madressas’ and in private sector has been estimated to be 83,000 and
200,000 approximately7. According to NEMIS 2008-09 data, the number of private schools is 871
and enrolments are 191,380. All in all, the total enrolled children add up to approximately 1.32
million and roughly 1.3 million children being out of school (projected population of age cohorts of
5 to 9 and 10 to 14 years in 2013 is 2.6 million).
5.1.5 The Balochistan Education Foundation (BEF) has lately exhibited a robust participation in the
education sector with the support of World Bank. It has evolved partnerships with both private
sector owners of low fee schools as well as local communities under the Community Schools
Program (CSP). BEF is presently supporting 648 community schools and 207 private sector
schools. Community Schools are set up when at least 20 students can be enrolled by the community
and there is no girls’ school within a radius of 20 km. The program is implemented through
community organizations and BEF monitors performance of schools on the basis of certain
indicators. Under both the streams, BEF has by now enrolled about 48,000 children.
Infrastructure Gaps
5.1.6 An important constraint of access in

Balochistan is non-availability of school
infrastructure. Only about 10,000 settlements,
out of the 22,000, have schools available and
the issue of distances remains a challenge.
Again of the 12,293 schools in the province,
87% are primary schools; 8% are middle and
5% are high schools. Of the 10,668 primary
schools; an overriding number have only one to
two room structures having one/two teachers.
These are thus multi-grade teaching schools having scanty infrastructure and almost no budgets
except the teacher salary. Hence other than non- availability of schools in about half the
settlements, the schools available have bare minimum of resources. Approximately 57% schools
have no drinking water, 46% no boundary wall, 52% no electricity and 29% are without a toilet
facility, while 9% are without any shelter.
7
Policy Analysis of Education In Balochistan, UNESCO, 2011

Learning Outcomes & Teachers
5.1.7 GoB has lately added 5000 teachers to the sector taking the strength to 48,346. While the BEMIS
2010-11 shows an average Student Teacher Ratio (STR) of 1:21, in reality there is no credible
system in place which can confirm teacher presence in schools. Reportedly, a large number of
teachers are either formally on leave or informally away. All in all, one of the major challenges of
the education sector is absence of a system that ensures that the schools are functional. This is
despite the fact that the province spends approximately 17 to 18% of the total budget on education
of which over 86% is salary expenditure; which unfortunately is not converting into service.
5.1.8 The school system across Pakistan does not focus on the learning outcomes as issues of access have
predominated. There is a general perception that most of the quality inputs encourage rote learning
including teachers and the assessment systems. The textbooks in vogue at all levels have remained
stagnant now for over a decade despite the National Curriculum 2006 policy framework, which presents
a wide landscape for development of textbooks which can be more responsive to current times. GoB
under this strategy is considering gradually adapt the 4 –year B.Ed program by moving away from PTC
and CT qualifications. Presently, GoB has initiated a process for adoption of standards for pre‐service
teacher education with the assistance of the USAID funded ‘Pre‐Step Project’.
5.1.9 The GoB has lately evolved an Education Sector Plan (BESP) emphasizing on quality of education
for sustainability and equity. The BESP recognizes the importance of private schools and has
included this component in the sector plan. It incorporates the existing programs into its fold such
as the ECE component developed by Save the Children; the pre- service component is based on the
Pre -Step project and the community schools component is based on the World Bank supported
Balochistan Education Support Program. The Plan recognizes the issues of low investment and
governance problems. It recognizes that GoB needs to improve enrolment significantly to build a
momentum towards universal education and that this may require public private partnerships and
other strategies beyond the routine.
Education Spending
5.1.10 Government recognizes that it needs to undertake innovative and bold decisions for taking a quantum
leap forward in improving enrolments and quality of education. This will necessarily require increase in
investments both on the recurrent side as well as the development budget side. Currently GoB is
spending 16 to 17% of provincial expenditures on education (Table 5.3). This needs to be scaled- up
significantly for at least next 10 years to provide the required funding for the sector.
Table: 5.3 Balochistan Education Expenditure 2006-07 to 2011-12 (Rs. In million)

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
Grand Total Expenditure 48,395 55,486 63,239 68,731 128,855 144,473
Total Education 8,506 8,729 11,635 13,528 19,409 23,981
Primary 3,008 3,402 8,559 9,909 7,456 7,683
Secondary 2,370 2,559 332 160 6,567 9,791
University & College Edu 568 668 1,563 955 3,155 3,895
Tech. Edu &Teacher Training 330 366 473 536 30 50
Others/ Administration 2,230 1,734 708 1,968 1,008 1,271
Education as percentage of 18% 16% 18% 20% 15% 17%
Total Budget
Source: GoB Accounts 2006-7 to 2011-12

Strategy
GoB has moved forward in last few years and by now it has developed an Education Sector Plan with
detailed planning framework. The BCDS reiterates the major components of the BESP and highlights a
few additional structural changes for catching up on the big gaps in the sector:
i. Improving Access to Education
With a view to overcome infrastructure gaps for enhancing the access to education for gradually
meeting the commitments made under Article 25A. Towards this objective, GoB plans to enroll a
minimum of 500,000 children in next five years through multiple interventions and players. The
GoB strategy lays down the priorities as under:
a. School Expansion Under ‘Community School Model’
Based on a proper mapping of schools and out of school children, the Government plans to
establish, ‘Community Schools’ in the locations not having any school facility in the
vicinity and having eligible children. These schools would be primarily considered for areas
having low population density where establishing a regular primary school is not economically
viable. Under this approach the building for the community school is to be provided by the
local community and the GoB will finance the cost of the teacher, who will preferably be hired
from within the community. GoB will undertake the teacher’s training and involve the
community in oversight. Under this component, school locations will be prioritized on the
basis of an agreed criteria and preference will be accorded for female schools.
b. Utilizing Existing Capacity and Making Schools ‘Child Friendly’
There will be emphasis on improving utilization of existing schools by way of monitoring

enrolments for ensuring that existing schools are fully utilized. Given the fact that about 96%
of primary schools have 2 rooms or less, the GoB will gradually provide 5 rooms to all the
primary schools in phases by prioritizing the schools with higher and potential enrolment.
These steps are envisaged to be critical for moving towards universal enrolments for
compliance with the Article 25-A.
In addition, the GoB would undertake concrete steps to improve the overall school
environment both through improvements in school designs; better upkeep maintenance and
gradually providing missing facilities. On the software side dedicated attention will be given
to curb tendencies towards corporal punishments or any other form of child abuse. For this
serious efforts would be made to ensure that the teachers exhibit a caring and friendly attitude
towards the children by making this a part of their CPD programs and subsequently evaluating
this through monitoring and assessment components.
c. School Up-gradation
Given the steep structural pyramid where of the 12,293 schools over 87% schools are primary,
the Government will undertake a well-planned up-gradation of schools based on surveys and
examination of the demographic data. BESP envisages a ratio of 1:3 for middle to primary and
a ratio of 1:2 for secondary to middle for undertaking up-gradation of schools. Given the
scattered settlements and sparse population in Balochistan, it may at times become difficult to

comply with these ratios however, the Government is clear that gradually opportunities for full
schooling will be made to all parts of the province based on adequate need assessment.
Government of Balochistan has further approved up- gradation of a few select high schools to
higher secondary level in view of severe shortage of opportunities for college education in
large parts of the province. This up -gradation is planned to be undertaken after proper need
assessment including sensitivity towards availability of opportunities for female students and
subsequently creating required infrastructure and providing facilities in the existing high
schools.
d. Early Childhood Education (ECE)
GoB is conscious of the benefits of ECE as a foundation for quality education and under the
strategy it plans to move forward towards the objective of gradually institutionalizing the ECE
in all primary schools in phases. Under this it is planned to evolve a ECE policy framework,
increase awareness amongst policy planners and implementers and gradually execute the
program in phases after creating the required infrastructure and services including availability
of teachers and training materials.
e. Inclusive Education
Moving forward on the objective of “Inclusive Education” GoB plans to gradually create
opportunities of schooling for children with special requirements and/or having any disability.
This is planned to be undertaken by initially creating awareness and developing greater
understanding of the requirements. This would be followed-up by creating necessary
institutional framework including availability of classrooms; trained teachers; training
material; other facilities for introducing these opportunities in the schools at all levels in
phases.
ii. Education Quality and Child Learning Outcomes
a) Merit Based Teacher Recruitment with preference for Local Teachers
GoB plans to hire local teachers preferably female teachers for the proposed, ‘Community Schools
’ under its strategy to expand the availability of primary school facilities to all the eligible
children in the province. For this particular initiative as well as for other categories and levels of
teachers, the GoB plans to henceforth recruit teachers through a third party test for installing system
of merit in the province. Preference will be given to female teachers for primary levels. For the
junior and high school teachers the overall qualification requirement will be raised with greater
emphasis on subject proficiency.
b) Preparing & Implementing Curriculum Implementation Framework
The 18th Amendment to the Constitution has devolved the responsibility of curriculum to the
provincial governments. Accordingly the GoB is initially faced with the challenge to implement
the 2006 curriculum, which requires strengthening of the capacity of the Education Department
and its attached offices especially the BoC, BTBB and the PITE. Under BESP, GoB has planned
an implementation framework involving an implementation process which includes an organized
dissemination of the curriculum; initiating the process of textbooks’ development in accordance
with the prescribed policy and then finally undertaking in-service as well as pre-service teachers

training on the new textbooks. The process subsequently involves raising the capacity of the BoC
to be able to review the current curriculum and gradually gain the technical expertise for bringing
innovative changes in the curriculum subsequently.
c) Text Books’ Revision and Publishing through Out-sourcing
The Balochistan Sector Plan calls for revision of National Textbooks and Learning Materials
Policy and its adaptation as per provincial needs. Additionally, it specifies timelines for
developing standards for textbooks and mechanism for feedback and review and finally their
development in accordance with the National Curriculum 2006. The National Textbooks Policy
2007 envisages textbooks development through private sector developers and publishers rather
than the Textbook Boards, which are now required to regulate the process of textbooks publication
through a competitive process. The GoB has begun the process for publication of textbooks within
the parameters of 2007 policy (as adapted for Balochistan).
The GoB accordingly plans to improve the capacity of the BTBB especially in the context of its
revised role of a regulator and it also plans to involve the private sector publishers in the capacity
development programs for gradually increasing their capability to participate in this process
through multiple innovative ways. Under the strategy, the GoB plans to undertake professional
development of the in-service teachers on the new curriculum and textbooks as well as its
introduction in the pre-service trainings.
d) Teacher Development Program
The existing teacher training programs both in-service as well as pre service suffer from various
institutional weaknesses, most significant being that these have now little relevance to the
education standards envisaged at various levels and the impact of these trainings on children’s
learning levels. The overall capacity of PITE as well as the elementary colleges remains weak in
this context. For the in- service teacher training; the strategy thus includes:
 Undertaking a teachers’ competencies baseline especially in terms of their capacity

relating to the curriculum
 Developing a Continuous Professional Development (CPD) program based on the
teachers’ competencies assessment. This includes developing the capacity of PITE in
developing and executing a systematic CPD program through a well-organized teachers’
selection based on database and subsequently evaluating the training impacts through
class room level assessment
For the pre-service teacher training the strategy focus is to:
 Gradually expand the Pre- Step ADE and adapt the HEC developed curriculum for the 4
year B.Ed program in phases and phase out the PTC, CTC and 2 year B.Ed after 5 years.
 Encourage the existing teachers to undertake these programs
 GoB to consider legislation for institutionalizing regulation of the degree awarding
institutions as well as the private sector pre- service training institutions for ensuring their
compliance with the prescribed standards for pre- service training programs. This entails an
extensive capacity development of the BoC and strengthening of the elementary colleges.

e) Strengthening School Assessment System
GoB recognizes the need to increase the accountability of school performances measured in
terms of child performances. The school level examinations have little credibility and the
Board examinations happen at the end of school years and are also riddled with serious issues
of credibility. Regular and credible Student Assessment System can provide numerous
benefits to all the stakeholders. Such Assessment is likely to yield regular information on
child learning levels for the administration; the parents and the communities. This information
can further assist the education managers in improving the teacher inputs; the training content
and materials for making the teaching and learning more effective. This information can also
ultimately become the major monitoring and accountability tool for the administration and the
parents. Many countries have experimented with universal third party school examinations for
credible assessment of child attainments at certain grade level such as grade 6 and 8
(reflecting on primary and middle school level learning).
In this background, the GoB plans to make the Internal and External Assessment systems
more effective and in coming years consider evolving more credible system of Student
Assessment as a permanent and institutionalized feature to help parents and community to
hold the teachers, school management and the government accountable on its performance. Its
objectives are to link the mostly input driven reform agenda to outcomes; to use the process
and results of Assessment to affect attitudinal changes in teachers, for instance helping them
to graduate from rote learning model to teaching mode that help to inculcate analytical skills
in pupils. This is expected to evolve as a major monitoring tool for determining school
performances including the overall performance of school level management; the teachers
performance and overall school environment and whether it contributed to learning
attainments or not.
iii. Governance and Management
a) Strengthening School Management System
For strengthening school level management, GoB would explore possibilities of creating an
Education Executive Cadre with two sub cadres; a) District Planning and Management and b)
Head Master Cadre. These will be created by fresh hiring through BPSC.
a. In phase- 1; 3000 head teachers will be hired for providing dedicated heads to existing and
new schools having bigger enrolment.
b. For District Management and Planning side, GoB would hire Education Managers through
competitive examination. These positions require technical know-how of management;
finance & accounts; procurement; monitoring etc. These skills are not available in the current
staffing
b) Empowering Schools’ Administration at School Level
It is impossible to locate teachers and provide other resources in a cost effective manner in
thousands of scattered shelter less, one room/ two room and one/two teacher schools. The multi-
grade teaching in large number of schools cannot possibly provide any desirable levels of
children’s attainments. It is thus important to restructure the existing school structure and one of
the major policy shifts envisions school consolidation and greater school level autonomy and

accountability. One of the most important components is to “Strengthen School Administration at
School Level”. At present the school administration is non –existent. The school administration
has little say on budget disbursement, on teacher transfers and other school matters. It is thus
critical to empower school level management in budget and other school affairs in phases
beginning with the bigger schools.
a. Appoint dedicated head teachers/ principals in schools in phases

b. Provide financial powers to school head teachers/principals.
c. Provide chowkidar and sanitary staff in these schools.
d. Principals/ head teachers to be empowered to recommend transfers of non-performing
teachers; which should be binding on the competent authority.
e. Accountability process be instituted for head teacher’s performance and non-performing head
teachers be transferred/ show caused for serious action.
f. An independent Student Assessment System to be the major tool for evaluating school
performance.
c. Increase in School Non-salary budgets:
Historically, most of the schools have received paltry sums in non-salary budgets. GoB plans to
increase the non-salary budgets of schools in phases beginning with bigger schools and after
instituting adequate systems for managing and monitoring the school expenditures at school level.
The increased cash inflows will be backed up by capacity building, administrative and regulatory
reforms aimed at making school level management accountable to communities and
simultaneously out-sourcing monitoring of expenditures. The non-salary budgets would finance
costs of learning materials; repair maintenance and cost of transportation for children coming
beyond a given distance.
The determination of school budgets; their disbursement and a well-designed monitoring system
would be required to be put in place to oversee transparent usage of School Specific Budgets
subsequent to increase in the Non salary budgets and creation of a school management structure
having the drawing and disbursement powers.
d. Strengthening the Institutional Capacity
 Education Management & Information System
The BEMIS constitutes the major foundation for policy planning in the province and over the
years the Education Management Information System has been improved under various
initiatives. There is however a need to strengthen the overall capacity of this unit in multiple
areas for strengthening the credibility and timeliness of the data as well as to use the
information as a monitoring tool. Other than organizing dedicated trainings for various
components of the Annual School Census including improvements in the survey forms; the
survey mechanisms and data compilation, the capacity development will also focus on
improving the systems for improving the timeliness of data. The district tiers capacities and
systems will also be improved.
 Regulation of Private Sector & Madressas
The GoB plans to undertake the regulation of the private sector schools as well as the
Madressas in the province towards the overall objective of holistic education management in

the province. The Government would subsequently engage with the Madressas for considering
adoption of the National Curriculum in their studies.
 Monitoring and Evaluation
GoB plans to strengthen the M& E framework significantly for ascertaining the school
performances on the basis of regular internal assessment and evaluation. Other than
strengthening of School Assessment system; the capacity development of BEMIS, the GoB is
considering to introduce ICT based monitoring system for a very close and institutionalized
oversight mechanism especially in the context of teachers’ availability; student attendances;
lesson plans covered and follow up on school calendar etc.
iv. Literacy and Non -Formal Education
GoB strategy envisages a much stronger Non-Formal Education (NFE) system for achieving the
targets of Article 25- A. In this regard it plans to encourage institutional coordination between the
NFE and the functional literacy programs. It further envisages a Non -Formal Sector under the
aegis of the Education Department for being able to provide accelerated learning programs to the
children who have either dropped out or have remained out of school.
The plan envisages development of a policy framework with a focus on the adolescents and the
youth. This requires institutional strengthening including availability of better trained teachers and
more effective training materials and an outcome based approached towards the subject. It also
entails significant expansion as currently the NFE component’s reach out is limited.
v. Institutionalizing Public Private Partnerships
GoB recognizes that it needs to partner with the private sector to reach out to large number of out
of school children on urgency basis. Under this:
a. Strengthen BEF efforts to support enrolment of a minimum of 200,000 additional children
under both the streams i.e. Community and Private sector by reinforcing the quality
components further through teacher support; learning materials as well as stronger student
assessment system etc. The BEF would need to examine the current performance of private
school partners and evolve innovate methods of raising standards by strengthening the
performance based contracts and also stepping in to undertake private sector strengthening.
b. GoB would simultaneously explore possibilities of performance based partnership contracts
with some reputable and bigger private sector educational institutions for establishing new
schools and/or long term performance-based management contracts of some existing
government schools under low cost private sector model to enroll additional children on per
child cost basis. These contracts would be monitored either through BEF or a separate
regulatory board.
v. Strategic Interventions
a) Introducing IT in all Middle & High Schools
GoB plans to introduce IT teaching in all the high and middle schools in the province. With a view
to install an accountable and quality training mechanism, GoB plans to out-source this to private
IT Companies on the basis of competitive bidding on per child basis. This intervention will

provide the province a more IT literate population, which will hopefully provide a greater impetus
to development in coming days.
b) Introducing Remote Area Allowance for Teachers

GoB would introduce remote/ difficult area allowance to incentivize availability of teachers and
other staff in all parts of the province.
Table 5A School Education (Rs. in millions)

1 Access & Equity 9,163 15,010 14,232 38,405 19,202
2 Early Child Education 308 2,702 2,596 5,606 4,485
3 Inclusive Education 30 84 75 189 151
4 Quality Education 1,765 1,150 656 3,572 2,857
5 Textbooks development &Publication 615 678 1,150 2,443 1,954
6 Teacher Development 103 113 192 407 326
7 Governance & Management 76 36 58 170 136
Creation of Head Teacher Cadre and
8 1,367 1,507 2,556 5,430 4,344
Recruiting 3000 Head Teachers
9 Enhance School Non salary Budgets 1,107 1,220 2,069 4,397 3,737
10 Student Assessment System 410 452 766 1,628 1,352
Partner with Private Sector EMPs
11 1,845 2,034 3,449 7,328 4,397
(50,000 children)
12 Add 200,000 children through BEF 2,952 3,255 5,518 11,724 9,380
13 Literacy and NFE 236 724 674 1,634 1,308
Out Sourcing IT in High & Middle
14 308 339 575 1,221 -
Schools(150,000 children)
15 Remote/Difficult Area allowance 554 610 1,035 2,198 -
16 Monitoring, Evaluation 105 118 203 426 342
17 Throw forward of existing schemes 1,891 - - 1,891 -
Total 22,835 30,032 35,804 88,669 53,971
5.2 Technical Training, College & Tertiary Education
5.2.1 The Higher Education Department of the province manages 35 degree and 62 intermediate colleges
having an approximate enrolment of 50,000 students. The overall budget on the college side is Rs. 2
billion for 2012-13. Despite this outlay and investments of sizeable amount in the capital
expenditure, the state of college education remains weak in terms of quality. The enrolment level
may be around 50,000 but the average attendance levels and overall quality of teaching remains
low, this in turn has serious ramifications on the state of productivity in the province.
5.2.2 The bachelor’s programs in these colleges still follow the two year curricular stream despite the
development of 4 year programs by HEC. Secondly most of the Degree colleges extend the general
Arts subjects which carry very little market value. It is therefore time to gradually consider
restructuring these colleges towards fields which will carry greater chances of employment such as
Business; Management; ICT; Engineering; Architecture; Communication & Media Sciences and so
on. Such restructuring is now becoming quite necessary as the province requires greater number of
manpower in specialized fields in addition to general Arts graduates.

5.2.3 These institutions also suffer from financial and organizational constraints. The overall culture in
these organizations does not encourage quality learning and teaching environment. There is little
use of ICT, the teaching and examinations fail to invoke conceptual understanding of the subject
matter. Issues of governance include low non salary budgets leading to few quality inputs; weak
quality of faculty, teacher absenteeism, low attendances and lukewarm academic environments.
5.2.4 The Technical Education & Training side presents additional challenges. Firstly institutionally the
subject is distributed amongst 4 provincial departments including Education, Labour, Industries &
Social Welfare Department. There has been an on-going struggle to create a single organization that
can oversee the entire realm of technical and vocational training in an integrated manner on the
pattern of other provinces and Federal Government. Earlier an attempt was made to establish
Balochistan Technical Education & Vocational Training Authority (BTEVTA) however it could not
materialize.
5.2.5 GoB is presently spending approximately Rs. 867 million (Revised Estimate for 2011-12) on 102
technical and vocational training institutes across the province, having an enrolment of
approximately only 3900. The general perception is that very few trained candidates are able to link
up with relevant job market. The overall technology and quality of teaching is outdated requiring
strong re -structuring of these institutions. It would be a very worthwhile exercise to explore
possibilities of partnerships with oil & gas and other companies under a framework, where
government finances the cost of training but these organizations manage these institutions under
long term performance based contracts. This will help in introduction of current technologies and
better linkage with market. Similarly GoB plans to seek technical assistance of international donors
for supporting re-structuring of technical training institutions for making them more effective.
5.2.6 There are presently 7 universities in the province with 5 of these located in Quetta and two
universities namely the Lasbela University of Agriculture, Water & Marine Sciences is located at
Uthal and the Balochistan University of Engineering & Technology is at Khuzdar. Six of these
universities are in public sector and only one i.e. Iqra University is private. There is a serious issue
of access in terms of a vast geographic area having almost all intuitions of higher education located
in Quetta except for two and secondly the overall capacity will also require to be expanded in the
next 7 year strategy for creating greater opportunities of higher education in the province.
5.2.7 Higher education in the province also suffers from quality issues. At the university level there has
been some progress on HEC led program developments including improved qualifications of the
faculty and better quality research however the overall quality of teaching and student development
requires additional efforts.
Priority Areas
5.2.8 Access to college education is low and overall standards of college education require improvement.
These twin issues can be addressed by initially restructuring a few select degree colleges towards
market oriented disciplines for eliciting greater interest
5.2.9 Simultaneously the colleges’ governance structure needs to be overhauled for bringing in greater
accountability in terms of student performances. This requires strengthening of the monitoring
framework as well as Intermediate Board of Examination.
5.2.10Technical education requires a major re-structuring for revamping the existing technologies and
standards of training in collaboration with private sector

5.2.11The access to universities requires to be improved by encouraging greater number of campuses in
certain regions having no access to university education and simultaneously increasing linkages
with federal and other private universities for sending greater number of students in other provinces
and to Federal Institutions through provincial scholarships.
Strategy
i. Improve the overall performance of the public sector colleges by installing a scientific monitoring
framework which can provide on line information about teacher and student attendances; progress
on syllabus coverage.
ii. Introduce market oriented faculties such as: Art & Design, Business Administration, IT, Media
Sciences, etc. in 10 existing Degree colleges by bringing in faculty on competitive basis.
iii. Undertake performance based long-term management contracts with private sector for managing
the new colleges under construction for establishing specialized institutes for Business
Administration, Engineering, Architecture, Mining & Petroleum etc. in different regions of the
province.
iv. Beef up the non-salary budgets of the colleges after evaluating realistic requirements and these
may be linked to student performances.
v. Strengthen the Intermediate Examination Board through better manpower and systems for
making examination system more credible.
vi. Develop partnerships with Oil & Gas and other companies for private sector management of a
few selected technical/ vocational institutions especially for fields relevant to the provincial
resource base such as mining, petroleum, mechanical, civil, etc.
vii. Restructure the existing technical intuitions through a technical Assistance package for upgrading
technologies and improving faculty capacities and organizational strengthening. Also under this,
rationalize the organizational structure by creating BTEVTA under technical assistance of the
international donors to be able to bring in the required systems.
viii. Introduce remote and difficult area allowance for incentivizing the postings in these areas.
ix. Existing Universities may be encouraged to open campuses in one or two other regions to cover
the higher education gaps across the province. In Phase 1; the IT University in Quetta and the
Engineering University of Khuzdar can be provided with adequate resources to establish
university campuses in two regions of Balochistan; which do not have any higher education
facility. GoB can also consider negotiating with the Federal Government for locating few
campuses of Federal Universities in Balochistan. For instance ‘Comsat’, operates 7 campuses
in Punjab and KPK and can be requested to set up one campus in Balochistan.
x. GoB to set-up a very lean Higher Education Commission to oversee the standards of teaching in
colleges and universities and recommend additional grants for these institutions to the provincial
government linked to need and performance. A regular system of grants needs to be initiated for
the universities in Balochistan to meet a part of their fiscal deficits. These grants may be

disbursed through Balochistan HEC on the basis of an agreed criteria as well as performance
benchmarks.
Table 5B; Higher Education & Technical Training (Rs. In million)

Sr. FY1, FY3, FY5, FY6, Proposed FA
Strategy Total
1 Establish New Faculty (10 Degree 1,496 444 752 2,692 -
Colleges)
2 Operate New Colleges under PPPs 166 134 225 525 -
(MBA, BSC; Design, Mining,
Petroleum)
3 Campuses of IT & Engineering 160 37 62 259 -
University in two other districts
4 Increase Non salary Budgets colleges 371 417 723 1,511 -
5 Strengthening Balochistan Board of 53 50 79 182 136
Intermediate
6 Managing Technical/Vocational 630 762 1,454 2,846 2,135
Institutions under PPPs
7 Establish BTEVTA and restructuring 630 762 1,454 2,846 2,135
of Technical/ Vocational Training
8 Remote/ Difficult Area Allowance 494 556 965 2,015 -
9 Higher Education Commission 24 20 34 77 -
10 Grants for Universities 1,236 1,389 2,412 5,036 -
11 Throw Forward of Existing Schemes 730 800 - 1,530 -
Total 5,990 5,371 8,160 19,519 4,406

5.3 Health Sector
5.3.1 Balochistan’s health sector indicators are very

poor and the progress attained in last decade is
painfully slow as well as low. This is despite
greater awareness and support from multiple
agencies including international donor
agencies in the health sector especially in the
public health component where apparently
very little has changed for last many years.
The very obvious factors are that other than
the low economic activity and poverty, the
GoB too has remained fiscally strained for last
many decades. This is however a more opportune time to reassess the existing public sector health
portfolio and unfold a more sensitive and intelligent strategy to attend to the priorities under health.
Priority Areas:
Primary Health Care; Mother& Child Health

5.3.2The biggest challenge faced by Balochistan in the heath sector is that of primary and preventive
health care especially in the context of mother and child. The terrain and distances in Balochistan
comes out as a major limiting factor where the reach out of basic health services remains restricted
to certain pockets within each district. Coverage of maternal, child health services including
antenatal, neonatal, contraception, vaccination is considerably weak across the province. Only 26%
of deliveries take place in health facilities, which is at least 10% lower than other provinces. In rural
areas over 80% deliveries take place at home and of these a significant proportion is assisted by
untrained attendants (Table 5.4).
Table 5.4: Child Delivery and Type of Assistance
Place of Delivery Punjab Sindh KPK Balochistan

U R T U R T U R T U R T
Home 37 66 57 24 73 52 43 66 62 42 84 74
Public Health facility 20 8 12 18 8 12 28 14 16 17 8 10
Private Health Facility 43 26 31 57 19 35 29 19 21 40 8 16
Other 0 1 0 1 0 1 0 0 0 0 0 0
Total 100 101 100 100 100 100 100 100 100 100 100 100
Person That Assisted
Doctor 49 26 33 64 25 42 53 29 33 40 10 17
Trained Attendant 44 64 58 31 55 44 21 59 57 57 49 48
Family member/other 2 6 5 3 18 12 20 37 34 13 35 30
Other 4 4 4 1 2 1 7 10 9 2 6 5
Total 99 100 100 99 100 99 101 135 133 112 100 100
Source : PSLM 2010-11 (U: Urban; R: Rural; T: Total)
5.3.3 The other components of MNCH including pre natal and antenatal care are also quite dismal. Urban
areas in Balochistan show only 55% of pre-natal consultation of any type and the rural areas the
coverage dips further to 41%. Similarly the antenatal care is equally bad with over 31% of pregnant
women in the province who have received Tetanus Toxoid (TTX) injection which results in higher
levels of child mortality (Fig 5.1). As per PDHS 2006-07 the maternal mortality ratio (MMR)
measured for Balochistan was the highest among the four provinces at 785 maternal deaths per
100,000 births compared to 227,314 and 275 per 100,000 births for Punjab, Sindh and KPK
respectively. The MDG goal for MMR is 140 per 100,000 live births and the country is nowhere
near the target.
Fig 5.1 : % of Pregnant Women that have Received TTX Injection
100 86 84 Urban Rural Total

74 77 74
80 60 58 61
60 42 41
40 28 31
20
0
Punjab Sindh Khyber Balochistan
Pakhtunkhwa

5.3.4 The Infant Mortality Ratio (IMR) and U5MR are also considerably higher than other provinces.
The Balochistan MICS 2010 has assessed these to be 72 and 89 per 1000 live births against the
MDG targets of 40 and 52 per 1,000 live births.
Fig 5.2:Percentage of Children (12-23 months) Immunized (based on Recall & Record)
Male
100 87 85 86 Female
77 77 77 Total
70
80 64 67
60 45 45 45
40
20
0
Punjab Sindh KPK Balochistan

5.3.5 Under child immunization the provinces’ comparative data in PSLM 2010-11 shows an overall
coverage of 45% for Balochistan compared to 86% in Punjab, 67% in Sindh and 77% in KPK (Fig
5.2). The detail of each category reflects a more dismal situation. As per MICS 2010, only 35%
children (12-23 months) received BCG at birth before their first birthday. Polio-1 was administered
to 61% children at any time before the survey which dipped to 46% for Polio 3. DPT-1 was given
to 24% and it dropped to 12% for
DPT-3. Hepb3 was reported for less Table: 5.5: PPHI’s Achievements on Infrastructure
than 7% children. 23% children Sr Before After
received measles vaccination at any Facility Total
No PPHI PPHI
time before the MICS survey. This 1 Laboratories 9 133 142
situation can lead to serious 2 Incinerators 0 48 48
consequences if not contained through 3 labour Rooms 0 48 40
urgent measures. The recent outbreak
24/7 labour Rooms 0 30 30
of measles in Sindh reportedly led to
MCH Plus 0 11 11
over 400 deaths across Sindh by
4 Ultrasound Machines 0 19 19
January 2013. Hence, given the
5 Generators 0 46 46
generally poor functionality of the
public sector facilities, it is important 6 Desert Coolers 0 63 63
that a dedicated attention is paid to 7 Cold Chain Points 148 182 330
contain outbreaks of communicable 8 Water 74 249 323
diseases across Balochistan. 9 Gas 35 23 58
10 Electricity 188 179 367
solar Energy 0 10 10
5.3.6 Polio remains an area of concern. As
11 Telephone 3 325 328
per Report of the Independent
Monitoring Board of the Global Polio 12 Ambulances 17 24 41
Eradication Initiative February 2012, 13 Furniture/Fixtures - 548 548
greatest number of cases relate to 14 Made Functional from - 143 143
Pakistan where it further increased by Non Functional
38%. The majority of the cases occur 15 Repair & Renovation
- 478 478
in three main areas: Balochistan Source: PPHI, GoB Brief
(Killa Abdullah, Pishin and Quetta districts); Sindh (Karachi and northern Sindh; and parts of
FATA and KPK.8In Balochistan the number of cases increased from 12 in 2010 to 73 in 2011 and
the affected districts increased from 6 to 14. What is disturbing is that the polio immunization
coverage slipped to 46% by polio-3. Weaknesses in polio coverage need to be scientifically tackled
by integrating the immunization with PHC cover. It also involves community based education and
tight governance of entire immunization together with polio.
5.3.7 The PHC coverage in the province has improved significantly after the PPHI which is presently
managing over 567 HFs (563 BHUs; 3 CDs & 1 RHC) across the province. Not only has the
PPHI in Balochistan made significant progress in rehabilitating the run down infrastructure;
equipping it with required equipment; medicines but the overall presence of health staff including
doctors has also visibly improved. Over 143 non-functional BHUs have been made functional in
a short span of 4 to 5 years (Table 5.5).
8
The Global Polio Eradication Initiative; www.polioeradication.org/Infectedcountries/Pakistan.aspx

Burden of Disease
5.3.8 In Balochistan TB and hepatitis are major contributors to communicable disease burden. While
communicable diseases still account for dominant share of morbidity and mortality in the province
however prevalence of non-communicable diseases (NCDs) is rising rapidly. However there are no
clear study sources for monitoring the incidence of NCDs. Case load of TB in Balochistan as in the
national level is mainly amongst the poor. Case detection rates vary across districts and these are
extremely low in Dera Bugti, Kalat, Kech, Musakhel, Sibi. The treatment success rates also vary
across districts. Hepatitis B and C levels are also major concerns however unsafe practices of
injection usage and needle disposal are widely prevalent and vaccination levels are low at less than
7%. HIV control needs a special focus in urban Balochistan
Nutrition
5.3.9 As per the National Nutrition Survey 2011; after Sindh, Balochistan was found to be affected more
by food insecurity. It was assessed that about 63.5% people were food insecure and of those that
were found to be food insecure, about 33.9% were food insecure without hunger, 18% were food
insecure with moderate hunger and 11.5% were food insecure with severe hunger. About 32.2%
children suffered from severe stunting. Also Balochistan had highest rate of underweight children
41.8% followed by Sindh 39.8%. Given the severity of the problem there is an urgent need to
evolve nutrition interventions in coordination with other departments especially the Agriculture
department as part of a larger inter-sectorial strategy.
Essential Medicine
5.3.10 Essential Medicine availability is poor in public sector and compounded by irrational use and
suspect quality across the sector: Balochistan alike other provinces lacks a pharmacy strategy and
this sub-sector has traditionally been over-looked in planning for health systems. There has been
proliferation of shadow pharmacies, inappropriate prescriptions of medical practitioners and low
use of recommended generics. There are also supply management issues such as low quality
parameters in purchasing, and lack of transparent checks in management of inventory. Health
financing measures are also needed to reduce the high OOP expenditure on drugs. Above all there
is absence of a central body to act as the hub of pharmacy functions for taking this forward.
Governance
5.3.11 Government recognizes that the issues of governance of health require attention. There is over
centralization of authority; weak oversight of service and absence of a clear monitoring and
evaluation framework. Further there is need to strengthen the tenures of top management as
frequent transfers of both senior and mid-level management impact governance adversely.
 In terms of human resource deployment; there is presently no strategy for staff production,
postings and training. The ratio of doctors to nurses is inverse with there being 3 doctors to a
nurse. There is shortage of all categories of female staff and specialists in rural districts
primarily due to patronage- based transfer postings. Also administrative posts at both district
and provincial levels also lack mandatory management qualifications.
 Balochistan has considerably low presence of private sector but it is gradually increasing and
requires regulatory framework. Reportedly there is wide practice of quackery, shadow
pharmacies and sub-standard diagnostics used especially by the poor. There is need to

encourage greater presence of private sector for Blood Transfusion and Diagnostic services and
to regulate the existing service providers by setting up of a Regulatory Authority.
Low Public Sector Spending
5.3.12 Given comparatively low presence of private sector in Balochistan with the exception of Quetta,
the bulk of population relies on public health facilities. The provincial health spending has
remained static at around 6% of total provincial expenditure for last many years (Table 5.6). Even
after better fiscal space in the post NFC years, the situation fluctuated slightly. The total health
expenditure increased at an average annual growth rate of 29%, from 2006/07 to 2011/12. Other
features are: i) salary budgets constitute 75% of total spending reflecting insufficient non -salary
budgets; ii) allocation for development expenditure is heavily tilted towards facility construction;
iii) primary health care provides the most cost efficient means for disease control, however it does
not get sufficient funding; iv) proliferation of parallel vertical programs, duplication of many
activities (which if integrated can lead to cost effectiveness) all lead to inefficient spending of
scarce resources.
Table 5.6: Health Expenditure 2006-07 to 2011-12 (Rs. In million)

2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 Growth 5 yrs
Grand Total
Expenditure 48,395 55,486 63,239 68,731 128,855 144,473 24%
Prov. Recurrent Exp 27,642 31,963 39,971 44,466 92,602 101,778 30%
Prov. Dev.
Expenditure 20,753 23,522 23,267 24,265 36,253 42,695 16%
Total Health
Expenditure 2,714 3,118 4,071 4,759 6,740 9,548 29%
Health Recurrent Exp 2,485 2,896 3,564 4,108 5,743 7,603 25%
Health Dev. Exp 229 222 507 651 997 1,946 53%
Health percentage of
Total Exp 6% 6% 6% 7% 5% 7%
Source: Provincial Accounts(Note: calculation differences may arise, purely as a result of rounding off)
Strategy
Strengthening Primary Health Care (PHC)
GoB acknowledges that without strengthening the outreach as well as quality of PHC services including
the immunization and MNCH it cannot move out of the low health indicators. This is a core priority and
the simplest way to reach the objectives is to build on existing success stories. By now, PPHI in
Balochistan has exhibited a reasonably robust presence and has undertaken the first steps by rehabilitating
the BHUs and providing better health services through availability of medical staff and medicines.
Despite fragile security situation PPHI has been operating in almost all regions of the province exhibiting
resilience within a difficult terrain and environment
i. Integrate the Civil Dispensaries (555 in number); EPI and LHVs with the PPHI by transferring the
administration and budgets of these entities to it. PPHI to be tasked to upgrade the CDs to BHU
levels, by providing them required grants for additional infrastructure and manpower. PPHI to
manage immunization through scientific database.

ii. PPHI to upgrade a minimum of one third of the BHUs to BHUs- plus model for delivery of services
on 24/7 basis in all the districts. It may be required to create one secondary level health facility in
every tehsil with a proper referral linkage with BHUs. This can be done by transferring one RHC in
each tehsil to PPHI for converting to secondary level hospital and having 24/7 MNCH and other
services.
iii. There are 22 on-going schemes relating to primary health (New BHUs, CDs, RHUs, and
rehabilitation of different HFs etc.). These require Rs. 193 million for completion; these together
with new schemes will be given full capital and operational funds for early operationalization.
iv. Strengthen PPHI’s legal and institutional framework by converting it into a section 42 company and
providing it with an Endowment for making it an autonomous organization to work as a strong
partner organization in health service delivery with built in accountability mechanisms
v. Establishing links between TB, Malaria and Hepatitis for integrated and evidence based control at
community levels. This requires strengthening of TB Program; Malaria Program to be made results
based. Further, the Chief Minister’s Initiative for Hepatitis Free Balochistan requires review for
expanding it with a focus on preventive vaccination beginning from school children; new born;
expectant mothers and population within highly infected regions.
Addressing Challenges of Health Sector Governance & Accountability
vi. Health Department to reorient its role from HR management to Health policy, financing, oversight
and regulation body. For this, HR management will be decentralized to Health Facility level
especially for tertiary care hospitals and by gradually rationalizing the availability of manpower.
There is chronic shortage of specialist doctors, nurses and paramedics in the DHQs; RHCs across
the province other than Quetta. GoB to create Facility Specific Non Transferable Vacancies for
Specialists for these Hospitals and will enforce a professional deployment policy.
vii. Strengthen the Health Management Information System (HMIS) by improving the human
resources; other resources and creating linkages with the District Management Information System
(DMIS). .
viii. Evolve a Minimum Health Service Delivery Package (MSDP) & Standards in Public Sector
Facilities and move towards Result Based Implementation.
ix. Create trained Administrative Cadre to improve efficiency of Health Administration at all levels.
The current trend of posting doctors as Medical Superintendents and against other administrative
positions is to be phased out by bringing in Health Management Cadre.
x. GoB plans to undertake a few, “Hospital Autonomy Pilots for major Tertiary/ Specialist Hospitals”;
by creating autonomous boards in partnership with philanthropists; not for profit organization and
even with for profit private sector. This is with an objective to upscale and improve the services of
tertiary care hospitals.
xi. Under on-going portfolio, 10 new hospitals (50 bedded in Kech, Killa Abdullah, Kachlak (Quetta),
Ghousabad (Quetta), Kalat, Punjgur, Pasni, Nushki, Kachi) are being constructed. In addition it
includes 100 bedded hospital in Quetta, a cancer hospital at Quetta, 100 bedded Mental Hospital at
Quetta and Women's hospital in Zhob. All these will require a huge amount on operational side and
undertaking recruitments through existing policies will once again lead to centralized management

and possibilities of deployment in bigger urban centers mostly Quetta. A few of these to be
operated under PPP mode by soliciting interest of private sector/ not for profit organizations/
expatriate residents of Balochistan who may be interested in operating these on professional basis.
xii. Explore possibilities of PPPs in different components of health sector especially in such areas as
medical education, specialized curative care, diagnostic services and blood banks. Contracting of
such services as hospital kitchens, janitorial services, security services, hospital laboratories,
Ambulance services, etc.
xiii. Undertake a high quality training program for developing nurses and paramedic staff by bringing in
a performance based management contract for one of the nursing training facility on the basis of per
trainee costs.
xiv. GoB plans to evolve a Nutrition Program through dedicated packages and inter- sectorial linkages
especially in collaboration with Agriculture department. Nutritional services to be integrated with
PHC and will require availability of nutrition supplements; building capacity of service providers
in assessment and management of malnutrition
xv. Attending to gaps in the availability of emergency services
xvi. Provide laboratory services for diagnosis of major infectious diseases including TB, Hepatitis B
&C, HIV/AIDs , malaria at all RHCs and tertiary hospitals
xvii. Establish blood banks in secondary level health care facilities and ensure safe blood transfusion in
all existing public and private blood banks
xviii. Strengthening availability of Drugs and Diagnostic Services through public support. There is need
to update Essential Drug List to examine the storage availability at tertiary hospital level.
xix. As part of this strategy GoB plans to re-assess the budgets for drugs; medical supplies including X-
Rays; diet; laboratory equipment and supplies and improve the non- salary budgets to ensure that
essential requirements are adequately supplied in efficient manner.
xx. Introduce remote / difficult area allowance for incentivizing postings in these regions,
xxi. Population Welfare activities need to strengthened through coordinative efforts at BHU and RHC
level and integrating these with MNCH coverage
Table 5C; Health & Population Welfare (Rs. In million)

1 Integrate CDs & EPI with PPHI,
5,102 2,305 3,907 11,314 6,788
convert CDs into BHUs
2 Upgrade 300 BHUs into BHU Plus 1,435 1,068 1,811 4,314 2,588
3 PPHI Endowment 700 800 1,200 2,700 -
4 Hospital Autonomy Pilots 500 600 900 2,000 -
5 Operationalize 5 New Hospitals
400 600 900 1,900 -
through partnerships
6 Strengthen HMIS; Develop
185 223 426 834 626
MSDPs

7 Additional Doctors, Staff, Non
363 739 1,252 2,354 -
salary Budgets
8 Integrated Nutrition Program 350 380 570 1,300 975
9 Emergency Services by creating a
111 41 69 221 166
dedicated facility in Quetta
10 Strengthen diagnostic laboratories 239 202 342 783 587
11 Create Blood Banks under PPP 201 85 144 430 322
12 Medical College under PPP 1,187 645 445 2,278 -
13 Management Contract for Nursing
& Paramedic Training Institute 366 360 542 1,267 951
14 Convert Health Foundation into
133 155 276 564 423
Health Regulatory Authority
15 Remote /difficult Area allowance 989 1,048 1,111 3,148 -
16 Lump Sum for Population welfare 500 1,500 3,000 5,000 -
17 Throw Forward of Existing
500 1,000 1,479 2,979 -
Schemes
Total 13,261 11,751 18,374 43,386 13,426
5.4 Religious Affairs
5.4.1 GoB reorganized the Hajj and Auqaf department in 2010 as Religious and Minorities’ Affairs
department. The department was re named as Religious and Inter-Faith Harmony department in
June 2011 with the mandate to handle matters relating to Zakat, Ushr, Hajj and Minorities Affairs.
The Zakat and Ushr have been devolved to the provincial governments subsequent to the
promulgation of the 18th Amendment. Given the wider role of the department in coming days it will
be important to strengthen the institutional framework for gearing it up for the expanded
responsibilities.
Strategy
5.4.2 Presently the department has very few resources both in terms of manpower as well as budgets. A
few important steps required for strengthening the institutional framework would involve:
i. Strengthen the Zakat disbursement mechanism through greater use of ICT; by computerizing
the data; on line disbursements through mobiles etc. Making the beneficiary identification
more transparent by cross checking with BISP data and updating regularly
ii. Greater reliance on Rehabilitation grants and facilitating sustainable incomes through
trainings and micro enterprise development
iii. Undertaking robust Madressah reforms by introducing compulsory teaching of important

subjects like math, science etc.
iv. Grants for rehabilitation of Mosques

Table 5D: Religious Affairs (Rs. in million)
Sr. Strategy FY1, FY3, FY5, Total Proposed FA
No FY2 FY4 FY6, FY7 Portion
Endowment Fund for -
1 Rehabilitation of Mosques 100 100 100 300
Grants for Madressah Reforms -
2 100 200 300 600
Strengthening Zakat Institutions -
3 and ICT for Zakat Disbursements 100 200 300 600
Grants for Minorities (religious -
4 100 200 200 500
places, festivals, stipends)
Total -
400 700 900 2,000
5.5 Culture, Tourism & Archaeology
5.5.1 The Culture, Tourism & Archives department handles the subjects of culture, tourism and archives
through dedicated Directorates. The department is involved with different activities to promote the
rich culture and heritage of the province including arts, crafts, folklore and music. The Archaeology
Directorate’s mandate is protection and conservation of the built heritage in the province including
historical monuments for preserving and promoting the heritage.
5.5.2 On the Tourism side there are significant number of initiatives which have been undertaken to create some
basic infrastructure for promoting tourism in Balochistan, such as rest houses, tourist spots etc. Subsequent
to the 18th Amendment there are multiple issues which are pending at the level of the federal government
such as transfer of the PTDC motels, Tourist Information centers in different cities such as Ziarat, Chaman
etc. In post devolution scenario the role and responsibilities of the department have increased and it
requires considerable administrative and financial support to be able to contribute towards public support
for culture and tourism.
Strategy
i. Promotion of culture, arts, crafts and folk lore is planned to be under taken with renewed vigour.
This is being seen as necessary for overcoming the general despondency in the province and
highlighting the rich history and traditions of the province. For this, special efforts would be put
in to organize cultural activities; events through public sector support as well as by mobilizing the
non-governmental organizations, educational institutions etc.
ii. Create a dedicated fund for supporting artists including musicians, actors and singers.
iii. Given the tremendous opportunities for Tourism in the province, the department in collaboration
with the Coastal Development Authority, explore the possibilities of engaging with the private
tour companies for developing tour programs for different sites on the coast including cruise tours
for Gwadar and Somiani beaches. Simultaneously, it requires incentivizing the local population to
create a few affordable motels and restaurants aesthetically, development of tour guides,

websites, etc. Similar efforts will be undertaken for promoting tourist visits in all the regions,
gradually including Quetta, Pishin, Killa Abdullah, Loralai, Kalat etc.
iv. Strengthen the Archaeology section by identifying historical monuments which require
conservation and gradually building up the technical skills for conservation.
Table 5E: Culture, Tourism (Rs. in million)

Sr. Strategy FY1, FY3, FY5, Total Proposed
No FY2 FY4 Fy6, Fy7 FA Portion
Promotion of Cultural Activities 100 100 200 400 -

1
Tourism Promotion through partnership -
2 200 200 300 700
with private sector
Rehabilitation & Conservation of -
3 Historical Monuments 200 200 300 700
Throw forward of Existing Schemes -
4 38 - - 38
Total 538 500 800 1,838 -
5.6. Social Welfare, Sports & Youth Affairs
5.6.1 GoB accords importance to social welfare for reaching out to the marginalized and weaker sections
of the society. It plans to support and expand the existing interventions especially in the context of
containing the increasing drug menace. Simultaneously it aims to support the nurturing and
development of youth by engaging them in meaningful activities. Given the huge youth bulge and
possibilities of the role that youth can play in containing conflict and promoting peace in the
province, the Government plans to encourage their involvement in multidimensional activities.
5.6.2 In terms of evolving strategy for containing the rising drug menace, an important element is
containing the drug addiction amongst the youth; which is believed to be on the rise. The drugs,
mostly cocaine, heroin (from poppy), hashish and opium, come from Afghanistan through the
long and porous border, but it is also believed that these may come through regular entry points
with possible collusion between the smugglers and the border security. Drug smuggling is
apparently strongly linked with both human trafficking and arms trafficking. The Ministry of
Narcotics together with the Anti-narcotics Force and UNODC - and supported through USAID is
responsible for dealing with drug problem.
5.6.3 Border communities and major settlements like Quetta are the most affected. A drug addict in a
family affects not only the family, but the neighborhood and the whole community. There is very
strong social stigma associated with drug addiction - with addicts often treated undesirable outcasts.
Officials in Balochistan consider the drug menace as both a social and humanitarian crisis that
deserves urgent attention. But it is also a security and a potential trigger of violent conflict in the
border areas and in built areas such as Quetta.
5.6.4 There is only one facility to for drug rehabilitation in Balochistan. The new sprawling 8 acre
complex - The Detoxification and Rehabilitation Complex for Drug Addicts, Eastern Bypass,
Quetta" - caters for a possible 250 patients at a time, but because of shortage of funding, it presently
offers only 60 beds. This is but a tiny drop in the ocean of abject poverty and misery. To make
matters worse, the centre has no facilities for women patients. The centre also provides counseling

services to those addicts who opt out of rehabilitation. In addition, it runs schools awareness
programs. Whereas post-rehabilitation relapse rates are normally quite high (as much as 95%) in
similar situations, the centre claims a success rate of 33% fully rehabilitated patients, but there is no
third party validation of this figure.
Strategy
i. Establish a “Youth Dialogue Forum” where youth can discuss challenges affecting and
opportunities available to the youth. The youth would, through this mechanism, collectively
develop strategies and programs that feed into district and/or provincial processes.
ii. Establish school social cohesion/bridge-building clubs to promote a culture of dialogue. Organize
study tours for women leaders and youth leaders (jointly or separately) to engage with and share
development and education approaches in other provinces.
iii. Undertake a systemic program for rehabilitation of playgrounds; stadiums and other places of
sports. Create a mechanism for registering Youth Organizations for supporting and sponsoring
sports events through local community networks and greater documentation.
iv. Registering and supporting the Youth Organizations for other activities like exchange programs;
leadership trainings; facilitating their participation in debates; dramas; international conferences
v. A study to determine the extent of the drug problem, including approximate quantities of drugs
crossing into Balochistan, the trafficking and gender disaggregated data on usage of the drugs
within Balochistan, usage in schools and colleges, etc. Undertake a needs analysis of The
Detoxification and Rehabilitation Complex for Drug Addicts, Eastern Bypass, Quetta with a view
to supporting the rehabilitation program including establishment of a women's facility at the
centre. Support the schools awareness program in the most affected areas of Balochistan.
Table 5F: Social Welfare , Sports & Youth (Rs. in million)

Sr. Strategy FY1, FY3, FY5, Total Proposed FA
No FY2 FY4 FY6, FY7 Portion
Rehabilitation of Existing Stadiums, -
1 200 300 500 1,000
Playgrounds; Gymnasiums etc.
Endowment Fund for Supporting various -
2 100 400 500 1,000
Social welfare Activities
Institutional Development of the Dept. for -
3 30 30 40 100
Support to Youth Organizations
Throw Forward of Existing Schemes -
4 95 - - 95
Total -
425 730 1,040 2,195

06
Infrastructure

6: Infrastructure
Development and maintenance of essential physical infrastructure is an important ingredient for sustained
economic growth. Poor infrastructure is perhaps the most binding constraint to growth especially for
regions like Balochistan where distances have largely determined the history of its development. The
Government of Balochistan has been historically assigning high priority to infrastructure building. There
is however, a growing clarity that given the specific context of Balochistan, a strategy is required for
developing the infrastructure in a more planned manner. This section puts across GoB’s strategy on
physical infrastructure with focus on the road network, water, water supply & waste water, housing and
energy.
6.1 Roads & Transport
6.1.1 One of the most forbidding constraints faced by Balochistan is the remoteness, both within the
province as well as with bordering provinces and countries. The connectivity in Balochistan
determines its productivity; linkages with markets; availability of labour, finance, and transactions
as well as the service delivery, all of which are preponderantly dependent on the transport. An
efficient transport infrastructure is believed to not only enhance productivity but it will also
enhance the rate of return on formation of both physical and human capital (World Bank 1994).
Balochistan thus requires high levels of effective investments in the transport sector. Such
investments can only be made possible through intelligent fiscal management including well
planned borrowings from multiple sources including international donors.
6.1.2 Regions like Balochistan are considered to be

best served by rail transportation, which can
provide comparatively cheaper connectivity,
however in the case of Balochistan, railway
connectivity is only in the north of Balochistan
and the rest of the province unfortunately does
not have the network. Developing a robust
railway network in the province can be a
strategic intervention for the long-term
development of the province. This particular
investment hinges on the development of
Gwadar port as a transit trade route to generate
the type of transit freight traffic that can make
this investment commercially viable.
6.1.3 In the current scenario 90% of Balochistan’s passenger traffic and 95% of freight traffic uses the
road network including the national highways and the provincial roads. Balochistan’s roadwork was
about 33,588 km in length by 2012 and of this more than 60% (20,221 km) were shingle (unpaved)
roads.9 The overall road density of the province is 0.09 road length per square km which is much
lower than other provinces and works out to be almost half of the national average. Other than this
low density, there is a huge backlog of road maintenance and roughly 70% to 90% of the networks
are in a state of disrepair. 10 Transport cost increases as road surface quality deteriorates. The
9
Communications & Works Department, GoB
10
Pakistan’s Balochistan Economic Report. 2008. World Bank, Asian Development Bank and Government of Balochistan.
Report No. 40335 Pk. Volumes I and II.

maintenance budgets have remained low and generally receive very little attention at every level in
the provincial policy making.
Table 6.1: Balochistan's Road Sector Allocations FY 2012-13

Estimated Costs (Rs. in Allocation 2012-23 (Rs.
million) in million)
Schemes GoB F.A Total Exp June GoB F.A Total Throw
2012 Forward
C&W On- 171 31,352 921 32,274 17,296 2,718 175 2,893 12,084
going
New 149 8,315 8,315 6,569 6,569 1,746
BDA On- 105 42,229 42,229 12,554 2,471 2,471 27,204
going
New 5 172 172 102 102 70
Total 430 82,069 921 82,990 29,851 11,860 175 12,035 41,104
Source: GoB Budget 2012-13
6.1.4 The GoB recognizes the critical importance of this sector and has been allocating a large part of the
development funds to road sector investments. In FY 2012-13, Rs. 12 billion were budgeted
constituting 33% of the total provincial PSDP (Table 6.1). The challenge is to undertake the road
building through better planning. Presently there are over 430 schemes with a thin spread of
resources. The on-going portfolio of over 276 schemes with an estimated cost of over Rs. 74 billion
requires Rs. 44 billion for completion. However, funds received amount to Rs. 5.3 billion only,
which constitute 12% of the required funds. The new schemes (154) with a cost of Rs.8.4 billion,
received Rs. 6.6 billion constituting 79% of the total cost. This is likely to impact the investment
already incurred on the on-going schemes and may lead to construction inefficiencies and wastages.
Table: 6.2 Road Sector Schemes with NHA FY 2012-13 (Rs. In million)
Sr Scheme Est. FA Exp Throw- Allocation 2012-13
no Cost June forward
FA Rupees Total
1 Widening & Improvement
of N-85, Hoshab-Nag-
Basima - Surab Road (459
Km) 22,412 - 6,164 16,248 - 1,100 1,100
2 Gwadar - Turbat - Hoshab
Section (200 Km) of
Gwadar - Ratodero Rd (650
Km) M-8 18,379 - 15,077 3,302 - 3,302 3,302
3 Makran Coastal Road (N-
10) Liari- Gwadar + Gwadar
-Gabd 16,072 - 15,572 500 - 175 175
4 NHDSIP: Killa Saifullah-
Zhob (N-50) - Killa
Saifullah & Zhob 9,777 7,528 4,287 5,490 2,000 500 2,500
5 Kalat-Quetta-Chaman N-25
(247 km) 9,327 4,017 7,827 1,500 - 1,200 1,200

Sr Scheme Est. FA Exp Throw- Allocation 2012-13
no Cost June forward
FA Rupees Total
6 Khori -Quba Saeed Khan 6,500 - 1,266 5,235 - 1,100 1,100
(Khuzdar-Ratodero Rd
7 Improvement of Kararo- 3,373 2,231 3,348 25 - 25 25
Wad Section (96 km) N-25
8 Improvement of N - 65, 3,282 - 3,277 5 - 5 5
Nutal - Sibi –Dhadar (106
km) (QTA)
9 Rehab of Larkana-Rasheed 1,215 - 584 630 - 250 250
Wagon-Nasirabad Rd
10 Construction of Kolpur 639 - 523 117 - 117 117
Bypass N-65
Total Balochistan 90,976 13,776 57,925 33,052 2,000 7,774 9,774
Source: Planning & Development Department, GoB
6.1.5 Balochistan has the most extensive network of national highways with 8 national highways totaling
about 3,600 kms, which comprise approximately 37.7% of the total length of national highways
length in the country. In addition Balochistan has 962 kms of motorways, constituting 37% of the
total length of motorways in the country. NHA has made significant investments in Balochistan’s
road sector and at present it has 10 major schemes under implementation worth Rs. 90 billion with
a throw forward of Rs. 33 billion. Of this, Rs. 9.7 billion including Rs. 2 billion of foreign aid has
been allocated for FY 2012-13 leaving behind a requirement of Rs. 23 billion for completion of
these schemes in hand (Table 6.2).
Priority Areas
Table: 6.3 Road Sector Budget Allocations 2009-10 to 2012-13

Road Sector Allocations Total Provincial PSDP
Capital Foreign Total Capital Foreign Total % of PSDP
Aid Aid
2009-10 7,004 300 7,304 13,474 1,649 15,124 48%
2010-11 8,302 1,368 9,669 22,053 4,276 26,329 37%
2011-12 9,342 328 9,670 29,127 2,225 31,352 31%
2012-13 11,860 175 12,035 33,105 2,972 36,077 33%
Source: GoB Budget Books(Note: slight calculation differences may arise, purely as a result of rounding off)
6.1.6 The provincial road portfolio has been receiving adequate funding in the provincial outlays. The
budget allocation increased from Rs. 5.4 billion in 2006 to over Rs. 12 billion in 2013 (Table 6.3).
These are original allocations and revised budgets are usually revised downwards however, the
sector has been receiving priority attention at the provincial level. Some of the areas that need
focused attention are discussed in the following paragraphs:
6.1.7 There is presently a throw forward of Rs.41 billion which is likely to require 3 years or so for
completion even if the current level of funding is increased. This implies that there will be little
space to undertake new schemes which may be economically more viable. Also, such thin spread of

funding invariably results in cost escalations and more importantly entails opportunity costs and
benefits which would have accrued in case of timely completion of the schemes.
6.1.8 Two-third of the road network in the province of about 20,221 kms is shingle roads. This is an
oversized portfolio requiring colossal amounts of investment, time and implementation capacity
and adequate maintenance subsequently. Also within the provincial roads, a portfolio of high
priority roads which connect the economic and administrative centers, markets and major
settlements needs to be adequately identified. These economic corridors will accordingly require a
prioritized attention and simultaneously the shingle roads need to be paved through well considered
prioritization.
6.1.9 The maintenance and repair of the entire road network continues to be neglected with adverse
consequences on the condition of the roads. This persistent and systematic neglect may ultimately
lead to the collapse of the road sector assets resulting in heavy stress on resources and as such
requires serious attention. The existing yardstick for maintenance is visibly below the benchmark
and requires revision after technical review. Simultaneously the overall management of the
maintenance portfolio needs to be made more scientific and transparent for exhibiting quantifiable
improvements.
6.1.10 Due to lack of availability of modern technology, GoB does not have updated information on the
status of roads especially the remote rural access roads and as to the number of settlements which
are not connected with travelable roads. This impacts the provincial government’s ability to
undertake rural roads development in a more organized manner. Lack of adequate road
infrastructure imposes economic and social burden on rural communities in multiple ways and
inhibits their ability to earn better livelihoods and restricts access to a range of public services
especially health, education etc. This component as such requires an organized response.
6.1.11 The overall ability to manage road sector and to undertake road infrastructure development through
different partnerships such as through BOT methods etc. requires technical capacities within the
department. In addition the department requires technological upgrades to be able to undertake
systematic planning through greater use of technology such as use of GPS and GIS etc.
6.1.12 Within the institutional and capacity strengthening component, the ability to develop a mechanism
for regular updating of schedule of rates on the basis of market; a more scientific monitoring of
road construction and quality parameters with improved contract administration are some aspects
that require strengthening.
Strategy
Give the size of road sector requirements, GoB acknowledges the need to look out for new ways and
means for building affordable and sustainable roads. This requires policy, institutional and planning
reforms, including the following:
i. Solicit Technical Assistance for supporting planning through modern technological & ICT tools;
improvements in procurement capability; ability to outsource various components relating to
engineering designs; traffic studies; maintenance surveys; environmental safeguards and quality
checks etc.
i. Develop an Asset Management Plan for provincial and rural roads for undertaking
institutionalized and planned rehabilitation.

ii. GoB to evolve legal and institutional framework for PPPs including developing the capacity to
undertake partnerships with the private sector for investment in the sector. This is likely to be a
slow process restricted to a small component relating to one or two viable corridors initially
however with improvement in the economy, the portfolio can be expanded for commercially
viable and partially viable road corridors.
iii. Develop a Road Sector Master Plan for;
a) High Priority Roads that provide connectivity to all the major economic and administrative
hubs;
b) Converting Shingle roads into paved roads in phases;
c) Priority Plan for Rural Access Roads.
iv. Engage with International Development Donors for a comprehensive investment program based
on the Roads Master Plan for economic corridors; existing shingle roads and prioritized rural
access roads. Under this;
a) Undertake construction of 2500 km of high profile economic corridors through donor
financing;
b) Undertake conversion of 3000 km of shingle roads/ rural access roads through donor
financing;
c) Undertake conversion of 5000 km of shingle roads into paved through provincial own
financing.
v. Undertake a planned maintenance of 5000 km of roads assets on the basis of Asset Management
Plan through own financing.
vi. GoB would engage with GoP and NHA for completing the existing portfolio on priority basis.
Emphasis may be laid on completion of N-85 corridor connecting Gwadar through Hoshab and
from Basima, Khuzdar to Ratedero. This was scheduled for completion in 2008. Being an
important economic corridor for connecting Gwadar to the National Trade Corridor, it requires
high priority financing. It has a throw forward of Rs. 16 billion and having just Rs. 1.1 billion
allocation for CY.
vii. GoB will follow up on Rail Transport, under which three new railway lines were envisaged. First
the Gwadar-Panjgur-Quetta Link; second, Link from Quetta to Peshawar, which would reduce the
distance by 400 km and link Balochistan with Western China; and third the Gwadar-Panjgur-
Dalbadin segment of 515 km, which is important for transport facility for minerals.
Table 6.3A: Road Sector (Rs. in million)

1 Capacity Development for 45 90 135 270 270
Planning & Procurement
2 Asset Management Plan 70 - - 70 70
3 Institutional Framework for 11 24 40 75 75
PPPs (Road Specific)
4 Development of Master Plans 100 - - 100 100
5 Priority Eco Corridors (Up 3,000 7,000 15,000 25,000 20,000
gradation/New 2500 km with
Donor Support)
6 Conversion of Shingle Roads to 3,000 4,000 8,000 15,000 10,000
paved Roads with Donor
Support (3000 km)

7 Conversion of Shingle Roads to 2,000 6,000 12,000 20,000 -
paved Roads with own financing
(5000 km)
9 Maintenance of Existing Roads 1,000 2,000 2,000 5,000 -
(5000 km)
10 Throw Forward of Existing 10,000 10,000 20,000 40,000 -
Schemes
Total 19,226 29,114 57,175 105,515 30,515
6.2 Water
6.2.1 Balochistan’s economy is predominantly dependent on agriculture which constitutes over 33% of
its GPP and a large majority of people rely on agriculture and livestock for livelihoods.
Agriculture’s productivity is directly contingent on the availability of water, which in the case of
Balochistan is scarce and highly variable being dependent on the rainfall. The strategy for
developing and conserving irrigation water resources are central to agriculture which uses about
97% of the water and also for the water supply requirements of both rural and urban populations.
Fig 6.1: Water Resources of Balochistan
Post Accord Groundwater, 4%

Perennial Canal
Supplies, 20%
Enhanced Perennial
Canal Supplies
(Raising of Mangla
Dam), 2%
Floodwater
Accord Perennial (Sailaba), 57%
Canal Water
Supplies, 17%
Source: Balochistan; Development Issues & Prospects; Part II, 2012, World Bank
6.2.2 The water resources of the province consist of surface water and ground water and their major
source is precipitation. There are three major sources of water in Balochistan: the Indus Basin
Irrigation System (IBIS) comprising of perennial and non -perennial flows; floodwater Sailaba
comprising of run-off; and groundwater includes tube wells; springs; karezes (traditional system of
channels which bring water to fields) etc. Presently, the surface water resources of the province
constitute 96% of the total water resources available per annum, whereas the remaining 4% is
available from the groundwater resources. Of the total water resources around 57% are from
floodwater, which is generated in the mountains in the form of hill torrents and moves through
diversion structures into an open channel network (Fig 6.1). Of this less than 40% is utilized and
remaining drains back into sea from different basins.11
11
Balochistan; Development; Issues & Prospects; Part II, 2012; World Bank.

6.2.3 Groundwater, constituting about 4% of total water resources has been relentlessly utilized and
according to estimates some 60% of the available ground water has already been exploited through
tube wells and dug wells and the lowering of aquifers is becoming evident especially in the three
over-drawn basins; Pishin-Lora, Nari and Zhob. GoB and the GoP have been bearing huge fiscal
cost of subsidy on these tube wells which has resulted in serious depletion of the water tables in the
river basins.
6.2.4 Government recognizes that 33.1million acres comprising 38.6% of the total geographical area of the
province is suitable for agriculture. Of this only 4.5 million acres is under some form of irrigation
leaving over 86% of cultivable land which does not have access to water for irrigation. Again of the
4.5 million acres irrigated land a good 47% or so is irrigated through floodwater Sailaba farming,
very clearly reflecting the importance of floodwater in the overall water availability statistics.
Securing the underutilized floodwater both from Indus Water System as well as Non Indus Basin
must therefore remain central for water resources development in coming days (Table 6.4).
Table: 6.4 Balochistan’s Water Resources

Sr. In Million Acre Feet (MAF)
Description
No Available Utilized Balance
A. Indus Water as per Indus Accord
1 Perennial 3.870 3.052 0.820
2 Flood 4.620 - 4.620
Total 8.490 3.052 5.438
B. Non Indus Basin
1 Flood Runoff 12.756 3.000 9.756
2 Groundwater 0.870 0.490 0.380
Total 13.626 3.490 10.136
G. Total 22.116 6.542 15.574
Source: Irrigation Dept. Brief, GoB(Note: slight calculation differences may arise, purely as a result
of rounding off)
Priority Areas
6.2.5 Government has undertaken considerable investments in the water sector in the past, which have
led to greater agriculture productivity and increase in incomes especially in the horticulture. Water
however continues to be scare and requires a scientific conservation and management to be able to
fulfill the growing needs of increasing population. These demands have led to over extraction of
groundwater in the river Pishin-Lora, Nari and Zhob basins leading to dangerous lowering of water
table. The tube well subsidy on electric tariff has cost huge resources; non judicious use of precious
water and wasteful use of electricity. Further the water productivity compared to the costs is
significantly low requiring a review of water usage to bring greater efficiency in the water use. In
the Indus Basin Irrigated System of Pat Feeder and Kirthar Canal, non-efficient use of water is
leading to water logging and salinity. These practices are further converging into a systematic
neglect of Sailaba and rain fed Khushkaba farming systems with adverse impacts on recharge of the
groundwater.

Table 6.5: Balochistan Irrigation Sector Allocation 2012-13 (Rs. in million)
Estimated Costs Allocation 2012-23
2012 Forward
Surface Water
On-going 35 3,021 1,500 4,521 1,790 516 1,177 1,693 1,039
Surface Water
New 109 1,686 1,686 1,521 1,521 165
Dams On-
going 10 1,625 1,625 804 184 184 637
Dams New 22 723 723 448 448 275
Total 176 7,055 1,500 8,555 2,594 2,669 1,177 3,846 2,116
Source: Irrigation Department, GoB (Note: slight calculation differences may arise, purely as a result of
rounding off)
6.2.6 GoB recognizes the significance of the traditional farming systems and their importance for water
recharge. The present investment portfolio is sparsely spread into many small and individuals’
sponsored schemes. There is realization that there is need to prioritize schemes on the basis of
larger and sustainable benefits. There are presently 176 schemes in the provincial PSDP, both On
surface Irrigation and Dams component and these require Rs.2.1 billion for completion (Table 6.5).
In the meanwhile the provincial Irrigation department has evolved a priority portfolio comprising of
major storages and the GoB plans to finance a few of these through own resources.
6.2.7 Some major water storages/dams have been constructed with the help of the federal government
such as the Mirani Dam and the Sabakzai Dam. GoP is presently financing 8 major schemes on
irrigation costing Rs. 27.98 billion and of which Rs. 11.7 billion is remaining. These include
interventions like Phase I & II of the 100 Dams; construction of Delay Action Dams for recharge of
groundwater in the Pishin, Mastung, Quetta and Mangocher valleys etc. GoB would engage with
Federal Government to complete most of these schemes in next one year by allocating the
remaining funds and to support a few important storage projects identified by the provincial
Irrigation Department.
Table 6.6 Status of Irrigation Schemes in Federal PSDP (Rs. in million)

Sr. Estimated Expend June Allocation Throw
Name of Project
No Cost 2012 2012-13 Forward
Construction of 100 Dams in
1
Balochistan (Package-1)-20 Dams 2,467.714 1,946.933 520 0.781
Toiwar/ Batozai Storage Dam,
2
District Killa Saifullah 4,344.743 842.568 1,000 2,502.175
Delay Action Dams Groundwater
3 Recharge of Pishin, Quetta, Mastung
&Mangocher Valleys 1,099.833 863.767 335 --
Extension of Pat Feeder Canal for
4
Utilization of Indus Water 5,769 3,509.055 800 1,459.945
Re-construction of ShadiKaur Dam,
5
Gwadar 4,149.2 1,751.45 1,100 1,297.75
6 Flood Dispersal Structures/
6 Conveyance on Nari River,
Dist.Bolan 4,912.386 1,307.138 1,500 2,105.248
Restoration of Bolan Dam, Dist.
7
Kachi 593.43 24.568 10 558.862

Sr. Estimated Expend June Allocation Throw
Name of Project
No Cost 2012 2012-13 Forward
Construction of 100 Dams (Package-
8
II)-26 Dams 4,647.43 180 700 3,767.43
Total 27,983.736 10,425.479 5,965 11,692.191
Source: Irrigation Department, GoB
6.2.8 Balochistan’s water resources’ future lies with floodwater as this is by far the largest resource of
water in the province and of which over 60% of potential is available which can be secured through
better water management and storages. This will require innovative approaches to shift people
towards river basin management by using the basin balance water including the historical water
rights. There are 14 major river basins and people will move towards proposed management by
limiting the energy use through reduced subsidy which would be phased off. The new strategy must
according work on the basis of specific River Basins as has been proposed earlier in the Balochistan
Report (2012). This way forward is based on efficient and equitable water sharing and will usher in
greater responsibility for water use for greater productivity and incomes.
6.2.9 For this the GoB would prioritize investments into a) Water Development and Management
projects; Basin –Wide; b) Improvement in the performance of Pat Feeder and Kirther Canals. These
would concentrate on a) construction of series of storages along the river basin with spate irrigation;
b) bringing in high efficiency irrigation systems to reduce use of energy and water; c) Spate
irrigation for Sailaba farming to enhance cultivated land and bring in new livelihoods. Similarly the
canal water performance would include; a) improving canal operations for more equitable water
distribution; b) use of high efficiency water system to reduce water wastage and crop diversification
and c) Integrated management of canal and drainage system and reuse of drainage water after
treatment. The present cropping pattern and the crops value requires a rethinking on the crops and
water usage. All this requires creating earlier proposed Balochistan Water Resource Management
Authority for implementation of the IWRM policy by creating Basin Water Boards to manage the
water at basin level.12
Strategy
i. Devolve water resource management at basin-level for a more equitable, responsible and
integrated and sustainable water use at this level through participatory management.
ii. Undertake construction of water storages/dams and spate irrigation systems for integrating the
storage water and Sailaba farming. GoB has identified storage dams under its priority list. These
may be undertaken urgently in alignment with basin-level development and management.
iii. Extensive encouragement of Sailaba farming integrated with dams command area for bringing in
additional land under cultivation and generating new livelihoods
iv. Improvement in the canal operations for Pat Feeder and Kirthar Canal for a more equitable water
distribution. Encourage use of high efficiency water system to reduce water wastage and crop
diversification.
12
Balochistan; Development; Issues & Prospects; Part II, 2012; World Bank.

v. Encourage integrated management of canal and drainage system at the canal command area and
reuse of drainage water after treatment. The present cropping pattern and the crops value does not
commensurate with the water value requiring a rethinking on the crops and water usage.
vi. Encourage the private sector to initiate local manufacturing of Drip and Sprinkler irrigation
systems in Balochistan by providing upfront buy back guarantee for equipment for first two years
and by announcing an acceptable level of layers of subsidy on the equipment for different
category of farmers. The higher efficiency irrigation systems will need to be popularized across
Balochistan for a very efficient water use. This will not be possible by way of according huge
subsidies on imported equipment year after. Other than being extremely expensive and
unsustainable. The only sustainable way forward is to encourage private sector to invest and this
can be done in multiple ways. Local manufacturing will bring down prices as demand increases
and this will bring in benefits of technology at doorstep with after sales service, spare parts and
replacements etc.
vii. Re model the tube wells prior to the installation of drip irrigation to reduce consumption of
electricity. Installation of new agricultural tube-wells to be discouraged in the over-drawn basins
and attention to be given to interventions for recharging the basins. Installation of tube-wells for
drinking purposes would be restricted only in case of replacement of dried wells. For the coastal
areas including Gwadar, the concept of skimming dug-wells to be introduced as tube wells are
likely to induce the intrusion of seawater into the thin freshwater aquifers in these areas.
viii. GoB will create an Apex body; a Balochistan Water Resources Management Authority
(BWRMA) for water regulation policy measures and implementation of IWRM policy:
o Under this, Basin Water Boards would be set up represented by local community and
farmers for participatory management of water resources at basin-level.
o Existing set-up of the BIDA would be examined and options for establishing the Basin
Water Boards for Pat Feeder and Khirther canals would be assessed.
o A “Water Conservation and Management Fund” would be constituted under the BWRMA
as a Rolling Fund for undertaking multiple small works; maintenance under the integrated
water management.
ix. Strengthen water management research institutions to undertake research for addressing the needs
of the sector and evolve in-service training programs mandatory for promotion of
technical/managerial manpower in water sector institutions.
Table 6B: Irrigation Water (Rs. In million)

Sr. Strategy FY 1, FY3, FY5, FY6, Total Proposed
Spate Irrigation for Sailaba farming
1 ( New Livelihoods in all the major
River Basins 2,000 4,000 6,000 12,000 9,000
Improved Water Management in
2
Canal Command areas 1,000 2,000 4,000 7,000 5,250
Land Reclamation and Re use of
3
Drainage Water after treatment 300 850 1,100 2,250 1,688
Drip & Sprinkler Irrigation
4
Manufacturing under PPP 1,000 3,000 6,000 10,000 -

Sr. Strategy FY 1, FY3, FY5, FY6, Total Proposed
Dams identified under Priority by
5
Irrigation Dept. 8,000 8,000 18,000 34,000 -
Creation of IWRMA; Basin Water
6
Boards 123 241 369 733 550
Capacity Development of Irrigation
7 Dept. 80 80 90 250 188
8 Throw Forward of Existing Schemes
2,100 - - 2,100
Total 14,603 18,171 35,559 68,333 16,676
6.3 Water & Sanitation
6.3.1 Safe drinking water is vital for sustainable development as availability of safe drinking water can
contribute tremendously towards human health and ensure a more productive workforce. It is true
that there is no greater basic human need than access to safe drinking water and adequate sanitation.
The situation in Balochistan however continues to be grim. Leaving aside Quetta Zarghoon which
has about 98% improved drinking water resources; a large part of the province has less than 50%
availability of “improved water source”. The improved sources include piped water, public stand-
pipe or tap, hand pump, donkey pump or protected well. Unimproved sources include unprotected
dug wells, ponds, rivers, canals or streams as well as other less common sources such as vendor
provided, tanker truck or bottled.
Figure 6.2: Balochistan Sources of Drinking Water (PSLM 2010-11)
mineral water, .1 other, 4.1 piped water

tanker/water (inside house) ,
barier, 3.2 21.1
river/stream/cana out door tap, 14.2

l, 29.7
open well, 13.4 hand pump, 9.6

motor pump, 2.3
closed well, 2.4
6.3.2 According to PSLM (2010-11) approximately 21% population relies on piped water inside and
14.2% on outdoor tap and another 12% on hand pump, other pumps and closed well. About 48% of
people rely on unimproved water sources. There is considerable variation amongst urban and rural
areas. In urban areas 74% people rely on piped water in the households whereas large part of rural
areas rely on unimproved sources and about 30% depend on river, stream, pond or canal. There are
considerable intra-district variations on the availability of improved water resources:
o Quetta, Pishin and Sibi are the three districts having more than 70% reliance on piped water
inside compound.

o District Musakhel, Sherani, Jhal Magsi, Washuk and Dera Bugti have less than 5% piped
water source whereas Kohlu, Barkhan, Jafferabad, Panjgur, Harnai and Chaghi have less than
15% piped water within households.
o 14 districts have over 50% reliance on the river, canal, stream , pond water or other sources
which includes; Bolan, Jhal Magsi, Sherani, Musakhel, Zhob, Washuk, Awaran, Harnai, Dera
Bugti, Kohlu , Ziarat, Nushki, Chaghi and Killa Abdullah.
o Three Districts rely more than 50% on Wells, open or closed for drinking water source and
these are: Kharan, Kech and Panjgur.
6.3.3 The MICS 2010 assessment of the population in Balochistan using improved sources of water is
significantly higher than the PSLM data. According to this, 74% of the population in the province is
using improved source of water and of the 91% in urban areas and 69% in rural areas. Households
where the head had some education were more likely to be using improved source of water
compared to those where the head of household had no education. Also the use of improved source
of drinking water was positively related to economic conditions of the households.
6.3.4 In terms of in-house water treatment, 86% households do not use any water treatment methods such
as boiling; adding bleach/chlorine; using water filter etc. to make it safe for drinking. Only 7% of
population was using any type of water treatment method. What is more worrisome is that among
the households receiving drinking water from un-improved source, less than 4% were treating it for
making it safer.
Sanitation
6.3.5 The situation on the sanitation side reflects slight improvement compared to what it was about a
decade ago when an overwhelming 91% population had no access to any system of sanitation and
of which 98% was rural population. As per PSLM 2007-08, the percentage of population in
Balochistan with access to sanitation facilities remains low at 32%, however the prevalence of
underground, covered or open drains have all improved. In 2008, only 19% urban population was
without access to any type of sanitation facility, whereas a huge 86% of the rural population in the
province had no access to sanitation facilities (Table 6.7).
Table 6.7: Type of Sanitation Facility Used by the Households in Balochistan

2001-02 PIHS 2007-08 PSLM
Type of Sanitation Urban Rural Overall Urban Rural Overall
Underground Drains 5 0 1 24 3 9
Covered Drains 5 0 1 10 1 4
Open Drains 52 2 8 47 9 19
No System 37 98 91 19 86 68
Total 100 100 100 100 100 100
Source: PIHS 2001-02 and PSLM 2007-08(Note: calculation differences may arise, purely as a result of
rounding off)
6.3.6 MICS data shows better scenario. According to this 70% of population was living in households
using improved sanitation facilities, much higher in urban (93%) compared to rural areas (63%).
About (23%) of population had no sanitation facility and resorting to open fields/bushes for
defecation. A more segregated information region wise shows extremely poor situation in Zhob,

where 48% population was using unimproved sanitation facility and within this 41% had no
facility at all. Similarly 31% population in Nasirabad; 27% in Kalat and 24.5% in Sibi had no
access to any sanitation system and used fields/ bushes for defecation.
Table 6.8: Sanitation Facility (in %)

Region Improved Unimproved No Facility
Sanitation Sanitation Bush /Field
Quetta 81.3 18.6 8.5
Kalat 71.7 28.3 27.2
Sibi 72.3 27.5 24.5
Zhob 51.8 48.6 41
Nasirabad 65.1 34.8 31.1
Mekran 89.6 10.5 9.4
Source: MICS Balochistan 2010-11
Priority Areas
6.3.7 GoB under BCDS will provide special attention to the sector for improving the investments as well
as the operations of this sector. The biggest challenge facing the water & sanitation sector is
institutional as the overall institutional responsibilities; jurisdictions; budgets and manpower remain
extremely chaotic and weak. The situation has remained so for a long time like this. Despite
devolution where dedicated TMA authorities were designated at tehsil/ sub-divisional level, a large
part of the water supply schemes were being handled by the PHED. These TMAs throughout their
existence faced issues on availability of technical manpower other than sufficient budgets.
6.3.8 Subsequent to the reversal of devolution; and revival of the 1979 Local Government system, the
situation has further deteriorated. The water supply portfolio is now with the PHED solely and with
some dedicated Water Sanitation Authorities like Quetta Municipal Corporation. The Municipal
Committees and Town Committees receive bare minimum of funds and these do not have the
systems; manpower and the budgets to attend to this huge challenge on account of water &
sanitation.
Table 6.9: Balochistan's Water Supply & Sanitation Allocations FY 2012-13

Estimated Costs Allocation 2012-23
(Rs. In million) (Rs. In Million)
2012 Forward
Water Supply
On-going 53 3,899 1,124 5,023 2,058 597 377 974 1,992
New 69 1,506 1,506 1,286 1,286 220
Total 122 5,405 6,529 2,058 1,883 377 2,259 2,212
Sanitation
On-going 13 883 883 327 211 211 345
New 40 875 875 773 773 102
Total 53 1,758 1,758 327 984 984 447
Source: GoB Budget 2012-13(Note: calculation differences may arise, purely as a result of rounding off)

Strategy
i. GoB plans to develop a baseline for the population which does not have access to safe drinking
water and sanitation facilities and prepare a 3-year plan for providing drinking water and
sanitation to this population.
ii. GoB to undertake implementation of an Integrated Water & Sanitation investment portfolio in
partnership with local communities including women organizations for at least 5000 rural and
semi -urban settlements in the province. This may also be implemented with the support of
donors and with a strong third party monitoring framework.
iii. Strengthen these Water & sanitation institutions through improving systems; manpower and by
providing required investment funds and operational funds.
iv. Evolve UC wise local community groups to officially partner with the Town and Union Councils
for prioritizing schemes and developing partnerships for sharing costs and responsibilities and
monitoring.
Table 6C Water & Sanitation (Rs. in million)

Sr. Strategy FY1, FY3, FY5, FY6, Total Proposed FA
Institutional Strengthening of
1 916 318 - 1,234 700
Municipal Organizations
Baseline Study of households
2 without access to drinking water & 150 100 - 250 250
sanitation
Integrated Water & Sanitation
3 Program through Community 2,000 2,000 6,000 10,000 6000
participation
Rehabilitation of Water &
4 500 500 2,000 3,000 -
Drainage Schemes
Capacity Development of LG
Dept. for regulating water quality;
5 20 60 20 100 -
overseeing implementation &
Impact assessment
Throw Forward of Existing
7 1,000 1,700 - 2,700 -
Schemes
Total 4,586 4,678 8,020 17,284 6950
6.4 Energy and Power

6.4.1 Balochistan presents an unfortunate scene on the energy front. A province which is rich in energy
resources including oil, gas, coal and renewable energy etc. and has been the major supplier of
natural gas for the country since the 1950s relies for heating and cooking purposes on bio mass
energy like firewood, animal dung and agriculture waste. Due to limited gas supply network natural
gas consumption in the province is extremely low.

Table 6.10 Natural Gas Production (in mmcf)
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
Balochistan 336,493 330,032 318,188 319,578 305,359 288,393 280,072
Pakistan 1,344,953 1,400,026 1,413,581 1,454,194 1,460,679 1,482,847 1,471,591
25% 24% 23% 22% 21% 19% 19%
6.4.
2 Source: Balochistan Development Issues & Prospects; Part II, World Bank 2012
Commercial energy usage in Balochistan is lower than the national average. In 2010 –11, it
accounted for 2.2% of the nation-wide use of energy. Balochistan’s share in Pakistan’s
consumption of petroleum products was about 2.8%, for natural gas it was 1.5% and for electricity
5.25%. Electricity consumption is slightly higher than the national average primarily on account of
subsidy on electric tube wells. 75% of Balochistan’s electricity consumption is because of use of
agricultural tube wells, whilst 90% of gas consumption is towards power generation. Excluding the
quantum electricity and gas consumed for these purposes, the per capita consumption of these fuels
in Balochistan is about one quarter of the national average. Only a minority of the current estimated
population of about 9.6 million has access to electricity. There are only 406,000 electricity
consumers and power supply being highly erratic; it results in lowest per capita power
consumption.
6.4.3 Coal is the most common fuel for utility and industrial energy generation and given the ever
increasing furnace oil prices and depleting gas reserves in the country, this is the most economical
energy fuel. Balochistan has proven coal resources of 217 million tons, with measured reserves of
over 52 million tons. There are five coalfields: namely Khost Shahrig Harnai, Sore Range Dagari,
Duki, Mach and Pir Ismail Ziarat-Chamalang, which are all well-developed today. At present, an
average of two million tons of coal is being mined annually from these fields, which is more than
half of the coal extraction at national level. 90% coal is dispatched to other provinces for various
uses and applications. Balochistan can therefore very well use this coal for establishing coal fired
Power Plants at mine mouth or nearby locations for easing the electricity requirements in the
province.
Table: 6.11 Energy Consumption by Sector 2010-11 (Excl. Power & Fertilizer Feed stock)
Domestic Commercial Industry Agriculture Transport Others Total Balochistan’s
/Gov't Share
Balochistan
Oil (bbtu) 50 0 1,093 5 11,628 184 12,961 2.75%
Gas (MMcf) 9,019 649 197 0 827 0 10,693 1.49%
LPG (tonne) 10 5 1 0 0 0 16 3.44%
Electricity
(GWh) 464 94 114 3,265 0 111 4,048 5.25%
Coal (tonne) 0 0 0 0 0 0 0
Total 9,544 748 1,406 3,270 12,456 295 27,718 2.18%
Pakistan Total
Oil (bbtu) 3,693 0 56,827 1,772 392,711 16,440 471,442
Gas (mmcf) 232,325 36,479 335,499 0 113,095 0 717,398
LPG (tonne) 259 182 25 0 0 0 465
Electricity 35,885 5,782 21,207 8,971 1 5,253 77,099
(GWh)
Coal (tonne) 0 0 7,558 0 0 0 7,558

Total 272,161 42,443 421,115 10,743 505,806 21,693 1,273,962
Source: Balochistan Development Issues & Prospects; Part II, World Bank 2012
6.4.4 On the electricity side; the installed power generation capacity in Balochistan is about 650 MW
being generated from two power plants in the country namely the Uch Power Project (585 MW)
and Habibullah Coastal in Quetta (50 MW). Uch Plant receives its’ gas from the Uch Gas Field,
whilst Habibullah receives gas from the SSGC network. The Uch field’s reserves are larger than
what is required by the power plant; therefore, the GoP has sanctioned a second power plant (Uch
II) in the same area.
6.4.5 Renewable energy, both solar and wind, has a lot of potential in Balochistan. The Nokundi and
Chagai region have both been declared a ‘wind-corridor’, on the basis of a study financed by
USAID. Balochistan’s wind resource potential was estimated to be more than 20,000 MWs. Around
40% of the land area of Balochistan receives direct solar radiation, which has the capacity to
generate as much as 1.2 million MW of electricity. However, these estimates (both wind and solar)
are based on GIS data and / or satellite imagery. Also, many areas in the province are not
connected, or are not close to the transmission grid. The province’s demand for electricity is
scattered over a very large geographic area. Developing the wind and solar potential of the province
will therefore require significant amounts of financial resources, since these projects are capital
intensive.
Strategy
i. GoB plans to seek private sector interest to establish 150 MW power projects’ using its
indigenous coal in northern region at mine mouth i.e. at Loralai as well as Quetta. For this it
plans to invest in the equity for encouraging private sector interest in strategic utilization of its
indigenous resource.
ii. Simultaneously, GoB plans to negotiate with GoP for allocation of additional Natural Gas for
use in Balochistan in accordance with the constitutional framework. This will enable GoB to
attract industry in different regions including Quetta, Loralai, Hub, Gwadar as well as other
places.
iii. With this additional Natural Gas; the Government plans to set up a 100 MW gas-based thermal
power project at Hub with agreement to supply dedicated power to different regions in
Balochistan both for commercial, industrial and domestic use. GoB would participate in the
project through equity contribution.
iv. Undertake initial studies, data and institutional strengthening for the setting- up of off-grid,
solar power projects for providing electricity to sparsely populated settlements. This may be
taken up proactively with donor support and in case of non-availability of such support, GoB
may avail of only technical assistance to prepare feasibility and carry it forward through its
own resources.
v. Simultaneously GoB would engage with AEDB for establishing wind masts in the western
region of the province for recording wind speed data.

vi. For long term big power projects; the GoB may initiate the initial work relating to developing
and adoption a Policy Framework and Security Package, and an adequate institutional
capacity.
Table 6D Energy (Rs. in million)

Establish two 150 MWs each
1
Coal- Based Power Projects 3,000 4,000 5,000 12,000 -
Utilize Indigenous Gas to set
2
up a 100 MW power project 2,000 3,000 2,500 7,500 -
Develop Policy Framework;
3 Incentive regime; capacity and
feasibilities 141 200 58 400 400
Institutional capacity for
4 Solar/Wind Power Projects 100 100 - 200 200
5
Schemes 418 - - 418 -
Total 5,659 7,300 7,558 20,518 600

07
Economic Growth

7. Economic Growth
i The ultimate success of implementation of the development strategy would be the visible gains on the
overall human development and formation of a human capital which can then steer the growth paradigm
in the long term. Simultaneously, the early signs would be gradually building up the infrastructure and
enabling environment for creating nurturing space for the businesses to grow as well as enter
Balochistan’s markets and create the badly needed greater and better jobs and incomes.
ii The Balochistan Comprehensive Development Strategy’s core objective is to re direct the public
expenditure into sectors and such components which can help in pushing up the provincial GPP’s
growth rate to around 7% annually over the next two decades. It is this growth which can create
employment for the new labor force as well as for the existing. The labor force in the province has
been estimated to grow at the rate of 2 to 2.5% a year and the elasticity of employment to the
growth in GDP has been estimated to be about 0.5%. Hence in order to absorb the labor force
growth, a GDP growth of 6.5 to 7% is required for next two decades or so.13
7.1 Private Sector Development and Financial Intermediation

7.1.1 GoB is aware of the importance of private sector, which is the engine of innovation, investment and
growth and it is realized that it is private sector which will bring- in growth, however such growth
requires conducive investment policies, regulation and certain critical inputs including
infrastructure and skilled manpower. In Balochistan most of the pre -requisites for strong private
sector participation are somewhat weak and among others the markets are also weak. In capital
market economies, it is the competitive markets which facilitate demand and supply and creation of
wealth and jobs for all, on sustained basis. Given the multiple impediments in the way of private
sector development in the province, the GoB plans to undertake special measures for strengthening
the private sector in different ways.
7.1.2 Agriculture constitutes over 30% of the GPP and despite its large share is constrained due to very
little value addition whereas trade and industry are concentrated in few urban centers with
somewhat limited spread affects. According to the latest establishment survey there are about
150,000 enterprises in Balochistan about 70% in the trade sector. Most are dependent on local
market and cater to the needs of a small, low income clientele. Marketing outside the area is limited
by infrastructural barriers as well as by the absence of marketing skills. The typical trading
enterprise is a family business often relying on formally unpaid labor and with weak links with
enterprises along its supply chain. The cost of doing business is especially high for small
enterprises because regulatory procedures – registration, taxation, and inspection procedures are not
embedded in socially legitimated bazar practices.
7.1.3 The cost of doing business in Balochistan is higher than almost anywhere in Pakistan. On the basis
of an overall Doing Business Index; Quetta ranks 12th amongst 13 Pakistan cities. 14 It is
particularly cumbersome, time consuming and expensive to enforce contracts, register property,
obtain construction permits and organize trade in the case of Quetta businesses (on the other hand
starting a new business and paying taxes is relatively easy in Quetta). This indicates the need for a
major overhaul of the public administrative structure regulating business operations. Clearly there
are too many regulatory tiers of authority that can be eliminated or intuitionally subsumed within
the system for facilitating business operations in the region.
13
Balochistan; Development Issues and Prospects; Part 1; (2012) World Bank
14
World Bank; Doing Business in Pakistan (2010)

7.1.4 Private sector development is also constrained due to continued lag on education where the labor is
predominantly illiterate and there are limited technical and managerial capacities to steer the
businesses. Weak presence of financial institutions and low credit availability is another crucial
factor which impedes investments in almost all sectors. In addition, lack of adequate infrastructure
especially transportation; energy and water also impedes business growth. All these major factors
work as a vicious cycle of weak inputs of capital, labor and knowledge leading to low productivity;
small profits, savings and investment.
Table 7.1: Costs of Doing Business in Pakistan 2009 (Ranks)

City Ease of Starting Dealing with Registering Paying Trading Enforcing
Doing a Construction Property Taxes Across Contracts
Business Business Permits Borders
Faisalabad 1 2 6 1 3 4 2
Multan 2 6 1 7 3 5 4
Lahore 3 3 3 4 3 13 8
Islamabad 4 1 8 3 1 11 10
Sheikupura 5 9 8 5 3 7 6
Gujranwala 6 13 2 6 3 10 4
Sukkur 7 10 4 10 11 3 1
Peshawar 8 3 6 9 10 8 8
Karachi 9 3 10 11 11 1 3
Rawalpindi 10 8 5 7 3 12 10
Sialkot 11 12 11 1 3 5 10
Quetta 12 6 12 13 2 9 13
Hyderabad 13 11 13 11 11 2 7
Source: World Bank, Doing Business in Pakistan (2010)
Financial Sector in Balochistan

7.1.5 Bank credit is unquestionably an important determinant of the level and composition of economic
activity in any region. Balochistan comes out as a most credit starved province in the country
having a share 0.34% in total bank credit of the country in 2011-12. As against total bank deposits
of Rs. 138.17 billion in the province, the credit disbursement was only Rs.12 billion in the entire
province, which works out to be a credit to deposit ratio of 8.69%, the lowest in the country.15The
Rs. 12 billion credit includes Rs. 3.79 billion of SME credit as well as Rs. 315.8 million s ZTBL’s
Agriculture Credit The size of deposits and advances indicates that the bank branches are primarily
just collecting deposits’ in most of the province and a preponderant percentage of which is utilized
outside Balochistan. In terms of presence, there are only 314 bank branches of scheduled banks, 19
booths, 41 branches of Islamic banking and 16 sub branches. These bank branches are mostly
concentrated in a few districts.
7.1.6 Not only is the financial sector weak and thin, it’s characterized with gross inequities, particularly
in the utilization of bank credit. Balochistan’s three districts namely Quetta, Jafferabad and
Nasirabad utilize about 75% of the total credit disbursed in the province. If we add Loralai, Lasbela
and Turbat, to these, it then constitutes over 85% on an average in the last 5 years. This reflects a
marginal availability of financing in large part of the province. Compared with credit utilization,
the bank deposits are also concentrated in Gwadar, Turbat, Lasbela, Quetta, Killa Abdullah,
Khuzdar and Jafferabad.
15
State Bank of Pakistan 2012

Table 7.2 Balochistan Credit and Deposit Concentrations (in %)
Credits Jun-08 Jun-09 Jun-10 Jun-11 Jun-12
Quetta, Jafferabad, Nasirabad 74.02 69.1 77.04 76.29 82.91
Quetta, Jafferabad, Nasirabad, Loralai,
Lasbela & Turbat
85.4 84.87 86.4 83.83 88.4
Source: State Bank of Pakistan 2012
7.1.7 Balochistan’s share in the SME sector is also dismal. It works out at less than 2% of the total SME
credit in the country. The share of borrowers is slightly higher at around 3%, which could mean that
the size of credits is smaller. Again, there is heavy concentration of utilization of SMEs financing in
three districts namely Quetta, Nasirabad and Jafferabad. Roughly similar is the position with
respect to the financing by the micro-financing banks (MFBs) although the level of total operations
is very small. As of June 2010, financing was utilized by only eight districts and only by 4 districts
by June 2011 and June 2012. The total amount of micro credit disbursed in Balochistan was Rs.155
million and it was accessed by 18,256 borrowers. The share of Balochistan in the micro finance
works out to be 0.44%.
Table 7.3 Balochistan SME Credit

Jun-12 Dec-10
No. of Outstanding Amount No. of Outstanding Amount
Borrowers (Rs. In million) Borrowers (Rs. in million)
Pakistan 147,286 245,544.16 211,442 334,221.35
Balochistan’s Share
4,681 3,794.39 6,518 4,941.205
Balochistan’s Share in %
3.18% 1.54% 3.08% 1.48%
7.1.8 Equally disturbing is the situation on Agriculture, which is the backbone of the provincial economy.
It can be seen from Table 7.4 that Balochistan’s total share has not exceeded 0.5% in last five years.
In terms of sectors, agriculture, manufacturing, construction and commerce and trade utilized bank
credit in the amount of Rs. 5.343 billion or 85.4% of the total credit of the private sector and 44.5%
of the entire bank credit in the province. If transport and storage sector is included the targeted
beneficiaries will increase to 91.14% of the credit in the private sector and 47.5% of the total credit.
Table 7.4 Balochistan's Share in Agriculture Credit (Rs. in million)
Category Jun-08 Dec-08 Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12
Punjab 1,507,138 2,49,393 1,80,159 9,77,614 2,24,455 1,60,259 1,004,486 2,13,507 1,54,023
Sindh 2,09,823 35,378 30,857 100,005 30,503 23,522 1,04,429 26,734 20,310
KPK 63,761 7,957 8,524 53,832 7,030 7,681 5,735 6,519 7,338
Balochistan 5,103 279 825 1,556 247 787 2,292 577 768
AJK 18,447 591 690 12,901 546 660 10,678 482 566
Gilgit
Baltistan 3,125 253 476 1,313 241 399 1,684 301 410
Balochistan
Share 0.280 0.095 0.370 0.140 0.094 0.400 0.196 0.230 0.420
Source 1: State Bank of Pakistan 2012

7.1.9 Given the dismal situation of the financial sector in Balochistan, the GoB plans to engage with the
State Bank of Pakistan on how to get out of this catch-22 situation of small finances, small
businesses, and low credit worthiness. The GoB would float a proposal to convert a part of the
profit accruing from the deposits in Balochistan into a Credit Guarantee Scheme, to encourage
greater financing. GoB would however evolve a Credit Guarantee Scheme through its own
resources in consultation with SBP for ensuring expansion of the financial sector in Balochistan
both in terms of the size of disbursements as well as its reach out in all regions of the province and
to almost all important sectors. Amongst others, the issue of acceptable collateral as well as
transactions in English language would also require solutions for an effective reach out.
7.1.10 In addition to above, GoB would establish the Balochistan Board of Investment for creating an
institution which can act as one window for facilitating investments in the province, both local as
well as international. A dedicated fund, Balochistan Enterprise Development Fund, would be
created for supporting small and medium enterprises in the province through multiple measures
including subsidy on credit, technical and feasibility studies, matching grants for certain strategic
investments and so on.
Public Private Partnerships (PPPs)

7.1.11 One of the ways to encourage greater participation of the private sector in the province and to
encourage greater efficiency and investment in infrastructure could be through use of Public Private
Partnerships (PPPs). Encouraging use of PPPs for infrastructure building and for social services
could be particularly beneficial for Balochistan as underinvestment over many decades has created
bottlenecks which may take some time to overcome and PPPs if undertaken appropriately can
provide an impetus to a significant segment of economic activities.
7.1.12 Public Private Partnerships (PPPs) are basically contractual arrangements between the public sector
and a private party for the private delivery of public services, in particular infrastructure services.
These range across service contracts, management contracts, leases, concessions such as build-own-
operate-transfer, divesture, and build-own-operate contracts etc. Some of the things which could be
undertaken in the provincial context are private sector management of utilities, private investments
in road sector, agriculture markets, power projects, construction and operations of harbors,
establishing and operating tourist resorts and these could also be undertaken for social sector
projects.
7.1.13 GoB is cognizant of the potential and plans to gradually put in place policy, institutional, financial
and risk sharing mechanisms. As the PPPs require considerable effort at institutional development
as such, GoB is considering seeking technical assistance of one of the international donors for
supporting capacity development together with legal and institutional framework. Also this requires
consistent capacity building for project development, procurement, risk evaluation, finalizing
contracts and concessions etc. This will also necessitate creation of a Viability Gap Fund (VGF) for
financing such projects that have viability gaps despite being viable economically.
Private Sector Development
7.1.14 The Government plans to encourage expansion of the private sector by creating enabling
environment including security and stability. Second it will evolve policy frameworks that allow
adequate returns and premiums with the challenging situation in the province. The other essentials
are availability of land with clear titles, the availability of skilled labor force, availability of
infrastructure, affordable finance and enforcement of contracts, etc. In the existing circumstances
of Balochistan, certain pre-requisites for the participation of the larger private sector including
multinational companies are likely to remain weak in the short term. GoB accordingly plans to

reach out to the local private sector through different instruments such as strengthening of
enterprises through improvements of their systems, manpower and business plans. Technical
assistance with feasibilities and attaining financial close are few of direct strengthening measures
which can help the private sector in Balochistan.
Strategy
7.1.15 GoB under the BCDS, plans to undertake interventions which will help to spur private sector
participation in the economy within the medium term.
i. Establish a Balochistan Board of Investment (BBOI) preferably under a chairman from the
private sector and representation of motivated personnel from private sector and public
nominees to work with the government and the private sector for fostering better investment
climate. Balochistan is endowed with innumerable resources which require investments at
both national and international level. It requires development of an investment profile which
can be exhibited and marketed for soliciting proper investments in multiple sectors. The
BBOI to work as a One Window operations facility for facilitating required approvals and
sanctions from a range of public sector offices.
ii. GoB will set-up a Balochistan Enterprise Development Fund (BEDF) under the BBOI for
supporting enterprises in multiple sectors. The support could be through technical assistance
in the form of feasibilities, documentation, linkages, credit subsidy, matching grants, etc.
iii. Initiate work on establishing Legal and Institutional Framework for Public Private
Partnerships by creating a dedicated PPP unit. It simultaneously requires creation of Viability
Gap Fund (VGF) and subsequently a Risk Management Unit as well. GoB may contact one
of the multi-lateral donor partners for technical assistance for the capacity development as
well as helping GoB to undertake one project for implementation under PPP mode.
iv. Undertake a dedicated Private Sector Development Program again with the help of
international donors. This requires working mostly with local enterprises for strengthening
their systems and businesses. It also involves market reforms to make these competitive.
Such intervention will require investment in research and knowledge management that can
make the investments profitable and encourage their participation.
v. Engage with SBP for negotiating multiple interventions which can facilitate expansion of
credit in the province. Credit for enterprises, including large and small industry, agriculture
including livestock, fisheries as well as micro credit for dedicated poverty reduction. GoB
may negotiate with SBP to convert a part of the profit on deposits accrued in Balochistan into
a Credit Guarantee Scheme for guaranteeing a part of the credit carrying slightly higher risks.
GoB will however create a credit Guarantee Scheme through its own finances in consultation
with SBP. The requirements on collateral require a review together with documentation in
English. The documentation may be converted into local languages for bringing in greater
confidence of the population in the banking transactions.

Table 7A: Private Sector Development (Rs. In million)
Sr. Strategy FY1, FY3, FY5, Fy6, Total Proposed FA
Establishing a PPP Unit & Risk
1 145 138 164 447 335
Management Unit in GoB
2 Setting Up a Viability Gap Fund 1,000 1,000 4,000 6,000 -
Establishing Board of Investment as
3 140 133 105 377 283
One Stop Window for Investment
Establishing Balochistan Enterprise
4 400 400 600 1,400 -
Development Fund (BEDF)
Strengthening Private Sector Firms;
5 capacity development; system 200 200 - 400 300
development program
Credit Guarantee for Overall Credit
6 (Agri, Livestock, Fisheries, 600 1,000 1,900 3,500 -
Enterprise, Industry etc.)
Total 2,485 2,870 6,769 12,124 918
7.2 Agriculture
7.2.1 It is indeed paradoxical that agriculture is the lead sector

of the economy given the fact that Balochistan is a
highly arid region, having extremely low precipitation
levels, limited canal command area and away from the
national corridor which links businesses and major
urban centers. This only reinforces the state of under-
development in the province where what could have
been its lead sectors like the petroleum and the minerals
have unfortunately either not contributed to its economy
or these have not been developed. Agriculture is thus
the mainstay of the economy contributing more than
30% to provincial GPP and with an overwhelming majority of the population who depends on it
directly or indirectly. The highly diverse agro-climatic zones in the province from coastal belt,
barren deserts, and fertile plains on one hand and higher plains to mountainous regions on the other
facilitate production of a wide variety of crops, vegetables and fruits. The sector however, has been
historically faced with huge fluctuations on account of weather conditions and will continue to be
faced with these in future and has to accordingly adapt to these volatilities within its policy
frameworks.
7.2.2 Presently about 2.1 million hectares are being cultivated in the province and there is around 3.99
million hectares of cultivable wasteland that can be brought under cultivation in case water
resources can be expanded.16 Balochistan’s value of agriculture production increased sharply by
about 150% in the period between early 1990s to mid-1990s primarily on account of product
diversification when farmers switched from field crops to vegetables and since mid- 1990s when
they switched from vegetables to fruits in response to output prices.17 This demonstrates that given
16
Balochistan Agriculture Statistics 2010
17
Pakistan’s Balochistan Economic Report. 2008. World Bank, Asian Development Bank and Government of Balochistan.
Report No. 40335 Pk. Volumes I and II.

the water constraints, the biggest gains of productivity would occur from high value products and
efficient use of water together with technology. Again the province’s own record reflects that these
productivity gains declined by 20% from mid -1990s to the early 2000 on account of drought.
Hence the major threat to the agriculture and livelihoods would continue to be from water
constraints propelled by weather uncertainties.
7.2.3 Notwithstanding the cyclic droughts and the production fluctuations, the process of change in
agriculture has moved ahead and there is already a small beginning such as introduction of micro
irrigation systems, chemical fertilizers, high yielding new crop varieties, plant protection practices,
mechanization and adoption of water management practices. Wheat and fruits are the two dominant
crops in the non- canal command area and wheat and rice in the canal command area. The main
products in the non -canal command area are fruits such as dates, apples, grapes, apricots, almonds,
pomegranates etc. Wheat production has been contingent to the cultivated area however the greater
productivity gain has been from the orchards which expanded from year 2000s onwards.
7.2.4 The Government is aware that the overall productivity continues to be low and that the water usage
is generally wasteful despite being a scarce resource. The public sector interventions have largely
remained low (Table 7.5) given the past fiscal constraints however; these have been slightly
inequitable and largely directed towards a smaller segment of the farming community i.e. canal
irrigation and the tube wells. Most of the agriculture schemes are small and these mostly relate to
on-farm water management. There is therefore a need to evolve a planned portfolio which firstly
attends to the larger segment of the beneficiaries and promotes productivity gains through greater
linkage with technology, markets and is sustainable.
Table 7.5:Agriculture Allocations FY 2012-13(Rs. In million)

No of Estimated Expenditure Allocation FY Throw
Schemes Cost June 2012 2012-13 Forward
Extension 31 1,412.68 474.96 720.40 217.33
Research 2 48.21 38.21 10.00
Agri Engineering 7 172.36 75.58 76.79 20.00
40 1,633.25 550.54 835.40 247.33
Source: GoB PSDP 2012-13(Note: calculation differences may arise, purely as a result of
rounding off)
Priority Areas
7.2.5 Government under the BCDS will address the major constraints faced by Agriculture to gradually
improve the productivity as presently the overall yields of most of the crops are lower than the other
provinces. Other than the endemic issue of water there are issues of lack of certified seed and other
inputs; the extension services are almost non-existent; the markets are small, few and weak and then
there are issues of infrastructure including transportation and storages etc.
7.2.6 GoB is cognizant that availability of water on sustainable basis will determine the future roadmap for
agriculture. The wasteful water mining practices have led to triple jeopardy of depleting water table;
strain on fiscal resources and wasteful use of electricity. It is widely recognized that the groundwater
management problems can be overcome by controlling over exploitation of water, introducing
legislation and strengthening institutions. GoB has made efforts in the past to recharge the water
tables through check dams, delayed action dams, ponds and dikes and rehabilitation of karezes
however these now require strategic shift towards an integrated but devolved water management at
the basin-level for a more equitable and sustainable water resource usage.

7.2.7 GoB will accord focused attention to harnessing of the un-utilized floodwater resource, which is by
far the largest water resource in the province. It will introduce well-planned investments in water
storages and other structures for bringing the 3.9 million hectares of cultivable waste under
cultivation. This will be done by encouraging the Sailaba farming, which can bring in additional 1
million hectares of land under cultivation and can generate livelihoods for about additional 200,000
households in the province.18 Coupled with the issue of harnessing more resources, is the challenge
of improving the water productivity all across. In the upper lands, the improvements in fruit yields;
varieties and post -harvest handling, together with efficient water use are major issues. In the canal
command areas, cultivation of water intensive crops like rice is proving to be detrimental to
economic use of water and is creating serious environmental degradation. The rice crop here,
consumes 60 inches of water per crop harvest causing water logging and salinity.
7.2.8 Agriculture extension work in the province has remained challenging given the peculiar socio-
economic and geographic conditions. The public sector extension staff, i.e. the Agriculture Field
Assistants are mostly untrained and do not possess the technical knowledge of agriculture and
further the system weaknesses have made the entire public extension system dysfunctional. GoB
acknowledges that it is now time to re think extension and explore possibilities of collaboration with
private sector for bringing in better reach out mechanisms through use of ICT. Though this would
initially pose a few challenges, however such extension through mobiles, call centers etc. have
succeeded in poor regions in Africa and are increasingly becoming popular in the under developed
world. Recent interventions in the Punjab on this account are reflected below:
Box- 7.1: Use of Technology for Agriculture Extension Services in Punjab
With a view to provide extension services to the small farmers, the Punjab Agriculture
Department has engaged Centre for Agriculture and Biosciences International (CABI), an
international organization to make use of mobile technology and reach out to thousands of
farmers through their cell phones. CABI is reaching out to these farmers through voice calls
and SMS and has translated the contents of SMS and voice messages in Urdu to overcome
literacy barriers of recipients. A help line has been activated to provide real time advice to
farmers for crops related issues, supported by a panel of field experts. This has created new
possibilities for reaching out to small farmers in far flung areas and builds their capacity in
crop management, pest management, productivity enhancement and other areas.
7.2.9 The use of ICT based extension services is doable even within the under developed rural settings
context in Balochistan. This will cut across the innumerable barriers to providing information and
knowledge to small farmers. The use of ICTs for agriculture extension is increasing in Asia and
Africa, especially with the recent expansion of mobile phones. Mobile Phones and ICT devices are
used to provide market information; advice on improved agriculture practices, farmer education,
input availability and their use and so on. This however will hinge on its design, connectivity with
people and some basic orientation of target beneficiaries for popularization.
7.2.10 Similarly there is very little presence of the private marketing companies both for supply of inputs
as well as for marketing of products. The public sector agriculture markets are riddled with
inefficiency and are dominated by the middle men. There are positive movements across the region
including many Indian provinces as well as within Pakistan in Sindh and Punjab to amend the
erstwhile Market Act 1939 by allowing greater participation of the private sector and encouraging
18
Balochistan; Development; Issues & Prospects; Part II, (2012) World Bank

reforms in the public sector sponsored markets. Encouraging vibrant agriculture markets can be
instrumental in stabilizing prices and providing greater returns to the growers. Non-availability of
adequate agriculture markets, storages, processing, packaging and cold storages are serious
constraints. At present there is only one wholesale fruit and vegetable market in Quetta which can
barely cater to the farmers in Quetta and its suburbs. There is no market in Mekran region, with the
result that the dates are taken to the markets in Sindh and are sold at a throw away prices. Nasirabad
and Jafferabad is the granary of the province and there is only a small grain market at Dera Murad
Jamali. Elsewhere, the farmers sell their produce to middle men without full knowledge about
prices.
7.2.11 The availability of quality seed, fertilizer and other inputs is another area of concern. Out of
country’s 367 registered seed companies, only 3 are located in Balochistan. The private sector
provided only 5.5% of seeds and public sector provided another 8.4%. Some major bottlenecks are
non -availability of adequate storage capacity. Also the system for certifying nursery stocks for
seedlings is also under developed. On the side of fertilizer and pesticides, the logistic impediments
have limited the presence of private companies and it is believed that many farmers do not make
adequate applications of these inputs. 19 There are very few research stations in Balochistan and
existing fleet of scientists is hardly capable to undertake research based on the farmers’ field issues
or evolve seed varieties, which can increase yields. There is only one Agriculture Research Institute
located at Quetta with 12 directorates mostly based in the divisional headquarters with little output.
Strategy
7.2.12 Given the extensive structural impediments, the GoB recognizes that agriculture strategy will
require a greater role of the public sector than is the case in other parts of the country. Water
resource management and sustainable and equitable farming systems will remain central to the new
thinking and these must now be handled at the river basin level under participatory approach.
Effective water usage through Sailaba farming and use of high efficiency water systems; change
over to high value products at river basin level would be central to sustainable water use. For
effective extension services; availability of quality seeds and other inputs, competitive markets and
the entire supply chain must be brought closer to the farmers through innovative strategies. The
situation therefore requires newer thinking on the way forward.
i. Encouraging Sailaba farming under spate irrigation by development and management of

water resources at basin level and integrating Sailaba with the Storages/ Dams command
area.
ii. Introduce high value products through use of high efficiency irrigation systems for raising
productivity and water conservation.
iii. Bring additional area under cultivation through Sailaba farming for enabling additional
households to get livelihoods from agriculture. There is potential to cultivate 1 million
hectares of additional land under farming and benefiting about 200,000 households. This
would require a mapping of potential regions and target beneficiary populations for Sailaba
farming and ensuring availability of inputs and services through private sector.
iv. Integrate the command area of the existing small dams (Mirani & Sabakzai) as well as of the
dams under construction with the Sailaba farming under traditional spate irrigation. These
command areas must be encouraged to use high efficiency irrigation systems and diversify
19
Balochistan; Development; Issues & Prospects; Part II (2012) World Bank

towards high value products for maximizing the returns by intensifying the yield and
improving water productivity.
v. Rehabilitation and modernization of Karezes command area. This will facilitate water
recharge and introduction of high efficiency irrigation systems and high value horticulture
will maximize productivity and returns. This can further be integrated with watershed
management including trees, grasses and bushes to bring in greater community stakes.
vi. Computerize and document the Land Titles in the command area of the existing and new
storages to bring in better transparency in the land ownership component in the province
vii. Improving productivity and sustainability of canal command areas – Pat-feeder and Khirther
canals and minor perennial irrigation schemes by adjusting crop patterns with water
availability in both the major canals. The high water consuming crops like rice require a
diversification towards oil seeds, vegetables, fodder, pulses etc. for water conservation and
higher product values. Simultaneously the waterlogged and saline land to be reclaimed in the
command areas.
viii. Partner with private sector to evolve a mechanism for “ICT Based Extension Services”. There
are many companies who can evolve a design tailored for Balochistan’s rural and semi urban
settings. It may require certain investments in farmer education on the system and providing
them mobile phones. Also initially tehsil level tele-centers can be created by training the local
staff for acting as the hub of information, knowledge and connectivity. Agriculture extension;
market prices; input availability together with other sector information such as livestock;
fisheries; immunization etc. can all be provided.
ix. Given the small presence of private sector seed, fertilizer and pesticides companies; the tehsil
tele-centers centers can act as the information hubs and eventually become sale points for the
agriculture and other inputs on cost sharing basis.
x. Partner with private sector to establish modern agriculture markets at strategic locations.
Initially one Agri Marketing Company can be established with linked smaller markets at
district level and expanded at tehsil level. These can be gradually equipped with cold
storages, processing and value addition facilities and also having the information of
marketing trend of all national markets and such information is disseminated up to grass root
level under ICT Extension model.
xi. Ensure availability of agriculture credit through a special arrangement with the SBP for all
components of Agriculture including livestock, fisheries, markets, processing and packaging.
This can be initially undertaken by evolving a Credit Guarantee scheme to create greater
confidence of the financial sector.
xii. Focus on women through dedicated interventions under on- going and new community
empowerment programs. Evolve a program for grant of subsidized inputs including certified
seed and fertilizer for high value products to women farmers.
xiii. Formulate Agriculture Policy for Balochistan in line with the IWRM Policy 2006 to cover all
major farming systems. Review of existing institutions to adjust these with changing
dynamics of agriculture productivity. Initiate sub-sector specific institutional reviews to
convert existing institutions into better performance organizations geared to work with
private sector and the communities in a participatory mode. The dynamics of reaching out to

people are changing and as such service organizations can no longer work under bureaucratic
and detached mode.
xiv. Linkages and joint planning and programming with irrigation and power, forestry and
livestock departments. There is a need to have integration of various sub-sectors of land use
to maximize the returns – crops, forestry, fisheries, livestock, fruits and vegetables.
xv. Making research more effective. The research output in Balochistan needs to be improved as
currently there is little to show on any major component. It may be seed varieties; horticulture
plants and their varieties; disease control; yield improvements etc. the performance remains
low. There is urgent need to undertake organizational review and improve budgets,
manpower and make research performance based.
Table 7B: Agriculture (Rs. In million)

Sr. Strategy FY 1, FY3, FY5, Total Proposed FA
No. FY2 FY4 FY6, FY7 Portion
Promote Sialaba farming for
1 existing as well new farms in all
major Basins 1,000 1,500 3,500 6,000 -
On Farm Management (All
2
Major River Basins) 500 1,500 2,000 4,000 3,000
Develop Command Area of
3 existing and new Dams for HV
products through HEIS 1,000 1,500 2,000 4,500 -
Introduction of HEIS and HV
4
products Groundwater zones 800 1,200 1,000 3,000 -
Improving Water Productivity
5 of Pat Feeder and Khirther
Canals & Land Reclamation 100 1,500 2,000 3,600 -
Establish Agri Marketing
6 Company & linked markets
(PPP) 500 600 700 1,800 -
Strengthening Agriculture
7 Department – Policy &
Regulation, 60 100 150 310 233
Establishment of Call Centre
8 for ICT Based Extension
services 500 600 900 2,000 1,500
9
Schemes 247 247
Total 4,707 8,500 12,250 25,457 4,733
7.3 Livestock & Rangelands

7.3.1 Livestock is an important sub-sector of agriculture and the national reliance on livestock is evident
from its contribution to both the macro and micro economies. Livestock contribution accounts for
approximately 55.10% of agricultural value added and 11.5% in total GDP during 2010-11. At the
micro level, nearly 35 million people living in rural areas rely on livestock and earn approximately
30-40% of their income from this resource which additionally provides food security and works as
safety net for them.

7.3.2 Balochistan is endowed with a rich livestock resource. The percentage share of cattle, buffalo,
goats, sheep, camels and pack animals of Balochistan in national livestock population was 7.6%,
1.2%, 21.9%, 48.3%, 41.2% and 11.3%, respectively20. A time series data from 1986 to 2006 for
the contribution of livestock species of Balochistan in the national livestock species pool is given in
Table 7.6. It reflects that the share of cattle in the national livestock population has increased by
1% in this time period; buffalos have increased by 0.4% in 2006 compared to 1996; goats have
reduced by 0.8% from 1996; sheep have increased by about 2% and camels constitute almost same
share in this period.
Fig: 7.1: Livestock Population in Balochistan (in million)

14
12.8
12 11.11
11.78 Cattle
10.84
10
9.37 Buffalo
8 7.29
Goats
6 Sheep
4 Camel
2.25
2 1.15 1.34
0.34 0.33 0.32 0.38
0.06 0.16
0
1986 1996 2006
Source: Livestock Census 1986, 1996, 2006
7.3.3 It is evident that the livestock sector in the province is dominated by small ruminants and these
together constitute more than 30% of country’s small ruminants’ population (Fig 7.1 & Table 7.6).
There are basically three categories of ownership and production systems for these small ruminants
i.e. nomadic, transhumant and sedentary. Nomadic and transhumant are migratory systems and
together these constitute 80% of the small ruminants’ population in Balochistan. The dairy
production system has been traditional up till now where animal population is scattered and these
are low producing due to traditional rearing system. Gradually the trend of artificial insemination
and improving feedlot has begun in the canal command area where dairy is slowly being handled
commercially. This trend however is restricted to urban areas.
Table 7.6: Contribution of Balochistan in National Livestock Pool

1986 1996 2006
Species Pakistan Balochistan % Pakistan Balochistan % Pakistan Balochistan %
Cattle 17.54 1.15 6.6 20.4 1.34 6.6 29.56 2.25 7.6
Buffalo 15.7 0.06 0.4 20.3 0.16 0.8 27.33 0.32 1.2
Goats 29.94 7.29 24.3 41.2 9.37 22.7 53.79 11.78 21.9
Sheep 23.28 11.11 47.7 23.5 10.84 46.1 26.49 12.80 48.3
Camel 1.0 0.34 34.0 0.8 0.33 41.3 0.92 0.38 41.2
Pack Animals 3.5 0.4 11.4 4 0.42 10.5 4.77 0.54 11.3
Source: Livestock Census of Pakistan 1986, 1996, 2006.
20
Livestock Census of Pakistan (2006)

7.3.4 Livestock sector constitutes roughly 33% of the provincial agricultural GPP, this has declined on
account of the drought, however, rearing livestock is one of the major source of livelihood of over
75% of the population in the province. It enables the poor and the landless farmers to earn income
using communal rangelands for rearing the animals and this provides them with food security as
well as works as a social safety net against crop failures and other adversities. It is a readily
marketable and hence can provide cash to meet farmer needs and social obligations. In some cases
it also provides the sole source of farm power and transport.
Priority Areas
7.3.5 GoB recognizes that the livestock together with agriculture are the lifeline of a large majority of
the population in the province and despite intermittent droughts this sector has remained quite
resilient. This sector has received little quality support from the public sector in the past except on
the side of animal health, however given the tremendous potential of this sector for growth and
improving livelihoods, the Government plans to accord priority to it in the way forward.
7.3.6 One of the major constraints in the growth of livestock is the deficiency on account of nutrition.
The sector’s performance up till now has been solely on account of nature, as the natural
rangelands have supported the feeding requirements of the livestock especially the ruminants till
now. The rangelands over the years have depleted and the feed availability is now increasingly
deficient in the nutrients required by the animals. The low nutritional value is believed to be
responsible for high mortality rates and proneness for disease and low productivity.
7.3.7 Associated with this issue is the rangeland development, which is the major source of grazing and
survival of the livestock in the province. Over 93% of the total area in the province (34.72 million
ha) is covered by rangelands and of the 21 million ha is considered medium to good grazing land.
These rangelands provide the bulk of feed requirements of the small ruminants. The overall
productivity of these rangelands has been declining and the prolonged droughts have also
increased the degradation. The biomass provided by the rangelands is now much less than the
requirements of the grazing livestock and also there are increasing stock water constraints
requiring attention. This requires a re -vegetation and restoration intervention with the assistance
of technical experts including international donors having specialization in natural resource
management through a very active participation of the communities.
7.3.8 The extension services which could provide technical advice on a range of livestock management
from rearing, feeding, heath, crossbreeding etc. are more or less non -existent. There are
veterinary units and staff across the province but there is very little information on their outreach
and quality of services. Further most of the livestock owners are either landless or have small
herd and little access to any institutional credit including micro credit on account of multiple
factors including lack of collateral, documentation hassle and most significantly weak presence of
credit institutions in the province. The farmers generally depend on the local traders for credit
which despite being expensive is the only resource available to them.
7.3.9 GoB plans to address the constraint of competitive livestock markets. Presently the livestock
markets are weak, few and have barely any facilities or services. Also there is absence of modern
meat markets and very little value addition is happening in this sector. Non availability of strong
markets impedes supply chain, without which there are little chances of better productivity and
incomes from the sector. To make a beginning, the GoB would evolve an organizational
structure; such as a section 42 company under the company’s Act with the participation of private
sector. This institution can then create a set of market structure with a main market at the centre

and its subsidiary units in the major livestock zones. This company can begin with livestock
transactions and gradually set up a Meat Processing and export unit at a suitable location such as
Gwadar as well as Quetta to begin direct exports. Similarly for extension services; another
technically and commercially viable organization would be created in collaboration with the
private sector for proving quality services including livestock management, health, fodder,
genetic strengthening, insemination etc. for improving the productivity and farmer incomes. This
would gradually be organized on commercial lines.
7.3.10 For the dairy, a dedicated intervention would be undertaken to create community based milk
collection centres linked to private sector processing. This can be Women Focused intervention
given their preponderant involvement in animal hearing at homes. This component too will
require availability of proper advice and support relating to animal health and productivity
enhancement and can be undertaken with support of non- governmental organizations.
Strategy
7.3.11 While there is need for numerous interventions in the sector which can range from institutional
strengthening, research, improvements in extension services; programs for breed improvements,
production of fodders and forages, health management, rangeland development; credit facilities,
insurance and marketing etc. Government would prioritize interventions having universal
application for bigger impact. GoB is confronted with two mega challenges: a) weak availability
of inputs, services and logistics; b) weak livestock markets and lack of value addition for high
end users. In order to address this major supply chain deficiency, GoB will enter into a
partnership with private sector to set up institutional mechanisms which can deliver. These
mechanisms must be pillared on commercial viability and GoB can subsidize costs to increase
their viability.
i. GoB will create a Balochistan Livestock Services Company to provide Livestock Extension
Services relating to animal feed; farm management; animal health, breeding and other
services. A large part of these services could be through an ICT based call service which
provides information to the farmers through mobile phones and gradually evolves a quasi -
commercial model of generating messages on farmers data-base on range of information such
as: a) Livestock management; b) warning systems about contagious diseases; c) availability of
quality medicine; insemination services; feeding components etc. Through this service
company, critical linkages can be developed with other service providers and input producers
such as the veterinary services in the private sector; feed mills; fodder producers;
transportation and many other inputs required by the sector.
ii. GoB will set up a Balochistan Livestock Marketing Company for establishing a central
Livestock Market and Meat Processing Unit at a central location in Balochistan. This is to be a
lean organization with pivot headquarters and processing at initially Quetta and Gwadar and
with sub units at tehsil level. This will primarily procure the animals through tehsil collection
units for processing and value addition. This company can have two specialized units for milk
and meat separately. It can horizontally be connected with other private sector companies
involved in milk and meat processing. This company will be producing Halal beef and mutton
for export purposes. The market pull is expected to gradually correct the supply chain gaps:
a. Develop Livestock Smallholders Groups (like cooperatives for enabling resource and
knowledge pooling)
b. Development of milk production, collection and marketing through a Women focused
program.

iii. Provide dedicated attention to Meat Fattening Farms under public private partnership basis
and promote following:
a. Establishment of commercial fattening farms/feedlot units for sheep, goat and beef cattle
with their own feed mills and slaughter house facilities.
b. Promotion of “ Balochistan Nari Master ’ developed by the department through
crossbreeding of Australian Drought Master and Indigenous “Bagnari”. This to be
propagated on scientific lines (Embryo transfer technology) and connected to the Meat
Company.
c. Develop Ostrich and Camel Farming in collaboration with farmers in the potential zones
of the province for meat export through the Meat Company.
iv. Undertake Rangeland Development in collaboration with the Forest department and
international partners for re -vegetation and restoration of the rangelands and stock water for
sustainable nourishment of livestock. Introduce fresh drought resistant and fast growing
pasture/fodder species, trees. This will eventually facilitate drought mitigation.
v. Extend Credit Guarantee Scheme for the livestock farmers through Micro Finance and other
Banks. Askari bank, Bank of Punjab and NBP are doing Livestock insurance for their loans
extended to farmers for purchase of cattle. Such initiatives will be beneficial for lenders and
borrowers and must be started in Balochistan.
vi. Strengthen the Livestock Department to be able to evolve a policy framework; create
regulatory mechanism. It needs to undertake institutional strengthening measures for
upgrading its capacity to procure services, partnerships and impact assessments. Develop
linkage with universities for research on livestock production particularly breeding, nutrition
and management.
vii. Establish Livestock city which is under planning with LIEDA in Uthal. Other than
convergence of producers, processors and buyers, this enclave can become a central market
for the livestock by products such as wool, skins, which can then help in creation of local
cottage industry.
viii. Develop Integrated Livestock and Fisheries Farms in collaboration with private sector
Table 7C: Livestock & Rangeland (Rs. In million)

Sr. FY1, FY3, FY5, FY6, Total Proposed
No. Strategy FY2 FY4 FY7 FA Portion
Set- up a Balochistan Livestock Service
1 500 700 900 2,100 1,575
Company (PPP)
Set -up a Balochistan Meat Company
2 1,000 1,500 1,500 4,000 -
(PPP)
Maximization of value added meat
3 500 1,000 1,500 3,000 -
production (PPP)
4 Community Milk Collection & Marketing 500 1,000 1,500 3,000 -
5 Institutional Development 60 100 150 310 -
Rangeland Development& Drought
6 500 500 2,000 3,000 2,250
Mitigation

Sr. FY1, FY3, FY5, FY6, Total Proposed
No. Strategy FY2 FY4 FY7 FA Portion
Livestock City Development
7 500 500 1,000 2,000 -
(LIEDA)
Development of Integrated
8 80 310 110 500 375
Livestock farm Fisheries
9 Throw forward of Existing Schemes 93 - - 93 -
Total 3,733 5,610 8,660 18,003 4,200
7.4 Fisheries
7.4.1 GoB recognizes that the fisheries is

not only an important natural resource
for food security, growth & economic
development but also it is a critical
capital asset which can help reduce
poverty of coastal communities both
through generating incomes for them
and providing food security. The
international experience however
shows that this sector’s performance
ultimately hinges on better policy
frameworks and efficient
management systems for sustainable
benefits for the fishermen and the fisheries industry and trade as a whole. Balochistan with its huge
expanse of over 750 km of coastline, having about eight large landing sites and 30 smaller sites, is
endowed with enormous opportunities in the marine fisheries which if exploited adequately can
facilitate great benefits for the fishermen communities other than creating forward linked industry
and associated jobs. The bigger landing sites on the coast are at Jiwani, Pishukan, Gwadar,
Surbandar, Pasni, Ormara, Damb and Gaddani.
7.4.2 Most of the fish produced in Balochistan comes from the marine resources with only a minor catch
from fresh water from the command areas in the east and now possibilities of fresh water fish from
different small dams in the province. As per latest data, the overall marine catch has varied from
125,000 tons to 143,000 tons in last ten years. This is approximately one third of the country’s total
marine catch.21 The catch from Balochistan is much lower than Sindh despite its longer coastline
primarily on account of its much narrower continental shelf (15 to 50 km). Over 70% of
employment in the coastal areas is from this sector, with an estimated 52,000 fishermen associated
with fishing in the provinces.22 The catch is estimated to be worth Rs. 12 billion (US$1.2 billion).
7.4.3 Currently, one of the major interventions in the fisheries sector has been planned with the support
of the International Fund for Agriculture Development (IFAD). GoB and IFAD have lately signed a
US$35.5 million Gwadar- Lasbela Livelihoods Support Project for five years. This is a
comprehensive poverty reduction program which aims to strengthen communities and help them in
21
Vision of Fisheries Sector Balochistan 2013-2020; fisheries Department; GoB
22
Balochistan; Development Issues & Prospects; Part II-Fisheries (2012)

development of the fisheries sector through multiple interventions including community
organization; creation of Community Investment Fund and development of small community
infrastructure for facilitating better incomes for the communities in the target population of the two
districts.
Priority Areas
7.4.4 Most of the issues identified by the provincial Fisheries Department and different sector analysis
reports primarily revolve around the institutional and infrastructure constraints. The overall
fisheries infrastructure is considerably weak across the entire coast especially the fish landing,
handling and the processing and the communication network. Both the major fish harbors at
Gwadar and Pasni have limited infrastructure and services and the Pasni harbor eventually became
non- operational due to silting. The intervention relating to de-silting is under implementation
through a project supported by the Government of Japan. In addition there is on-going work on two
harbors in Gwadar with the support of federal government.
7.4.5 On the infrastructure side, there are important projects under implementation such as establishment
of harbours/Jetties, a Fish Processing Unit, Fishermen’s colonies, etc. Most of these projects are
critical and need to be completed on fast track basis. On the provincial side, these schemes require
Rs. 1,247 million to complete; there are however two harbors co -funded through Federal PSDP and
the Rehabilitation of Pasni Harbor is linked to disbursement of Japanese grant. Fisheries department
to be tasked to prepare a report of these projects (being implemented by different authorities such
as BDA; BCDA; GDA; Pasni Fish Harbor Authority) and to develop an Action Plan for expediting
implementation together with operational plans for following:
a. Establishment of Fishermen’s Training Centre at Gwadar

b. Construction of Fish Landing Jetty & Allied Harbour Facilities at East Bay, Pishukan
being funded through Federal PSDP and co-financed by GoB.
c. Construction of Fish Landing Jetty & Allied Harbour Facilities at West Bay Surbandar
being funded through Federal PSDP and co-financed by GoB.
d. Construction of Jetty and Harbour at Damb through provincial funding
e. Construction of Jetty and Harbour at Jiwani through provincial funding
f. Establishment of Fish Processing Plant at Pasni
7.4.6 Due to limited fish processing facilities; a large portion of the fish catch is taken to Karachi for
processing both for consumption in the country’s market and for export. In addition a significant
proportion of the catch estimated at about 30% is wasted due to non- availability of adequate
processing facilities. There is very little direct export from Balochistan to international markets
except a little quantity which probably goes to Iran.
7.4.7 Other major constraint is related to the quality of the fishing boats and the fishing gear. While there
is an apparent shift towards motorized boats as of the presently available 7,326 marine fishing boats
of various size (20-60 feet); over 70% (5,144) are motorized and 1,831 are mechanized, however
none of these have the modern shipping and fishing equipment and gears such as crates; ice boxes
etc. Most of the fishing vessels are gill netters as trawlers are banned in Balochistan. Many
fishermen do not own boats and hire them from the boat owners on profit sharing arrangements.
The largest boats that are manufactured have a keel length of 35 meters. A 15 meter keel length
boat costs Rs. 2.5 to 3 million to manufacture and has an average life of 20 years. Boat building
industry is therefore one of the potential industry in the area given the demand across the coast.

7.4.8 As per the Fisheries Department’s estimates the overall sustainable marine fish yield in the
province is around 300,000 metric tons as against a total fish stock/bio mass of 600,000 metric tons
available. However the data of actual fish catch available with the department reflects that the catch
has never exceeded 143,000 tons whereas the number of boats have gone up.23 This is indicative of
the fact that while greater effort is going into fishing the catch somewhat remains the same,
confirming the general belief that there is an overfishing issue. This is expected to become clearer
after the survey being conducted by FAO together with Federal Marine Fisheries Department
(MFD) and the Norwegian Agency for Development Cooperation NORAD becomes published. The
FAO however believes that there is an issue of overfishing requiring an adequate institutional
response for better management. It has also been reported that there are considerable possibilities
of oceanic vessels with gill nets indulging in Illegal; Unregistered and Unreported (IUU) fishing of
various kinds, which too requires a better surveillance and reporting system under the existing
regulatory mechanisms.24
7.4.9 On the aquaculture side, there have not been any breakthroughs despite some attempts made by the
Federal Fisheries Board earlier to set up a shrimp hatchery at Jiwani, which did not prove
successful. Despite a vast coastline and comparatively unpolluted waters, coastal aquaculture has
not developed in Balochistan. In order to attract private sector interest in aquaculture, GoB needs to
undertake some pioneering work to remove such bottlenecks as shortage of skilled manpower; non-
availability of credit, and most importantly uncertainty about land tenure.
7.4.10 Inland fisheries constitutes a small portion of Balochistan’s fisheries, around 5.7% of total fish
product in Balochistan and almost all of this comes from open water bodies such as ponds and
dams. The prevalent system for these water bodies is that fishing rights are auctioned for short term
contracts and it is believed that this system is neither equitable nor does this encourage efficient
fishing. Per hectare production of fish is generally low requiring better skills for managing fresh
water fishing.
7.4.11 The fisheries sector together with the livestock sector has remained neglected as far as institutional
credit is concerned. Given the state of poverty and issues of collaterals even in the micro finance
sector, it is unlikely that the situation would change in the short term. Under IFAD supported
“Livelihoods Support Program”, there is a Community Investment Fund (CIF), which is to be
managed by the village organization (VOs) who would act as community banks and provide
subsidized credits to VO borrowers. GoB will expand this type of credit to greater number of
households through the RSPs and other Community organizations through a dedicated program.
Strategy
7.4.12 Government is aware that Balochistan’s coastal region’s prosperity is linked to the economic
activities in and around the coast and fisheries alone can usher higher growth, provided it is
managed better. The two major deficiencies that require attention are the overall institutional and
management weaknesses and the infrastructure gaps that need to be taken-up on priority basis.
i. GoB will undertake institutional strengthening of the Fisheries Department for enabling it to
modify the policy and manage the fisheries more scientifically. As a part of this, the
department would plan a capacity development program at multiple levels including policy
23
Fisheries Department, GoB
24
Balochistan; Development Issues & Prospects; Part II-Fisheries (2012)

frameworks, policy management, regulation and oversight. Also there is need to train
dedicated staff for specialized tasks as managing harbour, fish handling and processing,
surveillance, health & hygiene safeguards.
ii. Encourage participation of women in fisheries sector by formalizing their role in such tasks
as fish processing, packaging, etc. In order to make the fisheries management results based, it
is desirable to support creation of ‘fishermen and women’s cooperatives’ for strengthening
their participation in the decision making and this will give them resources for undertaking
commercially viable ventures.
iii. Expedite completion of the Fishermen’s Training Centre at Surbandar (estimated cost Rs.361
million) and operate this under an Autonomous Board for evolving a well performing
organization. This may be managed with technical support of the Lasbela University’s
Fisheries Department. Additionally, the department would create formal institutional
linkages with the University of Lasbela for research, extension and capacity development of
the fishermen.
iv. Expedite the Infrastructure development through the on-going development schemes both
through GoB funding as well as through Federal PSDP. On the provincial side, these
schemes require an allocation of Rs. 1,247 million to complete
v. Establish a Balochistan Fish Harbor Authority under a private sector led Board and a
qualified CEO from private sector. This will enable the GoB to assign the operations of the
four harbors/jetties under construction to a professional organization having technical
capacities to handle these on commercial basis.
vi. Undertake a physical survey of the major landing stations to examine the gaps in physical
infrastructure, especially the connecting roads from landing sites to the main highway and
major villages and the gaps on account of water sanitation, etc. for evolving a holistic plan
for development of the major infrastructure gaps.
vii. Establish a Boat Building Yard at Gaddani to be operated as commercially viable enterprise
with private sector led Board and management. Undertake a program for modification/ up
gradation of Boats; provision of insulated ice boxes, plastic crates, on board flake ice plant
and life jackets for the fishermen through a transparent criteria.
viii. Undertake projects for aquaculture through technical assistance of International

Organizations already involved in the subject. A beginning has been made through
Norwegian Embassy which has supported plantation of mangroves in certain selected blocks
on the coastline. This will facilitate growth of shrimp, crab and fish breeding in this region. A
similar expanded intervention may be evolved through GoB funding, to be implemented
through the IUCN in collaboration with the Fisheries and the Forest Department.
ix. Evolve a Credit Guarantee Scheme in collaboration with State Bank of Pakistan for
facilitating greater credit disbursement in Balochistan. For the fisheries sector, this could be
disbursed through scheduled banks and also Micro Finance Banks/Institutions
x. Evolve planning for fish exports direct from the Gwadar to the Gulf region (fresh fish
by air) and to the rest of the world (frozen by sea). This will hinge on developing an
efficient and commercially viable harbour management company for managing
different harbours efficiently.

Table 7D: Fisheries Development (Rs. in million)
Sr. Strategy FY1, FY3, FY5, Fy6, Total Proposed FA
Capacity Development of
1 50 80 120 250 188
Fisheries Dept.
Modification/Up gradation of
2 800 1,200 2,000 4,000 -
Boats
Fish Harbor Authority
3 Operational Expenditure of 4 300 400 600 1,300 -
New Harbors
Endowment for Fisheries
4 200 300 200 700 -
Training Centre Gwadar
5 Development of Aquaculture 100 200 300 600 450
Operationalizing Fish Processing
6 400 600 1,000 2,000 -
Unit Pasni
Coastal Infrastructure Dev in
7 collaboration with Fishermen's 800 1,200 2,000 4,000 3,000
Organizations
Counterpart Funds for IFAD
8 166 - - 166 -
Supported Program
9 1,247 - - 1,247 -
Schemes
Total 4,063 3,980 6,220 14,263 3,638
7.5 Industry and Trade
7.5.1 Manufacturing sector accounted for about 9.2% of Balochistan’s GPP in the mid 2000’s – down
from 9.4% in 1991. In 2005, manufacturing was the fourth largest sector in the provincial economy
behind agriculture (29.3% of GPP), public administration (12.7%), and trade (17.2%). Large scale
manufacturing’s share of provincial manufacturing value added (MVA) was about 79% in 2005
up from 70.5% in 1991. The large scale manufacturing sector has grown significantly, more rapidly
in recent years than the small sector. Despite this the share of Balochistan ’ s large scale
manufacturing sector in national MVA has stagnated at about 2% during 2000 to 2009. The share of
the small scale manufacturing sector of Balochistan in national SSM is about 1%.25
25
Balochistan; Gross Provincial Product; (2012) World Bank

7.5.2 Wholesale and retail trade accounts for roughly
a quarter of Balochistan’s GPP. This share has Table 7.7: Balochistan MVA Growth
tended to decline marginally over the 2006 to (at constant factor cost)
2011 period. During this period, growth of trade Years Total MVA Growth
sector value added has fluctuated widely – with 2000/01 11.02
a high of 10.3% in 2008 and negative and 2001/02 23.75
stagnant growth in 2009 and 2011. Trade sector 2002/03 14.51
value added of Balochistan accounts for about 2003/04 21.13
8% of national trade sector value added. 2004/05 24.86
2005/06 19.16
7.5.3 Industry traditionally has been a neglected policy 2006/07 7.04
concern and public investment and support to 2007/08 6.28
manufacturing – large and small scale and 2008/09 -3.45
slaughtering – mining, construction and transport
2009/10 4.5
sub-sectors have been typically small. There are
2010/11 3.5
clusters of manufacturing industry in several
locations; Quetta, Jafferabad, Lasbela, etc. AV 2001-2006 19.07
However according to the 2006 Census of AV 2007-2011 4.37
Manufacturing Industry, the share of Balochistan Source World Bank (2012) Vol. II. Table 3
in the total number of manufacturing industry is
extremely small.
7.5.4 In Lasbela, about 201 manufacturing units are in operation in all the estates falling under the
jurisdiction of Lasbela Industrial Estate Development Authority (LIEDA). LIEDA is presently
operating 5 estates in Lasbela and of these the two most colonized are the Hub Industrial Estate and
Marble City Gaddani. About 36 listed companies of Karachi Stock Exchange are located in
Industrial Estate of Lasbela. The production of these industries not only fulfills the domestic
demand of these products but also partakes in exports and contributes to foreign exchange. The
number of workers employed in factories dropped from 14,789 in 1993-94 to 13,233 in 1996. The
2010 data for labor is 6,88026 . The drop in factory work force is probably on account of greater use
of modern technology.
Table 7.8: Industry in the Lasbela Industrial Estate Development Authority

Under
Estates Established In Operation Closed
Revival
Hub Industrial Estate 226 135 17 74
Winder Industrial Estate 18 8 1 9
Uthal Industrial Estate 5 1 4
Marble City Gaddani 55 55
SIZ Winder 4 2 1 1
Total 308 201 19 88
Source: Gob; LIEDA Brief
7.5.5 Balochistan’s ship-breaking yard at Gaddani is one of the world’s largest ship breaking operations.
Gaddani currently has an annual capacity of breaking over a hundred ships of all sizes including
super tankers and large cargo ships. The yard provides considerable amount of steel which is used
in other industry. There are 314 plots of which 132 are developed and presently there are 5,000
people employed in the ship breaking industry.
26
District Development Profile Lasbela; 2011 UNICEF, P & D Department Government of Balochistan

7.5.6 The newly developed Gwadar Industrial Estate (GIE) is situated a little outside the Gwadar city
along the Mekran Coastal Highway. It comprises of 2,000 industrial plots, of which 1,100 acres
have already been allotted. The infrastructure activities are in final stage of completion. The estate
required availability of fresh water which is expected to be made available after the recent approval
of water pipeline for Gwadar. GIE’s viability ultimately hinges on the success of Gwadar port. In
Quetta, there are a total of 117 industrial units with 29 different types of industry. There are more
than 2,500 persons employed in these units.27
7.5.7 The existing enterprises in Balochistan are

small and cater to the needs of a small, low Table 7.9: District- Wise Trade Sector Credit
income clientele. These trading enterprises are in Balochistan June 2012
usually family business often relying on Vol Rs. ‘000 %
formally unpaid labor and with weak links Gwadar 2,352 0.15
with enterprises along its supply chain. Trade Jafferabad 610,120 41.46
is the second largest recipient of bank credit Kech 19,912 1.35
(after manufacturing outstanding in June Khuzdar 9,992 0.68
2012). Moreover all trade sector credit is Killa Abdullah 2 0.00
concentrated in Quetta and Jafferabad which Lasbela 29 0.00
accounted for about 95% of outstanding Loralai 3,362 0.23
Balochistan’s trade sector bank credit in June Nasirabad 7,637 0.50
2012. Quetta still accounts for more than half Pishin 9,209 0.62
of private sector credit outstanding to Quetta 776,344 52.76
Balochistan’s trade sector. Lack of access to Sibi 7,221 0.49
finance is a crucial constraint on the growth of Other 24,532 1.66
the trade sector. Amongst other barriers, the Total Balochistan 1,470,712
non-availability of suitable collateral, credit Source: State Bank of Pakistan 2012
history and use of English language for bank documentation and transactions, are the major ones.
All these require adequate redress for improving the credit availability in the province.
7.5.8Strengthening linkages between trading and manufacturing enterprises is important as this can be a
source of flow of both finance and technology and lead to the growth of the enterprises. There are
very few examples of trading enterprises “graduating” from minor to medium sized levels in
Balochistan (starting as one man businesses and developing into a large retailer network) due to
weak inter-enterprise vertical and horizontal linkage and absence of a reliable market information
system which can allow enterprises to track change in market demand, production technologies etc.
Priority Areas
7.5.9Government recognizes that without availability of efficient infrastructure, the manufacturing

industries would be unable to take advantage of the natural resource endowments. The experience
of Hub Industrial Estate (HIE) shows clearly, that a conscious public investment in infrastructure
including water and electricity enabled the HIE to take off. The physical connectivity with Karachi
facilitated supply of the managerial and technical manpower together with technology. LIEDA is
already working on Phase II projects for expanding HIE as well as the Marble City. It has planned
water supply schemes for additional water as well as for a power project. GoB plans to take up the
request for sanctioning of gas for the power project as well as for the industry with the GoP as the
gas used in Balochistan is only 2% of the amount produced in the province. Similarly the
development of better connectivity in the province especially rail link connecting Gwadar to the
27
District Development Profile Quetta; 2011 UNICEF, P & D Department Government of Balochistan

eastern, western and northern region will provide boost to mineral processing as well as other
industry linked with local raw material
7.5.10 For wider growth impacts, industry having backward linkages with raw material within Balochistan
must be prioritized. Further focus should be on creating linkages with markets surrounding
Balochistan, in Sindh, Punjab and KPK, and also in gulf area (through facilitating port linkages and
cross border facilitation programs). In 2004 there was discussion for setting –up, Pak-Iran Common
Border Market for controlling illegal trade and promoting tax harmonization. Iran has been
operating common border markets with Turkey, Azerbaijan and Turkmenistan. Common border
market projects could be solicited with the Government of Oman in the Gwadar area.
7.5.11 Balochistan’s financial underdevelopment reflected in the absence of institutional finance at the
long end of the market (no bank lends long, there are almost no venture capital funds, lease
financing arrangements, new bond/ sukook or share market issues anywhere in Balochistan). In
Balochistan the outstanding credit extended to the manufacturing sector as a proportion of total
credit outstanding by banks averaged about 15% during 2006 – 2012 (Table 7.10). Weak financial
sector is underscored by the absence of the non- banking financial intermediaries (NBFC) sector.
The collapse of the DFIs especially that of IDBP and BEL has hit Balochistan’s manufacturing
sector harder than any other province. Balochistan’s manufacturing sector is also in need of BMR
(balancing, modernization and restructuring) investment today together with green field projects.
Table 7.10: Private Sector Credit Outstanding to Manufacturing

2008-2012 (Rs. in billion)
Year Private Sector Credit Total Private and Percentage
Outstanding to Personal Credit
Manufacturing Outstanding
2008 1.59 12.78 12.44
2009 1.69 12.80 13.20
2010 2.19 10.41 21.03
2011 1.44 10.45 13.77
2012 1.74 9.71 17.91
7.5.12 The cost of doing business in Balochistan is higher than almost anywhere in Pakistan. Quetta ranks
12th among 13 Pakistan cities on the basis of the overall index constructed by the World Bank. It is
particularly cumbersome, time consuming and expensive to enforce contracts, register property,
obtain construction permits and organize trade in the case of Quetta businesses (on the other hand
starting a new business and paying taxes is relatively easy in Quetta.) This indicates the need for a
major overhaul of the public administrative structure regulating business operations. Clearly there
are too many regulatory tiers of authority that can be eliminated or intuitionally subsumed within
the system for better business operations in the region.
7.5.13 Industrial strategy must also concentrate on promoting enterprise consolidation and horizontal and
vertical linkages. According to the latest census (2011) 90% of the manufacturing enterprises in
Balochistan employ less than 4 persons each. Many enterprises are effectively one man family
businesses (relying on unpaid labor). Only 13% of Balochistan’s enterprises are in the
manufacturing sector (as against 20% in the rest of Pakistan). This also reflects the lower level of
provincial economic integration. Manufacturing sector development is also limited by Balochistan’s
relatively low level labor participation rate (estimated at 27% in 2011). Moreover labor productivity
is lower in Balochistan than any other province, it is just 66% of the average labor productivity of

Sindh. This underlines the need for public support for rapid upgrade of both, on the job and off the
job employee trainings.
Strategy
7.5.14 GoB plans to promote industry which can allow Balochistan to exploit her natural resource
potential – fruits, fish, wool, leather, meat, minerals (especially coal and copper) and petroleum
refining. Also the focus is developing value chain in the products that are presently produced in raw
form and whose value addition takes place outside Balochistan. Public support (including
subsidizations of inputs and services) would thus focus on:
i. Facilitating investment partnerships (between public, private and foreign investors) to

overcome the constraints in the expansion of industrial growth. For this, GoB would undertake
joint ventures with private sector with its equity participation and encourage foreign investors
specially investors from the Balochistani expatriates.
ii. GoB will create special Equity Funds for supporting manufacturing sector projects that are
well integrated with the provincial resource base and can generate growth spread effects
within a specified region linked up with a growth pole outside Balochistan and can provide a
basis for continuous improvements in the skill level and productivity of the Balochistan labor.
Grant of mining exploration and production contracts to major multinationals must also
include agreements on processing a certain proportion of the extracted minerals in
Balochistan, preferably as near the mining site as practicable.
iii. Reviving long term investment for manufacturing through an agreement with SBP for
evolving project evaluation and monitoring capability in the Financial Institutions and an
associated expansion of long term manufacturing sector financing. Also floatation of bonds on
the KSE and the Gulf stock markets by the provincial government for financing mineral
processing and petroleum refining projects in Balochistan.
iv. Support investments in the infrastructure especially power; water, transportation and storages
through prioritization. LIEDA’s planned investments including those for expanding Industrial
estates be supported
v. Rehabilitate existing Industrial Estates and establish new Industrial Estates under SEZ Act.
vi. Strengthen organizational capability of the Industries & Commerce department in policy and
regulatory mechanisms. Revitalize the Balochistan Small Industries Corporation by converting
it into a Small Enterprise Development & Finance Institution in partnership with private sector
for providing project development and financing support to small enterprise; service industry
as well as trading units.
Table 7E: Industry & Trade (Rs. in million)

No. FY2 FY4 FY7 Portion
Improving Regulatory Framework
1 81 50 85 216 164
for Industrial Growth and Safety
Equity Funds for Investing into
2 400 1,000 1,500 2,900 -
Strategic Industry
Improving Infrastructure of
3 Existing Estates and New Estates 200 800 400 1,400 -
under SEZ

No. FY2 FY4 FY7 Portion
LIEDA Requirements for
4 Infrastructure and Gaddani Ship 400 400 200 1,000 -
Steel & Allied Industrial Park
5 374 - - 374 -
Schemes
Total 1,455 2,250 2,185 5,890 164
7.6 Mining and Natural Resources Sector
7.6.1 Balochistan is one of the richest

provinces in Pakistan, in terms of
minerals with large reserves of copper,
gold, iron ore, chromite, marble and
coal, amongst others. Unfortunately,
most of these deposits remain largely
un-exploited owing to various reasons,
including law & order situation. The
mining sector holds tremendous
promise for creating much needed
resources for the development of the
province as well as creation of jobs for
the local population, in not only the
mining sector, but also in the spin- off and downstream processing industry such as cement, marble
value addition, steel, etc. The only active metal mine of significant scale is the copper-gold mine at
Saindak in Chaghai district operated by - MCC Resources Development (Pvt.) Limited (MRDL). At
least two more known venues with significant potential for large-scale metal mining are Reko Diq
(Gold and Copper reserves) in Chaghai district and Duddar (Lead and Zinc) in Lasbela district.
Priority Areas
7.6.2 GoB is cognizant of the structural weaknesses which impede the exploitation of mineral resources,
such as lack of adequate infrastructure, security related challenges, difficult terrain, significant gaps
in knowledge and skills and underdeveloped regulatory framework governing the mining sector.
GoB intends to address these under this strategy, so as to unleash the great potential of the mining
sector and translate it into the prosperity of the people of the province.
7.6.3 The provincial government is responsible for regulation of all minerals except for Oil and Gas.
After 18th Amendment, there is now a shared ownership of even Oil and Gas resources between the
federal government and the relevant province. The existing regulatory framework is based on the
Balochistan Mineral Rules, 2002. This framework and underlying laws need to be updated to attract
private sector investment in the mining sector. The Balochistan Mineral Rules (BMR), 2002, were
introduced, following the provincial implementation of the National Mineral Policy, 1995. Along
with provisions with regards to mineral titles, BMR 2002 also covers the amount of royalty payable
on minerals, per metric ton. The rate of royalty set in 2002, is considered low, especially
considering the rupee devaluation, ever since, and proposed to be revised keeping in view the
current market as well as conditions prevailing in the province. A modern and progressive

regulatory framework is imperative to ensure effective and expeditious development of the true
potential of the mineral resources of the province.
Saindak Copper / Gold Project
7.6.4 The Saindak Copper-Gold Mine is located near Saindak town in Chaghai district. These deposits
were discovered back in 1970s in collaboration with a Chinese engineering firm. The Saindak
Copper-Gold Project was set up by Saindak Metals Limited (SML), a company fully owned by the
Government of Pakistan. Pakistan and China signed a formal contract worth $350 million for
development of Saindak Copper-Gold mine. The mine was leased for a 10 year period to MCC
Resources Development (Pvt.) Limited (MRDL). As per the lease agreement, 50% of revenues
from the mine go to MCC, 48% go to the GoP, while 2% go to the GoB. The lease between SML
and MRDL expired in October 2012, and has now been extended for another 5 year period, till
October, 2017. As per Aghaz-e-Haqooq-e-Balochistan (AHB) package, agreed between the GoP
and GoB, the ownership of the Saindak Project would get transferred to the GoB on expiry of the
initial 10 year lease contract, in October, 2012. This transfer, however, has not taken place as yet.
7.6.5 SML’s revenue for the year ended

June 30, 2012, amounted to Rs. 4.8
billion. Such revenues will accrue
to the GoB, once the transfer of the
project is affected in accordance
with AHB. These funds can be
strategically invested in the
mineral sector, especially for
development of Reko Diq copper
mines. GoB expects that in
accordance with the Federal
Government’s commitment in
terms of AHB, this project will
shortly be transferred to GoB.
7.6.6 The Saindak mine has total

estimated reserves of 412 million
tons, of which an estimated 1.69
million tons are mineable. Saindak has the capacity of producing roughly 15,800 tons of copper
blister, 1.47 tons of gold and 2.76 tons of silver, annually. At present, MMDD has limited
information about the progress of development of Saindak mines, including annual production,
projected recoverable reserves of copper and gold. Going forward, MMDD will develop a
framework for more effective information collection and monitoring to protect the interest of the
province.
Reko Diq
7.6.7 Reko Diq is a small town in Chaghi district, 70 km north-west of Nokundi, close to Pakistan's
border with Iran and Afghanistan. The area is located in Tethyan belt that stretches all the way from
Turkey and Iran into Pakistan. Reko Diq has an estimated 56-year life span and has one of the
largest reserves of copper in the world. The deposit at Reko Diq is large low grade copper
porphyry, with total mineral resources of 5.9 billion tons of ore with an average copper grade of
0.41% and gold grade of 0.22 g/ton. From this, the economically mineable portion of the deposit

has been calculated at 2.2 billion tons, with an annual production estimated at 200,000 tons of
copper and 250,000 ounces of gold, from 600,000 tons of concentrate.28
7.6.8 Reko Diq deposits are considered extremely valuable, promising substantial resources in terms of
revenues from royalty as well as huge return on investment on development of mining and related
projects by the provincial government, which will become available for development of the
province, once the mining commences on commercial scale. GoB intends to work proactively to
develop a plan for development of Reko Diq reserves in the best interest of the Province.
Coal
7.6.9 Coal mining in Balochistan started on

small scale before independence, in
Khost-Shahrig-Harnai area, and has been
increasing with time. Coalfields are
generally located in remote and
mountainous areas where infrastructure
is either minimal or absent. The
province has significant reserves of coal,
as shown in the table below. The coal
reserves here, have a high content of
sulphur and tar, which reduces its utility
for industry such as Steel, as once this
coal is burnt, it emits less coke, which is
required for hot metal manufacturing. Consequently, the present use of such coal mined in
Balochistan is largely confined to brick kilns and some blending with imported coal in the cement
industry. Establishment of a coal washing plant with upgrade is quality and enhances its use for
especially power generation.
7.6.10 The thickness of coal seams ranges from 0.3 Table 7.11: Coal Reported Reserves (in million
to 2.3 meters. Balochistan coal is classified as tons)
sub-bituminous to bituminous and the heating Location Reported Reserves
value ranges from 9,637 to 15,499 Btu/lb. It Mach Abegum 23
has low ash and high sulphur content, and can
Khost Sharigh Harnai 76
ideally be used for thermal power generation
and as industrial fuel (cheaper source as Sorange Degari Sinjidi 50
compared with imported furnace oil). Coal Duki 51
reserves in Khost, Sharig and Harnai, the Pir Ismail Ziarat 12
largest reported reserves in Balochistan, have Chamalang 56
low moisture content, ranging between 2%
Total 268
and 11%, whilst sulphur content varies
Source: MMDD Balochistan
between 3.5% and 9.5%.
28
Board of Investment, Government of Pakistan

Table 7.12: Production of Coal by Field (in Tons)
Field 2007-08 2008-09 2009-10 2010-11
Sor Range 117,681 115,802 101,715 101,989
Degari 43,175 41,632 36,419 22,305
Sharigh 184,989 140,370 169,793 193,671
Sinjidi 120,515 117,118 114,020 73,614
Mach 293,340 236,274 185,574 131,158
Harnai-Khost-Nasaka-Zardalu 93,931 103,358 102,702 112,024
Duki 564,944 469,524 226,325 211,941
Pir Ismail Ziarat 318,166 294,567 176,808 156,340
Abegum 11,697 17,623 6,623 28,839
Barkhan/Chamalang 520,185 521,041 383,034 310,178
Sub-Total 2,268,623 2,057,309 1,503,013 1,342,059
Source: Pakistan Energy Yearbook, 2011
Iron Ore
7.6.11 Recent geo-scientific studies have established existence of about 200 million tons of iron ore, at
Dilband, Mastung, ranging in iron content from 40% to 50%. The deposits have favorable
mineralogical composition and are located near existing infrastructure. However, Pakistan Steel
Mills uses only a small proportion of iron ore (only around 10%, which is mixed with the imported
iron ore) from Balochistan due to low level of FE content. Similarly, Tuwairqi Steel Mills, the
newly established DRI plant is also expected to mainly use the imported iron ore. At present,
certain quantities of iron ore are being exported, but reliable data of exports is not available.
Table 7.13: Iron Ore Reserves (in million tons)

7.6.12 Although procuring ore from
Balochistan would turn out to be Location District Reported Reserves
significantly cheaper than imported
Pachin Koh Chaghi 45
ore, due to lower FE / iron content,
the steel industry uses imported iron Chigendik Chaghi 5
ore. A de-sulphurisation plant is
Chilghazi Chaghi 35
required, which will reduce the
sulphur content from the ore mined Dilband Mastung 200
in Balochistan, and thus make the
Total 285
iron ore more suitable for steel
making. Also, post de-sulphurisation, Source: MMDD, Balochistan
the ore is expected to have a higher
FE content, expected to be around 62%, which will make it an attractive commodity with huge
export potential. Mining for iron ore is predominantly done via applying primitive mining
techniques with higher wastage and other inefficiencies.
7.6.13 Due to a weak monitoring mechanism, significant production data goes unaccounted for, thus
resulting in lost royalty. For example, revenue earned from the production of iron ore in FY 06 / 07
was Rs. 75,000, jumped to Rs. 961,000 in FY 07 / 08 and further increased to Rs. 11,800,000 in FY
09 / 10. In the absence of the availability of annual production data of iron ore, the GoB intends to
introduce a monitoring mechanism, whereby per annum production data, broken down by field /
location, is obtained and monitored by MMDD.

Marble
7.6.14 Marble is also another very important
mineral resource of the province. As per
MMDD, large reserves of good quality
marble are present in Chaghi, Zardkan,
Siah-Chang, Jhulli, Patkok, Maskichah,
Zeh, Chilgazi and Buttak. Onyx reserves
are present in Chaghi, Bolan, Lasbela
and Khuzdar. The marble from
Balochistan is of superior quality and is
used in the local construction industry.
With improved technology and better
marketing practices, total export of
marble and onyx is projected to increase
from US$7 million to US$ 40
million.29 Given the marble zone’s close
proximity to Karachi and Gwadar port,
the province has an edge over marble mines in Khyber Pakhtunkhwa.
7.6.15China is the largest importer of marble and granite in the raw form. These are processed in China
and exported to various countries at higher prices. Export revenue is expected to go up significantly
if emphasis is placed on value-added services, such as high quality cutting and polishing, in order to
enable Balochistan to export finished marble products.
Chromite
7.6.16 Chromite is the source of chromium used commercially, and as an alloying element. Balochistan is
endowed with huge reserves of chromite. The first discovery was made at Muslim Bagh and
Khanozai in district Killa Saifullah, in 1901. Reserves have also been found in Zhob, Chaghi,
Kharan, Khuzdar and Lasbela districts. The most important among these are the Muslim Bagh
deposits, Kabbar (Wadh), Pat Nadi and Sonaro deposits in Khuzdar district.
7.6.17 Chromite mining has not been undertaken systematically and is quite disorganized. It is mined by
both open pit and underground methods. In Muslim Bagh, Ras Koh Range and Wadh areas,
chromite is mostly mined by open pit method. Use of donkeys for hauling the ore from
underground is still widely practiced. The ore mined is transported by trucks to Karachi where it is
crushed and packed in bags for export. China is one of the largest importers of chromite from
Balochistan. The ore concentrate is used to make ferrochrome, which is in turn used for steel
making. Chrome is also used in the production of chromic acid by chemical industries and in the
creation of refractory bricks.
Lead / Zinc
7.6.18 An estimated 27 million tons of lead and zinc deposits

are present in Balochistan, in the Khuzdar and Lasbela
districts. Lead-zinc ore is present in Duddar, Shekran,
Malikhorn, Gunga, Surmai and Mithi areas, with the
single largest reserve of the mineral found in Duddar.
29
MMDD website

The Duddar Project is the first nonferrous metal mine adopting underground mining technology in
Pakistan. The mine has been leased to MCC Resources Development (Pvt.) Limited (MRDL), of
China, in December 2003. The GoP entered into a profit sharing agreement with MRDL and the
Pakistan Mineral Development Corporation, with an agreed profit sharing ratio of 75% and 25%,
respectively. The lease period provided within the agreement was ten years, apart from the
construction period of two years. The GoB has obtained 12.5% of the 25% share of PMDC profit in
the project through the Balochistan Development Authority. In 2011, the output of lead and zinc
ore reached 2,268 tons and 19,457 tons, respectively30.
7.6.19 Lead is used in storage batteries, cable covering, lead pipe manufacturing, pigments, ammunition,
bearing metals, and casting of a few alloys. On the other hand, zinc is used for the manufacture of
galvanized iron products, like G.I. sheets and water pipes, to protect the metal against rusting. It is
also used in casting alloys like brass, bronze, German silver, etc. Zinc oxide is also used in the
rubber industry.
Limestone
7.6.20 Limestone is a major sedimentary deposit, and

Balochistan has vast resources of the mineral,
extending from the coastal region near Karachi to
as far north as Chaghi and Zhob. Several hundred
meters thick layers of limestone occur in the
Chiltan Formation in Quetta. In particular, the
Harnai, Sor Range, and Spintangi areas have
large reserves. Limestone is primarily mined via
open pit method. It is the main raw material for
cement, and is also used in the manufacture of
bleaching powder, glass, soaps, paper, paints and lime. Often, limestone is painted on barks of trees
to counter pests and termite attacks. The mineral is also widely used to aerate soil and treat salinity.
Revenue Receipts
7.6.21 Revenue is generated via various sources, for example the collection of application fee, annual rent
and royalty by the Directorate General Mines and Mineral, Balochistan. The fees, annual rent and
royalties are charged according to Balochistan Mineral Rules 2002. A significant increase has been
observed in revenue receipts in the past four years:
Table 7.14: Revenue Receipts from Minerals (2008-09 to 2011-12) (Rs. in million)
Sr. Other
Year Saindak Chamalang Duddar Total
No Minerals
(Copper / Gold) (Coal) (Lead/ Zinc)
1 2008-09 199.36 26.58 --- 274.52 500.46
2 2009-10 238.25 23.72 8.34 354.05 624.36
3 2010-11 1,119.24 20.48 120 448.3 1,708.02
4 2011-12 2,484.67 65.38 119.55 555.5 3,225.10
Source: MMDD, Balochistan
30
MRDL Annual Report, 2011

7.6.22 However, despite the year on year increase in revenue, there is significant room for growth in
receipts, both, in terms of rationalization of rate of royalty charged on minerals as well potential
increase in production. At present, the rate of royalty in Balochistan is much lower than what is
charged in other provinces. For example, royalty on coal, per the Mines & Mineral Development
Department, Government of Sindh, is charged at a rate of 7.5% on the value, subject to a minimum
of Rs.75 per ton, as compared with Rs. 20 per ton, in Balochistan. As an incentive for investors to
invest and work in Balochistan, GoB intends to rationalize and enhance the rates of royalty on a
gradual basis.
Strategy
i. GoB will set-up a high level Mineral Development Board (MDB) under the chairmanship of Chief
Minister Balochistan, to act as the main decision taking body for providing leadership, strategic
direction and oversight for expeditious development of mining sector. The board will include
combination of elected representatives, bureaucrats and eminent persons from private sector.
Amongst other things, this will help in improving coordination between the government
departments, within the province as well as between the provincial and federal government, for
executing provincial mineral strategy. A ‘single-window’ facilitation center will also be set-up for
investor facilitation on a fast-track basis, within the MDB.
ii. GoB plans to establish an Oil & Gas Development Department (OGDD) to oversee provincial
O&G resources and expeditious development of the sector. Following the 18th Amendment, there is
now shared ownership of Oil & Gas (O&G) resources, between the federal and provincial
governments. The OGDD will be responsible for attracting private sector investment in the O&G
sector, providing assistance and guidance to permit holders for carrying out exploration and
extraction activities, and representing the province at federal and international level. The OGDD
will be strengthened by hiring O&G sector experts for regulatory and contract administration
matters, both from a legal and technical viewpoint.
iii. Undertake Mining Development Strategy for development of mineral sector, including a strategy
for expeditious development of large copper deposits at Reko Diq will be developed, with the
assistance of qualified international mining experts.
iv. Undertake additional studies in coordination with GSP to improve availability of geological data
required by investors and facilitate availability of updated, accurate and relevant data on various
mineral deposits in the province.
v. Evolve a dedicated capacity and institutional development program for the MMDD to enable them
in realizing huge potential of the province in the mining sector. This will entail recruitment of
following specialists:
a. A governance specialist, to develop the organization structure of the department on

modern lines.
b. Technical experts / Specialists who can advise on development of specific strategies for
development of major mineral deposits in the province, including copper, iron ore, coal,
zinc and marble.
c. Training of existing staff, after a proper assessment of their training needs.

d. 25 individuals from the local population to be sent on short-term training.
e. 10 individuals need to be trained and commissioned within the MMDD, working within
the policy making / regulatory realm.
f. 10 individuals need to be commissioned, responsible for procurement, covering the legal,

regulatory and technical aspects of contract administration.
vi. MMDD will develop special security plan and make special security arrangements for the areas
where major mineral deposits reside, in consultation with investors and security experts to provide
reasonable comfort to the existing and potential investors.
vii. Develop a skill development strategy as part of the mineral development strategy, for development
of skilled workforce for mineral sector from the local population, such as geologists, mining
engineers and geoscientists, amongst others. This will help in making available necessary resources
for employment in major mines and ancillary processing industry. This in turn will enhance
efficiency; reduce wastages in the mining process and increase recovery of mineral resources.
viii. Prepare infrastructure development plans as part of Mineral Sector Strategy to ensure availability of
adequate roads, bridges, telecommunication network, power supply and water in the mineral
enclaves including Reko Diq.
ix. Mining Sector Strategy will also entail a plan to enhance mining technology as well as value
addition in different mining products through establishment of related processing industry, so that
minerals are processed into finished or semi-finished products. At present, most of the minerals are
extracted in raw form in the province, with very little value addition in the provincial economy.
x. MMDD to develop mechanisms for collection of data on various mines and mineral activities on a
periodic basis, including data on production so as to ensure completeness of royalty collection and
effective monitoring of mining activity in the province.
xi. MMDD will consider outsourcing the monitoring of mineral production and royalty collection,
through competitive bidding in order to bring efficiency in these activities.
xii. Rates of royalty will be rationalized, keeping in view the current market conditions in Balochistan.
However, keeping in view the challenges of working in Balochistan, the overall rates will be kept
at a discount compared to the rates in other provinces to enable higher level of investment.
xiii. MMDD would hire international mineral regulatory experts for updating the BMR 2002, to reflect
developments in the mining sector since 2002, including legal, fiscal and environmental
developments which can facilitate expeditious development of this sector via greater private sector
investment in an efficient and transparent manner.
xiv. GoB will approach the federal government at highest level, for expeditious transfer of Saindak
Metals Limited, from the GoP to the GoB as part of federal government’s commitment under
Aghaz-e-Huqooq-e-Balochistan.
xv. MMDD will engage suitable consultants for developing appropriate policies on health, safety &
environment for various mining operations. Current mining practices pose significant risks and
hazard to health of workers, as mining operations of most mines are reportedly not in compliance
with acceptable mining practices.

xvi. Dedicated economic zones to be established, under the recently evolved Special Economic Zones
enactment at federal level to develop upstream industry. These may be set up in Muslimbagh,
Quetta, Gaddani, Mastung, Hub, Chaghi, Gwadar and Dilband, where significant development
activity in mining exists.
xvii. Engage international consultants for development of strategy for exploitation of Reko Diq reserves.
GoB has allocated Rs.8 billion for investment in Reko Diq. Bankable feasibility will be undertaken
for undertaking development of mines as well as refining facilities.
xviii. Introduce modern mining techniques vogue internationally such as wire cutters for efficient mining
of marble. The current system of blasting results in wastage of around 70% of the stone. In
addition, introduce imported monolama and Diabreton gang-saw machines for higher cutting
speeds with greater block loading capacity. Exemption on import duty of such machines can be
offered, to promote use of modern industrial equipment.
xix. Following projects will be undertaken in partnership with private sector with GoB holding
minority stake (20% to 40%); subsequent to bankable feasibilities:
a. A Ferro chrome Plant at Muslim Bagh. (Ferrochrome plant, with a capacity to produce 50,000
tons per annum, will require an estimated investment of Rs 1.6 billion).
b. De-sulphurisation Plant to be set-up in Dilband, to reduce the sulfur content and thus resulting
in higher FE content, in order to make it useable for steel making. (Estimated investment is
Rs.160 million).
c. A Coal Washing Plant at Shahrig followed by at least 4 other sites. (Estimated Investment for
a plant with a capacity to purify 2,000 tons of coal per day will require Rs.28 million).
d. A Mini Steel Mill at Mastung to utilize the Chaghi and Dilband iron ore reserves. Estimated
investment for a steel mill with a production capacity of 0.5 million tons per annum will
roughly cost an estimated USD 52 million.
Table 7F: Minerals & Natural Resource Development (Rs. in million)

Sr, Strategy FY1, FY3, FY5, Total Proposed
No FY2 FY4 FY6, FY7 FA Portion
1 Establish an Oil & Gas
Development Department 158 139 117 414 311
2 Mining Development Strategy 60 - - 60 45
3 Institutional development for
MMD 150 150 100 400 300
4 Skill Development for local
Population 300 400 500 1,200 900
5 Hiring Regulatory and other
Environment Experts 100 100 100 300 225
6 Mines Infrastructure
Development Fund 3,000 6,000 11,000 20,000 -
7 Subsidy on modern mining
techniques & machinery 200 200 200 600 -
8 Reko Diq Development 1,000 1,000 3,000 5,000 3,750
9 Equity for Ferrochrome Plant 1,000 1,000 2,000 4,000 -

Sr, Strategy FY1, FY3, FY5, Total Proposed
No FY2 FY4 FY6, FY7 FA Portion
10 Equity for De-sulphurisation
Plant 200 200 - 400 -
11 Equity for 5 Coal washing
Plants 350 - - 350 -
12 Equity for a mini Steel Mill 1,500 1,750 - 3,250
13 Throw Forward Existing
Schemes 280 - - 280 -
Total 8,298 10,939 17,017 36,254 5,531
7.7 Housing
7.1.1 Housing is one of the major pillars of macro economy and it carries tremendous amount of
backward linkages with industry and is known to have multiplier impact on growth and job
creation. The overall situation of housing across Pakistan has been dismal in many ways. According
to the 1998 census, the total number of housing units throughout the country was 19.3 million out
of which 67.7% was in rural areas and 32.3% in urban areas. The estimated housing backlog as this
census was 4.3 million units. The annual additional requirement was estimated at 570,000 housing
units and the production was projected at approximately 300,000 units with a recurring backlog of
270,000 units annually. In the context of Balochistan the dimensions are altogether different as the
entire housing stock albeit a small percentage in few cities comprises of most basic materials
seemingly a continuum of past practices.
7.1.2 The housing sector has received little attention at federal and provincial level. Most of the activities
or programs evolved by different governments in the past have been motivated by political
considerations and these suffered from adhocism and many of these remained unsuccessful. Non-
availability of consistent policy and planning; institutional frameworks especially at provincial and
local level together with land market distortions especially around major urban centers; severe
constraints of affordable housing credit and the inflation in construction materials have all made the
situation gloomy on the housing front. This in turn has resulted in mushrooming of informal
settlements and squatters in and around the urban canters’ both big and small as well as around
rural settlements. This coupled with weak urban and rural infrastructure and management has made
most of the settlements shabby having considerably poor and unhygienic living conditions.
7.1.3 Situation in Balochistan is serious if seen in the context of housing quality and livability of its rural
and urban settlements. Balochistan’s population was estimated to be 6.56 million in the 1998
Census and using inter -censal growth rate per district, population projections reflect that current
population (2013) is approximately 9.6 million. The urban population in 1998 in Balochistan was
1.57 million (23.9%) and its growth in the inter- censal period from 1981 to 1998 shows a growth
rate of 5.1% which is highest in Pakistan (Table 7.15). In terms of population density; the highest
density of population was in Quetta (286/sq.km), followed by Jafferabad (177/sq.km); Killa
Abdullah (112/sq.km). Overall population density in Balochistan was just 19 persons/sq.km.

7.1.4 In the last inter-censal
Table: 7.15: Inter- Censal Population Growth Rate in Balochistan
period, population growth
(in 000)
rates varied quite
Periods Total Rural Urban
significantly across
districts. Although the 1981 Census 4332 3655 677
average for Balochistan 1998 Census 6565 4996 1570
was 2.48%, districts such Inter Censal Growth 2.48% 1.86% 5.07%
as Awaran, Kalat, Turbat
and Sherani had growth Source: Census Reports
rates of less than 1%. The
recently concluded Population Census 2011, has not been officially published, however preliminary
findings released and reported in media stated that Pakistan’s population had grown 46.9% for the
period 1998-2011. While for Balochistan it was reported that the growth was 139.3% excluding 3
districts. This being unconfirmed and if we use the last census growth rates then the overall
population projections are reflected in Table 6.13. Both the urban and rural growth has been
projected at the same growth rate until the new census confirms the growth differential.
Table 7.16: Balochistan Projected Population 2013

Growth Rate 1881 1998 2010 Growth 2013 Male Female Rural Urban
1981-1998 Rate 1998-
2010
in (000) in (000)
2.47 4,330 6,566 8,912 2.57 9,619 5,134 4,485 7,321 2,299
Source: Census Reports 1981, 1998 and Projections
7.1.5 The projected population for 2013 is 9.6 million and it converts to approximately 1.4 million
households if we take average household size at around 6.7 persons (Table 7.16). A large majority
of these households suffer from multi-dimensional poverty and lack of resources. The overall
housing condition in Balochistan comes out as appalling when compared with other provinces in
the country. Only 23% houses in the province have burnt brick/blocks walls as against 83% in
Punjab; 66% in Sindh; 54% in KPK. A large portion of the houses in Balochistan i.e. 68% have
walls made up of mud bricks or are made up of mud against 15%, 28% and 23% respectively in
Punjab, Sindh and KPK (Fig 7.2). Similarly, the situation relating to the material used for roofs in
the houses is also very basic. 73% houses in Balochistan have wood or bamboo roofs and only 7%
houses have roofs made up of concrete i.e. either RCC or RBC (PSLM 2010-11).
Fig:7.2: Material of the Wall of Houses (PSLM 2010-11)

Burnt bricks/blocks Mud bricks/mud
100 83 Wood/bamboo Stones
Other
80 66 68
54
60
40 28 23 21 23
15 8 9
20 6 1 1 6 3 1
1
Punjab Sindh Khber Balochistan

Pakhtunkhwa

7.1.6 A district wise condition of the material used for roofs of the houses shows that other than district
Quetta, Sibi and Lasbela almost all other districts have houses having roofs made up of most basic
materials such as wood & bamboo. The ratio in most of the districts is between 70% to 80% and in
about 50% of the districts including Dera Bugti, Kohlu, Harnai, Pishin, Zhob, Musakhel, Killa
Saifullah, Sherani, Kalat, Kharan, Washuk, Barkhan, Panjgur, Kech, Kachi, Nasirabad over 80% of
houses have roofs made up of wood and bamboo. Approximately 10% houses on an average have
roofs made up of steel/cement sheets and 7% have concrete roofs made up of RCC/RBC, which are
predominantly in the three districts mentioned above.The situation on availability of drinking water
is also worrisome where only 21% population has access to piped water across the province; 23%
use taps outside/hand pumps and a large majority (30%) use water from rivers/canals/ and streams.
Over 14% use open wells for drinking water. In addition, 13%households have no toilet facility and
another 14% use dry raised latrines; 35% have pit latrines and 30% have flush toilets connected
with sewerage, tank or drain.
Table:7.17: Material Used for the Roofs of Houses

S.No. RCC/RBC Wood/ Bamboo Steel/Cement Sheets Other
1 Quetta 35.70% 26.80% 20.10% 17.40%
2 Pishin 1.80% 82.80% 15.40% 0.00%
3 Killa Abdullah 3.30% 79.80% 14.70% 2.20%
4 Chaghai 2.20% 73.40% 6.30% 18.20%
5 Nushki 6.50% 73.00% 5.20% 15.30%
6 Sibi 11.40% 43.40% 10.00% 35.30%
7 Ziarat 0.00% 70.10% 26.30% 3.60%
8 Kohlu 1.40% 83.20% 0.80% 14.60%
9 Dera Bugti 0.00% 93.60% 3.80% 2.70%
10 Harnai 0.20% 83.50% 0.50% 15.70%
11 Kalat 2.50% 86.50% 7.70% 3.30%
12 Mastung 2.40% 65.90% 7.50% 24.20%
13 Khuzdar 4.90% 78.90% 11.90% 4.40%
14 Awaran 0.00% 79.20% 2.70% 18.10%
15 Kharan 0.90% 87.20% 3.30% 8.50%
16 Washuk 0.60% 84.30% 1.80% 13.20%
17 Lasbela 18.10% 56.50% 25.50% 0.00%
18 Ketch/Turbat 4.50% 79.80% 9.80% 6.00%
19 Gwadar 5.30% 63.20% 18.10% 13.40%
20 Panjgur 0.10% 85.20% 5.70% 9.00%
21 Zhob 0.80% 83.20% 14.10% 1.80%
22 Loralai 1.40% 77.60% 9.30% 11.70%
23 Barkhan 1.00% 86.20% 12.80% 0.00%
24 Musakhel 0.00% 97.00% 0.20% 2.80%
25 Killa Saifullah 0.80% 91.30% 4.90% 3.00%
26 Sherani 0.80% 87.70% 10.90% 0.60%
27 Nasirabad 1.50% 89.70% 1.90% 6.90%
28 Jaffarabad 0.00% 77.40% 0.20% 22.40%
29 Jhal Magsi 0.00% 77.00% 1.60% 21.40%
30 Bolan/Kachi 0.60% 83.20% 5.40% 10.70%
Total Houses 73,695 755,851 107,969 101,952
Total % 7.10% 72.70% 10.40% 9.80%

Priority Areas
7.1.8 GoB acknowledges that the overall state of housing is extremely weak and more importantly due to
comparatively low economic activity, the real estate and housing markets are also weak and these
operate disjointedly in a few bigger cities only. Hence at present it may not be possible to evolve a
full- fledged housing policy in the short term as many of the important components linked to the
housing policy like housing markets, housing finance, private sector developers, land titles,
registration and building codes and other regulatory mechanisms are not available. Accordingly in
the short to medium term, the strategy concentrates to evolve a housing program for the low income
and poor and it is believed that this intervention will in turn trigger improvements in the overall
housing framework and will prepare the ground for putting out a holistic policy framework pillared
on the multiple lessons learnt during the implementation of the housing program.
Strategy
7.1.9 With a view to address the daunting housing gaps for the poor and the low income groups both in
terms of numbers and the quality of houses, the Government plans to evolve a Hosing Program with
a focus on ‘Low Cost Housing’ that can provide dedicated attention to the housing gaps in the
short to medium term. It is recognized that this program other than addressing the needs for shelter,
will simultaneously trigger construction, production of goods and job creation related economic
activity in the province. The emphasis of Government would be to not only create an enabling
environment but to lead the strategy implementation in collaboration with a range of players
including but not limited to the financial institutions; real estate developers; urban and housing
planners; civil servants and most importantly the beneficiary population. This in turn will gradually
strengthen the housing and land markets together with housing credit markets on the basis of which
the Government can then put across a more holistic policy regime for a wider and technically
geared attention to the sector. As a part of this Strategy, the Government plans to:
i. Create a dedicated but lean institutional set-up, a ‘Balochistan Housing Unit’ within the P&D
Department under a Steering Committee comprising of senior civil servants; urban planning/
housing experts; some reputable community representatives for drawing out a medium term
“Housing Program” for the poor and low income groups as a part of serviced housing enclaves in
urban as well as rural areas. This will be developed in consultation with expert institutions,
housing developers’ and community organizations which could partner with government on this
initiative. This will require considerable technical assistance for drawing up financially viable and
sustainable program design. Partnership with organizations like UN Habitat and Acumen Fund
would be explored.
ii. Evolve a Housing Program geared towards three major objectives:
a. Commercially viable Low Cost Housing as part of better serviced localities i.e. localities
having a minimum level of water & sanitation services;
b. Up gradation and re-development of poor and low income localities again as a

component of improving the run- down houses and the water and sanitation services;
c. Availability of serviced plots for the general population through better planned housing
schemes on commercial lines;

d. GoB subsidy be linked to providing house titles in the name of women head of the
family;
e. Housing program to be taken forward through the private housing developers and
community organizations and it will be pillared on two layers of subsidies;
f. Serviced low cost housing plots/ houses to be largely subsidized for the poor and
vulnerable populations through proper data- based targeting. Given the fact that BISP has
recently undertaken an extensive poverty assessment across Pakistan; this data base can
be considered to be used for transparent targeting. This will facilitate creating this asset in
the name of women;
g. Partial subsidy based low cost housing to be considered for the low- income segments.
This would be by way of providing free government land and interest subsidy on the
housing finance.
iii. Housing program will technical evaluate multiple low cost technologies which could be used in
Balochistan. These technologies preferably use locally available materials for remaining under
budget and these are usually provided with reinforcements for greater strength and sustainability.
In addition:
a. Development of Master Plans/Structural plans to be compulsory requirement for all urban

and rural housing enclaves;
b. Government to remain responsible for providing the connectivity to bulk utilities including
water, electricity, sewerage and where possible with gas;
c. The Housing program would support structures aligned to the rich cultural heritage of the
province and which also conform to the peculiar weather and climatic conditions in different
regions of the province. As a part of this there must be adequate research to explore
possibility of mass production of low cost construction material aligned to the cultural and
environmental conditions;
d. The program to have adequate environmental and social safeguards especially the natural
calamities and the construction materials and the locations must conform to the given
environmental safeguards;
e. The Housing Unit in collaboration with Local Government to ensure that the building by
laws, codal formalities are streamlined and simplified to facilitate the developers/builders,
contractors and common citizens;
f. Community participation may be ensure all along to involve the stake holders in the decisions
relating to housing program with major focus on women who may be given a central decision
making role in order to get their ownership.
iv. Land is one of the principal inputs for housing. Its identification, allocation and servicing are
critical components of housing program. The program would need to undertake an extensive
exercise to identify and create a land bank of suitable pieces of land in all the district
headquarters; tehsil headquarters and major rural settlements for earmarking for planned housing
enclaves.

v. Katchi Abadies upgrade/ re -development/ re- settlement may be taken up as a compulsory
component of master plans. Communities can be encouraged to identify the existing housing
enclaves for upgrade for which a separate financing structure can be evolved. This will require
dedicated community mobilization for developing internal consensus.
Table 7G: Housing (Rs. in million)

Sr. Strategy FY1, FY3, FY5, Total Proposed
No FY2 FY4 FY6, FA
FY7 Portion
Housing Unit; Technical Assistance; 139 38 64 241 241
1 Program Design; Master Plans;
technical designs)
2 Interest on 120,000 Housing units 480 1,320 2,880 4,680 -
Cost of 25% Housing Program (new 2,214 2,214 3,321 7,750 -
3
Construction)
Cost of 25% of Housing Program 571 571 857 2,000 -
4
(Up gradation)
5 Cost of Land Development 2,229 2,229 3,343 7,800 -
6 Program Monitoring 66 34 57 157 144
Total 5,699 6,406 10,522 22,628 385

08
Urban Development

8. Urban Development
8.1 Investing in Cities for Creating Growth Poles
8.1.1 With a vast geographical area and a thin spread of population it is particularly important to
develop growth poles, which can serve as centers from which growth spread effects stimulate the
surrounding economy of mainly scattered population in Balochistan. Growth of relatively large
urban settlements has been rare in Balochistan’s history especially during colonial era when there
was neglect of urban centers in the southern regions. With the exceptions of Quetta- and perhaps
Gwadar in recent years- the growth and decline of urban settlements has largely been a response
to changing trade routes and transportation systems.
8.1.2 Urbanization has proceeded slowly in Balochistan. As per 1998 census, 23.9% population was
urban. The districts in which the urban population exceeds 30% are Kalat, Sibi and Lasbela. It
exceeded 50% in Gwadar and Quetta has over 70% urban population. Rate of growth of
population in these districts significantly exceeds the provincial average. Another important
feature is that from 1981 to 1998, the urban population in Balochistan grew at a rate of over 5%
which is one of the highest in Pakistan. Balochistan’s population is projected to increase by over
50% during 2013-2030 and almost 50% of this is expected to be resident in urban areas. As we
have seen Balochistan is the least urbanized province of Pakistan however the rate of urbanization
is accelerating and by 2013, 2.3 million people are projected to be urban residents.
Table 8.1: Balochistan District Population Projections (in '000)

Census Projected* Projected* Projections
1981 1998 2010 Growth Rate 2013 Urban Rural 2020
Quetta 382 760 1234 4.51% 1,348 1,037 356 1,835
Pishin 202 367 559 3.10% 613 39 582 736
Lasbela 110 118 353 5.17% 390 135 229 556
Turbat 380 413 439 3.81% 473 74 372 615
Gwadar 112 185 263 3.46% 282 48 239 357
Loralai 235 297 351 2.38% 368 43 323 434
Nasirabad 129 246 387 2.37% 406 67 366 478
Khuzdar 276 417 558 3.51% 598 170 430 761
Sibi 99 103 156 1.87% 162 56 117 184
Killa Abdullah1 121 203 625 5.70% 698 110 603 1,030
Balochistan Development Statistics 2010
Notes: 1- Chaghi population is decreasing and migrating to Killa Abdullah
8.1.3 Urban development is faced with a range of challenges and a few among the major constraints are
lack of adequate institutions and non-availability of suitable infrastructure – water, sanitation,
housing, transportation as well as adequate education & health services. Leaving aside Quetta,
most of the urban centers in the province are basically small towns which have overgrown in last
few decades through spread of informal housing and bazaar areas having bare minimum of
infrastructure. There is now a strong case for undertaking a planned upgrade and development of
the bigger towns for creating growth poles in a manner that triggers growth in the semi-
sedimentary population in the hinterlands as well.
8.1.4 Government of Balochistan accordingly plans to undertake a prioritized development of all the
district’s headquarter cities, beginning with the headquarter cities in: Quetta, Pishin, Gwadar,

Lasbela, Kech, Loralai, Sibi, Khuzdar, Nasirabad and Killa Abdullah initially and it would then
be rolled out to the other headquarter cities. Urbanization strategy is being used as a means for
promoting development across the district region as the cities/towns in each district are the
regional hubs of administration, markets and industry (most importantly manufacturing and
utilities). The overall size of the economy in these headquarter cities is quite small. The district
gross product of these cities is dominated by Agriculture and as such their growth will hinge on
integrating their economy to the economy of the district and linking all urban growth poles to
each other as well as to growth poles surrounding Balochistan.
Table 8.2: Gross District Product (World Bank Estimates)

District Agriculture Mining & Manufacturing Electricity Construction Wholesale Transportation Finance, Community
Quarrying & Gas & Retail Storage & Insurance & Social &
distribution Trade Communication Real Estate Personal
Services
Quetta 3.2 2.2 11.3 10.7 0.7 42.5 7.1 8.0 13.5
Pishin 14.5 - 1.6 0.2 0.9 38.3 8.7 3.0 12.9
Lasbela 28.7 4.0 36.5 3.3 0.6 16.9 6.5 2.2 12.3
Turbat 22.3 6.0 17.2 2.2 0.8 24.9 12.5 1.8 11.7
Gwadar 26.2 7.2 14.7 - 0.8 27.6 7.9 0.6 12.2
Loralai 26.6 35.6 12.3 - 0.7 13.1 12.3 0.4 12.4
Nasirabad 53.7 3.6 1.5 0.9 7.1 8.4 0.4 10.7
Khuzdar 32.4 0.8 14.0 0.6 1.4 9.9 8.4 0.3 12.2
Sibi 20.8 6.4 8.4 13.2 1.0 15.9 4.9 4.0 13.3
Killa
Abdullah 14.7 1.6 4.1 4.9 1.0 28.9 13.5 4.8 12.9
8.1.5 Urban master plans are already being developed for six divisional headquarters. Under the BCDS,
a key component would be housing schemes especially for poor and low income groups to
contain the growth of slums. This is expected to involve subsidization involving public land; low
cost finances. Such planned approach would require a robust partnership with private estate
developers and active involvement of the local communities especially the women stakeholders at
both the planning and execution stage. Another cross-cutting constraint across all the urban
centers is weak institutions with the exception of Quetta. The Town Municipal Committees,
which are the major town management organizations, are extremely weak both in terms of
finances and organizational capacities. These are managed by mostly low grade employees
having little technical knowhow of urban management and services. Institutional upgrade would
thus remain central to urban development.
8.1.6 The ten district headquarter cities selected for upgrade of municipal infrastructure and institutions
in phase 1 are the major cities in the provinces and their development is expected to trigger
economic activities in the surrounding region. At present there is little data available for these
cities and as such their economic status is being examined on the basis of district economic data.
As these begin to growth and house greater populations, economic activities, there would be
greater chances for dedicated city data collection on the pattern of other major cities in the
country.

8.2 Quetta; building a leading capital city
8.2.1Quetta is the most urbanized district of the province with over 70% of urban population and having a
population growth rate of 4.5%, which is one of the highest in Pakistan’s urban centers. Its
population is expected to reach 1.83 million in 2020. It has highest concentration of senior
managers and professionals, who make up 15% of the population. The share of skilled workers is
15% (most of whom are service sector workers and salespeople). Unskilled workers constitute 16%
of the district labor force and unemployment rate is quite high at 22% in 2010. Quetta has the
second highest per capita district gross product in the province. Trade accounted for about 43% of
district product in 2011 and share of community services was highest at 13.6%. The share of
manufacturing, agriculture and mining in Quetta district product was 11.3%, 3.2% and 2.1%.
Clearly like other provincial capitals in Pakistan, with the exception of Karachi, Quetta has evolved
into a service city.
Table 8.3: Quetta’s Share of Private Sector Outstanding Credit

Quetta Balochistan Quetta as % of Balochistan
June 2008 4,390,026 7,003,393 62.7
June 2009 4,137,013 7,605,390 54.4
June 2010 4,169,687 6,962,998 59.9
June 2011 3,502,759 6,377,946 54.9
June 2012 2,939,399 6,255,884 46.9
Average 2008-2011 55.7
8.2.2 In June 2012 Quetta district accounted for 47% of the outstanding private sector bank credit
extended to Balochistan. In June 2008 this share had been as high as 62.7%. It has clearly declined
on account of the growing instability in the city in last few years. Quetta’s socio economic
infrastructure is better developed with 75% of the housing stock made of burnt brick. Two third of
the population has access to tap water, 94% of households utilize gas for cooking purpose. Two
third of the houses have more than three room each. 90% of household have access to telephone
services (mainly mobiles). While agricultural production is limited, Quetta is in the center of the
fruit hub and mineral deposits are also extensive in the region. Despite being the most populated
region and hub of the economy, Quetta has to go afar to graduate into a city, which encapsulates the
knowledge and technology for leading other regions in the province.
8.3 Pishin; a horticulture hub
8.3.1 Pishin’s population is expected to reach 700,000 by 2020 and currently it is estimated at 576,000.
Pishin’s economy benefits from partial integration with Quetta. The trading sector is well
developed and more than a third of the workforce comprises of commercial workers; skilled
agricultural workers constitute another quarter but manufacturing skilled workers represent only 4%
of the workforce. The district unemployment rate is extremely high at over 31% in 2010 – this
emphasizes the need for a rapid expansion of labor intensive projects such as food processing units
which can exploit the abundant horticultural resources of the area. Trade accounts for about 40% of
the district gross value added followed by agriculture (14.5%) and transport, storage and
communication (8.5%) is low especially compared with other northern districts.

8.3.2 The social development indicators are poor,
with about 40% of the houses consisting of 2
or less rooms. More than 90% of the houses
are made of mud and piped water is
available to only 17% of households. Gas is
widely available and 93% of the households
use gas for cooking and mobile telephone
carriage is almost universal. According to
SBP data private sector credit outstanding
has fallen in Pishin from Rs.86.7 million in
June 08 to Rs. 58.1 million in June 2012 –
this is just about 1% of private sector credit
outstanding in Balochistan in FY12. Private
sector credit is concentrated in agriculture (37%) and manufacturing (35%).
8.4 Lasbela; strengthening industrial base
8.4.1 Lasbela is one of the most developed districts

of Balochistan and is the second most rapidly
growing district as well. It is estimated to
have a population of half a million in 2020 up
from 118,000 in 1998 and from about
390,000 in 2013. 39% of the labor force in
the district is skilled and well over 50% of the
workforce is in agriculture and related
businesses. According to World Bank
estimates, Lasbela has the highest per capita
product value in Balochistan. Here,
manufacturing accounts for well over a third
of district product; the highest in the
province. The second leading production
sector is agriculture accounting for over a
quarter of district product. In FY 08 commercial bank private sector advances to Lasbela amounted
to Rs. 466.2 million, which fell to Rs. 87.3 million by June 2012. Most credit is concentrated in
agriculture, followed by manufacturing, transport and communication and real estate sector. No
credit is extended to the ship breaking industry, utilities, and social sectors.
8.4.2 LIEDA operates 5 industrial estates in the district and has planned to expand Hub Industrial estate
and Gaddani Marble City and establish a power plant. These plans will all be contingent on
availability of additional electricity and water in the region. There is need to prioritize construction
of the dams and the power plant to speed up growth in the district. Despite being one of the
provincial growth poles, socio-economic indicators remained weak here. One third of the
households are constructed of bricks and 90% rely upon wood for cooking. A third of the houses
are one room residences but average household size exceeds 6 persons. There are only three
(public) hospitals in the area and 80% of the births take place at home. Literacy levels are low. The
area has suffered from drought as well heavy rains and flood leading to loss of life (both human and
livestock and collateral damages).

8.5 Turbat; a dates hub
8.5.1 Turbat is the largest city of Makran division and

it has an airport and is connected with road to
Gwadar in south, Panjgur and Awaran in north -
west and north. The district population is
projected to exceed 615,000 by 2020. In 2010,
over one-third of the population was unskilled; a
fifth of the work force was of skilled agricultural
workers and about a quarter were service sector
workers. According to World Bank estimates
about 17% of district product was in the
manufacturing; 25% in the trade sector and 22%
in agriculture. Level of economic activity
declined in the district in last few years as the
private sector credit outstanding to Kech farmers
declined from Rs.241.4 million in 2008 to Rs.46.3 million in June 2012; a commutative fall of over
80%. In June 2012, 45% of outstanding private sector was extended to trading enterprises, 26% to
manufacturing, 17% to mining and 10% to Agriculture.
8.5.2 The overall social sector indicators in the district are weak. About 80% of the homes have non-
cement roofs and about three-fourth of the houses are constructed with mud. Piped water is
available to only 18% of the population and two third of the population used wood as fuel. Gas is
available to only 5%. Over 80% of the houses have two or less than two rooms each and about half
the population has no access to sanitation services. Turbat town has universal excess to electricity
but villages in the district largely lack this access.
8.6 Gwadar; building a port city
8.6.1 The establishment of Gwadar port city is seen a

major event in the recent development history of
Pakistan (and Balochistan). It is being developed
as a major outlet for international trade of
Afghanistan and the eastern Central Asian
republics and is also designed to serve as a major
port in the country in addition to Karachi and Port
Qasim. Gwadar’s population is estimated to be
287,000 in 2013 and over 350,000 in 2020. If we
look at Gwadar’s share of GDP, almost 54%
accrues from agriculture and trade; 14.7% from
manufacturing and 12.2% from community, social
and personal services. The local economy is thus
still dominated by agriculture including fisheries
but a large part of it is taken to Karachi for both local market and exports and there is very little
value addition which is happening in Gwadar. Gwadar’s share of commercial banks’ private sector
advances is stagnant over FY08 to FY12 and it between Rs. 14 million to 25 million in this period.
8.6.2 The physical and social infrastructure is inadequately developed. Metaled roads measure about 280
km only. There are only about 4,000 telephone connections and few post offices and only 15 bank
branches. Two third of the roofs are constructed of wood and more than half of the houses are made

of mud. Piped water is available to only 30% of the population and cooking is done on wood fire by
77% of the household. Gwadar Development Authority has developed a master plan for the city
demarcating, residential, commercial, and industrial and highway sets.
8.7 Loralai; a Minerals Hub in North
8.7.1 Loralai will have a population of about half a

million by 2020. A large part of labor force,
about 40% is in agriculture and 31% consists
of unskilled workers. This is a mining
district and about a third of the gross district
product is generated in the mining sector;
agriculture accounts for a quarter of district
value added; manufacturing and trade is
roughly equivalent at about 12% each. Like
other districts, the economic activity
considerably declined in the period from 2008 to 2012 as reflected from the decline in the
outstanding private sector credit from Rs. 84.3 million in June 2008 to Rs. 55.8 million in June
2012. Private sector credit was concentrated in mainly agriculture and manufacturing.
8.7.2 Social sector statistics are poor. Three fourth of the houses have wooden or bamboo roof and 90%
are made of mud. Only 4% of households have access to piped water and 80% use wood as the
main fuel, only 5% have access to gas. About 70% of houses have two or less than two rooms each
and two thirds of households have no access to telephone services.
8.8 Khuzdar; a midway agriculture span
8.8.1 Situated right in the center of the province,

Khuzdar is very well a connecting point of not
only roads, temperatures but also cultures as it
connects Bela with central Balochistan and
also connects Makran with the central and
eastern districts. A concentrated attention on
Khuzdar can further help it grow into a center
point for Balochistan and major driver of its
economy would be Agriculture including
livestock.
8.8.2 Khuzdar’s population quadrupled during 1961–

1998, rising from 103,000 to 417,000. It was
projected to be 558,000 in 2010 and to rise to over three quarters of a million by 2020 when it
could become second or third largest city in Balochistan. The labor force consists of agricultural
workers and unskilled laborers and the unemployment rate at 18.8% is among the highest in
Balochistan. According to the World Bank estimates its gross district product was Rs. 32.2 billion
in FY11 – third highest among Balochistan’s districts (these estimates are all at FY2000 constant).
About a third of district product originates in agriculture, 14% in manufacturing; 12% in
community and personal services; and less than 10% in trade.
8.8.3 In terms of its financial sector, outstanding private sector credit to Khuzdar district declined from
Rs. 63.2 million in June 2008 to Rs. 26.6 million in June 2012, a massive cumulative fall. It is
clear that despite having a significant share of gross provincial product Khuzdar remains one the

most credit deprived regions in the province. In 2012 the bulk of Khuzdar’s outstanding credit
was allocated to manufacturing (41%) and trade (37.6%); agriculture sector’s share in 2012 was
16%, despite the fact that agriculture’s share in gross district product was 45%. Large variety of
major and minor crops, vegetables and fruits are grown in the region. Livestock exceeds two
million according to the 2006 census. Mineral deposits in the district include chromite, manganese
minerals, lead, zinc and marble. Large manufacturing units are few including ginning factories
and flour mills. Apparel embroidery and carpet knitting is widespread as a household industry.
8.8.4 The health services are underdeveloped with only 60 doctors and just one major hospital in the
district. School enrollment rates are low and dropout rates are high. Social sector indicators are
poor; only about 5% have concrete roofs and 85% of houses are made of mud. Less than 20% of
households have access to tapped water and 85% of households use wood as a main cooking fuel
and the majority of households have two or less than two rooms. Less than 60% of the households
have telephone services (including mobiles).
8.9 Nasirabad; strengthening a crops center
8.9.1 Nasirabad together with

Jafferabad is the granary
of the province and one
of the canal command
area district. Its
population is projected
to be 387,000 in 2010
and projected to reach
half a million by 2020.
About three fourths of
the labor force is in
agriculture. According to
World Bank estimates
about 54% of gross district product (at constant 2000 prices) is from agricultural. Community and
personal services accounted for about 11%; transport sector 8%; and manufacturing only 3.6% of
gross district product in 2011. Financial sector has been fluctuation in last few years. Outstanding
private sector credit to Nasirabad rose from Rs. 236.4 million at end June 2008 to Rs.371.6
million in June 2010 and dipped to Rs.273.4 million in June 2012. 56% of this credit was
extended to agriculture and 39% to manufacturing enterprises. Nasirabad is essentially a crops
growing region and major crops include wheat, barley, mustard, lentils, fodder, rice, fruits, onion,
potato, melons and sugarcane.
8.9.2 Nasirabad’s social development statistics are extremely weak with 84% of the houses made of
mud; only 15% of the population has access to tapped water. 95% of the population uses wood as
the main cooking fuel. 80% of households have two or less rooms each but use of
telecommunication is widespread with 75% of the population possessing mobile phone.
8.10 Sibi; developing a mineral city
8.10.1 Sibi’s population was 103,000 by 1998 and the 2010 projections reported a population of 156,000
which is surprising. This is expected to reach 184,000 – (8%below the 1951 level) by 2020. One
fifth of the workforce in the district is unskilled and about a third is in agriculture. Total district
product is extremely low, estimated at just Rs. 9 billion in 2010–11 (at constant FY2000 prices)
among the lowest in Balochistan district. Agriculture’s share in gross district product of Sibi was

about 21% in FY11 followed by trade (16%); community services (13% each); and manufacturing
(8%) while that of mining was even lower
6.4%. This is surprising for one of the most
mineral rich district of the province.
8.10.2 Private sector credit outstanding to Sibi

declined from Rs. 27.80 million in June
2008 to Rs. 21.98 million in June 2012; a
cumulative fall of over 20% in a five year
period. This indicates weak financial
markets and some focus on financing
purchases of consumer goods not produced
in Sibi. In June 2012 agriculture accounted
for 38% of private credit outstanding,
commence for 33% and manufacturing for
about 25%. No bank financing was available for social and community services and real states.
8.10.3 Despite being a historical city social indicators are very weak. Only 11% of homes have cemented
roofs and 50% of houses are made of mud in the district. However piped water is available to two
thirds of the Sibi population and almost equivalent proportion have access to gas for cooking
purposes, about 40% of houses have more than 2 rooms each and access to land line and mobile
telephone services is almost universal. A wide range of major crops, fruits and vegetables are
grown in the area. Coal, marble, gypsum and limestone deposits and coal extraction is significant
(about 50,000 million tons annually). Food manufacturing and leather manufacturing has been
established. There are only seven bank branches in the region and no private sector banks.
8.11Killa Abdullah; a Gateway for Trade
8.11.1 Killa Abdullah is the border district of the province and its headquarter city Chaman the trade
route to Kandahar in Afghanistan. Its population is projected to have increased from 203,000 in
1998 to 625,000 in 2010; an annual growth rate of 5.7%, which is phenomenal and at this rate it is
projected to reach over a million by 2020, to become the second largest district in the province.
About one third of the labor force is in trade linked activities and a quarter is in agriculture. The
unemployment rate is high at over 25%. According to World Bank estimates about 29% of gross
district product (at constant 2000 prices) is on account of trade; 14.7% agriculture; 12%
community and personal services. The overall gross district product was estimated to be Rs. 34
billion in 2011.
8.11.2 The overall district social development statistics are weak – 88% of the houses are made of mud.
Only 17% of the population has access to tapped water. 80% of the population use wood as the
main cooking fuel. 80% of households have two or more rooms each and use of telephone is
widespread with 94% of the population possessing mobile phone.
Strategy
i. The most significant component that requires attention for the strategy to gradually develop cities
as growth poles in Balochistan is the challenge to strengthen the institutions. Except for Quetta
which has dedicated Municipal Corporation, a development Authority and a Water & Sanitation
Authority, the remaining district head quarter cities have very weak institutional set ups. The
Municipal Committees have weak staff, weak systems, low budgets and also these have been
relegated to handle only residual subjects such as sanitation, street lights etc. The water supply

schemes are undertaken by the PHED department and for urban development, the UP&D
development has been created. With a view to strengthen the management of urban and municipal
functions and regulations there is need to bring greater clarity into the roles and also there is need to
evolve an overarching regional development bodies for undertaking long term planning and
development of urban centers in the region for ensuring their economic connectivity with the rural
hinterland. Under this:
o GoB plans to create 6 Regional Development Authorities (including the three existing
Authorities i.e. QDA, GDA and BDA by reorienting and restructuring these) for a holistic
regional planning and development. These RDAs will focus on urban development of major
towns and will simultaneously attend to the infrastructure needs of rural settlements through
integrated planning. These will undertake master planning, land management, water
sanitation, infrastructure and housing across the region in both urban and rural areas. The two
existing developing Authorities can be restructured to handle regional development such as
QDA can now be responsible for Quetta division; GDA for Makran division.
o Undertake restructuring of all major urban municipal bodies for improving the staffing and
their systems. There is severe shortage of technical expertise including planners , engineers
and urban managers in these institutions.
o In order to provide dedicated operational funds on sustainable basis, a Municipal Fund will be
created. However, with gradual growth of the cities, improved infrastructure and services, the
Municipal Institutions would be encouraged to concentrate on recover of user charges. This
can also be gradually improved by increasing the involvement of communities in planning,
decisions and implementation for greater ownership.
ii. Undertake master Plans of all the cities and the future growth must conform to these plans.
Strengthen the urban planning and management institutions further by modernizing the
management and especially the regulatory mechanisms relating to zoning and building controls.
iii. Undertake up-gradation of the existing water and sanitation systems in the cities through adequate
investments. The city roads to be rehabilitated and necessary planning be undertaken for
decongesting the city markets by earmarking land for the whole sale markets; bus stops etc. in the
outskirts of cities. Relocation of markets, including livestock and agriculture markets will create
the required space for improving the down town areas by widening roads, pavements and
improving drainage system.
iv. None of the cities have adequate infrastructure for water treatment as well as for treatment of
waste water. Both these components to be given adequate attention in the infrastructure upgrade
planning.
v. The future housing colonies to be planned well with adequate water, sanitation and internal roads
facilities. Private sector be encouraged to invest in affordable housing through a public sector
subsidy on land and house finance interest.
vi. Strengthen property rights and improve efficiency of land titling and registration. This is
important for gradually developing vibrant land markets in the cities and removing distortions
which will greatly facilitate in urban growth as well as growth of real estate. Reduce levels of
public land ownership through auctions and use proceeds to finance critical infrastructure and
engage in a reform of public land development agencies.

vii. Encouraging growth of small industry in dedicated industrial enclaves will help in growth of
economic activities in cities. Quetta, Pishin, Loralaiand Turbat must now graduate towards food
processing industry given their locational advantage in the hub of Pakistan’s horticulture
production. Small industrial zones may be established under the SEZ Act and private sector be
incentivized to establish food processing, packaging units for high end local market and export.
viii. Establish an ICT city in Quetta through private sector; by earmarking land, providing
infrastructure and subsidy on finance to encourage creation of software houses and hardware
workshops for creating a leading technology park in the communications and IT services.
ix. Support establishment of industry having backward linkage with raw material in the region such as
cement industry, coal and power generation plants for cities surrounded by mineral reserves.
x. For Gwadar, encourage establishment of industry which can serve to stimulate the spread effects
of port development, such as (a) ship maintenance and repair services (b) cement and construction
and (c) food manufacturing. This requires availability of finance and infrastructure.
xi. Prepare and implement a rural access road program to integrate the cities with the hinterland.
xii. Technical Training and skill development centers be accorded due attention to train manpower in
all the cities. Most of these cities also do not have much access to higher education and tertiary
health care. Ensuring availability of these services together with improving the school education
and basic health services will be important for improving livability of these cities.
xiii. Planning for Phase -2 cities to begin simultaneously and after unrolling investments in the Phase I,
the work on these to also be initiated.
Table 8A: Urban Development (Rs. In million)

Sr. FY1, FY3, FY5, FY6, Proposed
No. Strategy Total
FY2 FY4 FY7 TA Portion
1 Develop Master Plans of Cities 50 100 0 150 112.5
2 RDA Zhob 159 146 129 434
3 RDA Sibi 159 146 129 434
4 RDA Kalat 159 146 129 434
5 RDA Nasirabad 159 146 129 434
6 Reorient QDA to Quetta Division 36 37 29 102
7 Reorient GDA to Mekran Division 34 32 41 107
8 Institutional development of 9 TMCs 775 163 - 938 704
9 Water, Sanitation & Internal City
Roads for 9 Cities 500 1,000 1,500 3,000
10 Rehabilitation of existing
700 - - 700
Infrastructure
11 Infrastructure Dev -Phase II Cities - 1,000 3,000 4,000
12 Municipal Fund 300 700 1,500 2,500
13 Throw Forward of Existing Schemes 1,861 - - 1,861
Total 4,892 3,616 6,586 15,094 816.5

09
Cross Cutting
Sectors

9. Cross Cutting Sectors
This section of the BCDS describes strategies that cut across several sectors, such as Gender, ICT,
Environment and Disaster Preparedness. All these have lead departments in the government however
these invariably are components which exist across many departments and are implemented by them. The
costs relating to these strategies are already included under implementing authorities however a few
important features and certain stand- alone costs have been included for the lead departments to carry
forward.
9.1 Gender
9.1.1 The GoB is fully committed to ensure equal opportunities to all citizens of the province. Given the
generally low social status of women in such an overridingly patriarchal society, it is important to
make conscious and focused efforts for providing opportunities for women empowerment. In
Balochistan, the male to female ratio in the population is 115:100 as per the population census
compared to other provinces where it is much lower. The enrolment levels of girl children are lower
than boys. There is also a gender gap in the labor market where participation rates of women aged
10 year and above are 60% lower than those of men. Some of the prominent aspects of BCDS
emphasis on gender are:
i. Under the proposed Stipend Based Skill Development Program within the Pro-poor program
component, 30% trainee candidates are proposed to be women. Within this program, women
focused training for nurses/midwives have been proposed.
ii. Another intervention, “Women Focused Micro-Finance for Crafts & Other Livelihood”
would concentrate on ‘Crafts’ and other small enterprises through market linkages through
RSPs for targeting about 50,000 women.
iii. GoB plans to take forward a Gender Free School education. Additionally under two
interventions relating to partnering with private sector for providing education to 300,000
children, it has been emphasized that the out of school girl children be given priority
iv. Under the strengthening of Literacy Program, proposed to be undertaken through NCHD,
the NCHD would prioritize participation of girl children in the literacy program
v. Under health, the strategy focuses on primary health of mother and child at the center stage.
The number of BHUs is being increased and 30% upgraded to BHU Plus level for providing
MNCH services.
vi. One third of BHUs have been proposed to be upgraded to BHU Plus model for delivery of
services on 24/7 basis in all the districts. In addition one secondary level health facility is to
be converted into secondary level hospital and having maternal care and other services.
vii. A Nutrition Program is to be undertaken through dedicated packages and inter-sectorial

linkages, which will be mother and child focused programs.
viii. Under Agriculture; there is a proposal for dedicated interventions for women focused
community mobilization and grant of subsidized inputs including certified seeds and
fertilizers for high value products to women farmers.

ix. In the livestock component the milk processing will focus on women employment.
x. For the Housing Program, women focused community participation has been stressed for
involvement in planning and construction of housing enclaves.
xi. Under Women Empowerment, a fund to be created for providing emergency services for
women and women hostels and protections homes to be proposed.
xii. Support establishment of Gender Focal Persons in every GOB department, and develop a
guidance note on capacity development in gender mainstreaming. These officials should be
responsible to the national gender focal person. Significantly, gender focal persons are not
new civil service positions, but rather those officials whose job descriptions include gender
issues.
Table 9A: Women Empowerment (Rs. in million)

Capacity Development of Women
1 Development Dept. 110 120 - 230 230
Women Shelter Homes/ Hostels
2 200 300 700 1,200
Women Empowerment &
3
Protection Fund
400 600 1,600 2,600 2,080
4
Schemes
135 135
Total 845 1,020 2,300 4,165 2,310
9.2 Technology for Empowering People
9.2.1 GoB is cognizant of the importance of technology in the overall development framework and there
is recognition that ICT can be instrumental in improving services and connecting people to the
service providers both public as well as private. GoB considers technology to be an important tool
for bringing efficiency in the larger spectrum of governing. Strategy components on use of ICT are
as under:
i. Creating HRMIS incorporating the data of all the employees of the GoB and linking this with
the payroll for a more scientific management of the personnel management.
ii. Gradually computerizing the land data for bringing transparency in land titling and land
transactions. This will improve real estate in the province. A beginning to be made from
Quetta and be expanded to other cities followed by rural settlements in subsequent phases.
iii. Increasing use of IT for revenue collection. A beginning here can be made in computerization
of the Registrar’s offices in phases.
iv. The provincial secretariat is gradually moving towards communication efficiencies through
use of computers and internet; this however needs to be expanded to the District Offices and
Tehsil Offices for improving connectivity with field offices.

v. Introducing IT in all the middle and high schools in next three years. This is important
intervention for developing the IT literate workforce in the province in future.
vi. Under the interventions relating to expanding Primary Heath Care and integrating preventive
program with BHUs; greater use of ICT is proposed for creating household databases for a
more scientific handling of the mother and child health as well as that of men.
9.2.2 Growth in the ICT is now no longer confined to corporations, governments and individuals who
already participate in something approximating to the vision of a knowledge society. There is now a
substantial movement to spread the benefits of ICT to poor communities, both in the industrialized
countries as well as less developed countries. To many it may seem unrealistic as how can an
expensive and complex technology benefit those whose access to resources including public
services remains limited to the extent of being non- existent? How can technology benefit those
whose education, skills as well as language barriers make such prospects extremely bleak? These
are valid barriers however many less developed countries and regions have made considerable
inroads into this domain for empowering people by raising the capacities and knowledge through
ICT reach out. Some such examples are:
Box: 8.1 ICT Innovations for Reaching Out to the Poor

India has initiated an ambitious ICT program for community development for creating Community
Service Centers (CSCs) in each panchayat to be run by an entrepreneur under the supervision of a
private company handling number of tele-centers in a couple of districts. These are commercial
centers which provide commercial services such as internet surfing, communications, information
on mandies; prices; other agri information together with some component of public services and IT
trainings as well. These are subsidized by the central government. This intervention aims to spread
IT infrastructure to Indian villages and to create a private sector infrastructure that can deliver
multiple services under a public subsidy
In Sri Lanka the SarvodayaShramadana Movement is establishing multi- purpose community tele-
centers. These are to serve as village banks and include development of community database,
computer training and dissemination of multiple other informations to villagers through Mobile
Multimedia Unit. There are similar interventions in many other developing countries including
Indonesia, Thailand, Uzbekistan and others.
In Nepal, there are 60 government sponsored rural Tele-canters in 23 districts managed by different
agencies. These have been set- up by different agencies including government under different
modalities. NGOs participate with local community for these on cost-sharing basis. The financial
sustainability of government sponsored tele-centers especially is at risk on account of their
operational costs.
Strategy
i. Establishing ICT based tele-centers in all Tehsils in some designated schools/government buildings
through private sector. These can be initially fully sponsored by government and gradually these can
be made commercially viable with some viability gap funding by GoB.
a. GoB to use these for computer training programs for secondary school children.
b. Work as Agriculture, Livestock, Fisheries Extension centers for providing information on

markets; prices; seeds; fertilizer; pesticides; newer techniques to farmers; processors and
wide range of other uses.

c. Community dissemination programs on health, hygiene, sanitation, disaster preparedness
including such critical programs as immunization etc.
d. Provide range of ICT based commercial services to general public which are available in a
cyber café such as internet service, e-mail facility and computer training to individuals.
e. Can be used by government departments for range of public services such as updating towns
and villages databases; data on municipal and community infrastructure; updated information
on school and health infrastructure and other information. These can also be used for adult
literacy and women empowerment information.
Table 9B: ICT for People (Rs. in million)

Tele-Centers through Private
1 Sector funded by public sector 542 542 813 1,897 1,018
Computer Training of 30,000

2
children every year
240 240 360 840 -
Expanding ICT Usage in
3
Secretariat (incl hardware)
100 100 150 350 -
Introducing ICT Usage in
4 Field Offices (INCL 100 100 1,250 1,450 -
(HARDWARE)
5
Schemes
300 300 600 1,200 -
Total 1,282 1,282 3,173 5,737 1,018
9.3 Environment
9.3.1 GoB has remained sensitive about the state of environment in the province and there is strong
recognition of the strategic importance of environmental conservation as this ultimately is the most
valuable asset of Balochistan. Earlier in year 2000, GoB with the support of IUCN and the Royal
Netherlands Embassy prepared and approved the Balochistan Conservation Strategy, which was
both a guideline as well as action plan for development. The BCDS has amply stressed on the
significance of environmental conservation and in fact it is more than a cross cutting theme, as it is
a part and parcel of the development paradigm especially for a province like Balochistan where
environment is sustenance for human beings. Some important components in this regard are:
i. The road sector construction envisages that all future roads construction should include
environmental assessment and emphasizes road side plantations for landscaping and
environmental conservation
ii. Water strategy emphasizes integrated management of canal and drainage system and reuse of
drainage water after treatment. It emphasizes water conservation and re charge of ground
water through greater harnessing of flood waters and discouragement of tube wells. Use of
high efficiency irrigation systems and water shed management for containing environmental
degradation
iv. For water supply and sanitation for urban and rural settlements the BCDS calls for preparation
of future schemes aligned with environmental safeguards as well as in conformity with health,
hygiene and environmental safeguards

v. Under the Housing, up gradation and re-development of low income localities are to be
undertaken in accordance with environmental protections. Additionally the new housing
schemes must support structures aligned to the cultural heritage of the province and to the
climatic conditions and environmental safeguards.
vi. There is emphasis on restoration of the rangelands and stock water for sustainable nourishment
of livestock as part of rangeland development program.
vii. Additionally, under this component two dedicated interventions are proposed namely
a)plantation of mangroves on the coastline in collaboration with international organizations for
conserving coastal bio diversity, mitigation of hazards and to encourage breeding of shrimp, crab
and fish in the region and b) a dedicated Resource Management program again in collaboration
with international donor assistance for managing the resource endowments on sustainable basis
and conserving the rich bio diversity in the province especially rangelands and coastal
environment.
ix. Support information dissemination and advocacy for the Balochistan Environmental
Conservation Strategy, and develop simplified guidance notes for distribution in schools and
women's clubs.
Table 9C: Environment (Rs. in million)

Capacity Development of
1
Environment Dept.
50 60 120 230 110
2 Resource Management Program 600 600 1,300 2,500 1,875
3 Development of Mangroves 956 954 1,508 3,418 1,709
4
Schemes
200 - - 200 -
Total 1,806 1,614 2,928 6,348 3,694
9.4 Disaster Preparedness
9.4.1 Balochistan’s vulnerability to disasters both natural as well as man- made is probably more intense
than other provinces in Pakistan given its specific geo physical characteristics coupled with
demography. Last few years of natural disasters especially the torrential floods and rains induced by
increasing climatic changes have exposed the vulnerabilities further. Being an arid region the
province has faced cyclic droughts for many decades and also floods and cyclones have been a
recurring phenomenon here. Despite these susceptibilities, it is only in last few years that the
federal and provincial governments in Pakistan have begun to accord serious thinking to the
disaster preparedness.
9.4.2 GoB has by now established a Provincial Disaster Management Authority and has also finalized
Disaster Risk Management Plan (PDRMP). With the collaboration of donors, some districts like
Gwadar have also prepared a District Disaster Risk Management Plan for mapping out disaster
vulnerable populations and other linked information. The PDRMP is a living document which will
require adjustments as the implementation proceeds. It puts together a plan which identifies the
major challenges; core thematic areas and response to them. Some core challenges which are
endemic to different types of emergencies are:

 Lack of general awareness about importance of preparedness
 Lack of resources; poor logistics; weak links, capacity at the grass root levels to implement
mitigation programs
 Lack of coordination among development, relief and other departments
 Lack of early warning systems and weak capacity of emergency services
9.4.3 Based on the systematic challenges faced by the province relating to disasters, some of the critical
ingredients required for better preparedness are listed below. Some of these relating to Rangeland
development; development of mangroves along the coast, watershed management have been
identified in the relevant sector strategies.
i. Strengthening the PDMA with adequate manpower, system development and equipping it with
important equipment and machinery
ii. Establishing Early Warning mechanism in collaboration with MET and other federal agencies
including regular weather updates and developing Information Dissemination System for
coastal communities.
iii. Evolving a long term coastal protection programs including gradual built up of mangroves
other cyclone mitigating natural resources.
iv. Making required investments in flood harvesting through development of storages, and
moving towards more responsible water management at river basin level.
v. Undertaking a comprehensive Rangeland Development and Drought Mitigation Program
including greater forestation in the province
Table 9D: Disaster Management (Rs. in million)

Sr. Strategy FY1, FY3, FY4 FY5, FY6, Total Proposed FA
No FY2 FY7 Portion
Institutional Development of
1 36 25 40 101 101
PDMA
Equipment for Disaster
2 200 400 600 1,200 -
Preparedness
Endowment For Disaster
3 200 400 900 1,500 -
Management
Total 436 825 1,540 2,801 101

10
Implementation of
Balochistan Comprehensive
Development Strategy

10. Implementation of BCDS
Government of Balochistan plans to accord priority to the implementation arrangements for BCDS in
order to ensure that the strategy is put on ground with full preparation and institutional arrangements. The
strategy will be treated as a living document and will be reviewed and updated as the implementation
proceeds in order to keep it reasonably flexible without compromising the overall strategy spirit and its
major features. In terms of implementation, an overarching Program Monitoring & Coordination Unit
(PMCU) will be established in P&D department with the mandate to coordinate and undertake monitoring
and evaluation of the implementation and its impacts. Under the strategy most of the M&E units of major
departments have been proposed to be strengthened. As such the departmental M&E Units will be
responsible for implementation of the relevant components of the strategy.
10.1 Fiscal Projection
10.1.1 The provincial resource picture has improved subsequent to the last NFC Award both on account
of increase in the provincial share in the divisible pool as well as due to change in the distribution
criteria amongst the provinces from population based formula to a multi-criteria formula. This has
resulted in a significant improvement in provincial revenues. In post NFC period, Federal Tax
Assignment has increased at the average annual growth rate of 14%; the straight transfers’
revenues have somewhat remained static and there is commitment to transfer Rs. 12 billion
annually on account of past arrears of natural gas royalties and surcharge under the Aghaz-e
Haqooq-e Balochistan.
Table F.3 Balochistan’s Revenue Projections (Rs. in millions)

Rev Budget Projections 2013-14 to 2019-20
Budget
2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
Federal Tax 114,206 123,274 136,834 151,886 168,594 187,139 207,724 230,574
Straight 16,310 18,706 20,015 21,416 22,915 24,519 26,236 28,072
Transfers plus
GST on Services
Non Dev. Grants 13,018 12,950 12,000 12,000 12,000 12,000 12,000 12,000
Provincial Own 5,398 6,468 7,120 7,845 8,653 9,551 10,552 11,668
Receipts’
Tax Receipts 1,217 1,551 1,613 1,677 1,744 1,814 1,887 1,962
Non-Tax 4,181 4,917 5,507 6,168 6,908 7,737 8,666 9,705
Total Receipts 154.330 167,866 183,089 200,992 220,814 242,760 267,065 293,981
Source: Undertaken on the Basis of Past Trends
10.1.2 Based on the allocations for 2012-13, the Revenue Projections of all major components of
revenues have been undertaken for next seven years. It may be seen from Fiscal Table F.3 that an
overriding portion of the current revenues approximately 80 to 84% comes from the Federal Tax
Assignment. The Federal Tax Assignment has been projected to increase at an average annual
growth rate of 11%. This will however be contingent to the federal tax revenues and also on the
next NFC Award after 2015.
10.1.3 The provincial own receipts together with straight transfers on account of oil and gas royalties and
surcharge presently constitute about 15% of current revenue and their share declines to 11% by
2020. Provincial own revenues show less elasticity for growth, whereas decline in the growth rate
of royalties and surcharge income is expected to decline unless there is increase in the volume of

Report Outline and Sectors Priority List
production of oil and gas or there is a revision in gas prices. The provincial non tax has been
projected to grow at 12% on the assumption that further progress on mineral development is likely
to yield better incomes and this can increase further depending on the growth in the sector. The
other provincial tax and non-tax revenues will only be able to reflect better growth after the
economy expands subsequent to major investments in the infrastructure and development of
human capital. The total provincial revenue is projected to grow from Rs. 149 billion in 2012-13 to
Rs. 282 billion in 2019-20.
Table F.4 Balochistan's Expenditure Projections (Rs. In million)

Rev
Budget Projected Salary & Non Salary Expenditure 2013-14-2019-20
Budget
HEADS 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20
Pay
28,982 33,329 38,329 44,078 50,690 58,293 67,037 77,093
Allowances
22,360 24,596 27,056 29,762 32,738 36,012 39,613 43,574
Pay/Allowances
51,342 57,925 65,385 73,840 83,428 94,305 106,650 120,667
Pension 8,500 8,500 9,350 10,285 11,314 12,445 13,689 15,058

Debt Servicing 2,272 2,100 2,310 2,541 2,795 3,074 3,381 3,720
Total Estab/Debt 62,114 68,525 77,045 86,666 97,536 109,824 123,720 139,445
Non salary 41,191 48,823 51,132 53,350 55,426 57,297 58,884 60,097
Current Exp 103,305 117,348 128,177 140,016 152,963 167,121 182,604 199,542
Development
33,198 39,932 47,793 53,132 59,199 66,089 73,907 82,771
Expenditure
Total Prov Exp 136,503 157,280 175,970 193,148 212,162 233,210 256,511 282,313
Source: Based on Past Trends(Note: slight calculation differences may arise, purely as a result of rounding off)
10.1.4On the expenditure side, the major expenditure is on account of pay and allowances which presently
constitutes 49% of the current revenue expenditure. This has been project to increase by 13%
annually (15% pay and 10%allowances) in view of the regular pay increases announced by the
government to cater to the inflation. The overall pay and allowances thus increases to constitute
54% of current revenue expenditure at the end of BCDS period. The pay & allowances together
with pension and debt servicing consumes approximately 60% of current revenue expenditure
which is projected to increase to about 68% by the year 2020. The provincial expenditure reflects a
significant space of around 40% for the non-salary operational expenditure, which is expected to
decrease however, is projected to be around 30% of the total current revenue expenditure. This is a
very comfortable space which the provincial government can utilize to improve operations. The
development spending presently constitutes 25% of the provincial expenditure and this has been
projected to grow and constitute 29% of the provincial total expenditure by 2020.
10.1.5 The total funds available to the provincial government in this period cumulatively for development
expenditure are Rs. 422 billion or about Rs. 60 billion annually. Further under non salary, there is
an amount of Rs. 385 billion in the period from 2013-14 till 2019-20. This can slightly shrink
depending on the cost of establishment i.e. in case the government undertakes higher employment
or in case there are salary rises beyond the regular 10 to 15% rises annually. However, the
provincial government can further enlarge the development kitty by shifting some funds from the
non-salary amount in order to undertake the high priority expenditures with greater flexibility.

10.2 BCDS Expenditure and Financing
10.2.1 The BCDS estimated expenditure totals to Rs. 588.8 billion for the period 2013 to 2020.
Components of the BCDS have been costed (in 2012 prices) and in many cases very detailed
costing has been undertaken to support preparation of PC-Is. A large part of the projected
expenditure Rs. 391 billion (66%) is for the capital expenses and remaining Rs. 197 billion (34%) is
for recurrent and revenue components. The revenue component is also for new expenditure as such
the total BCDS expenditure requires additional financing.
Table F.6; BCDS Expenditures (Rs. In million)

Sr Sectors FY1, FY2 FY3, FY4 FY5, FY6, FY7 Total Recurrent Development Proposed FA
No Portion
1 Governance 1,426 1,261 1,325 4,012 3,513 499 1,757
2 Security 6,468 5,621 8,794 20,883 14,152 6,731 3,697
3 Pro Poor Programs 6,000 7,870 12,040 25,910 20,910 5,000 6,500
3 School Education 22,835 30,033 35,802 88,670 55,571 33,098 53,970
4 Higher Education 5,990 5,370 8,159 19,519 12,192 7,327 4,406
5 Health 13,261 11,751 18,374 43,386 22,502 20,884 13,426
Religious Affairs &
6 400 700 900 2,000 1,700 300 -
Interfaith Harmony
7 Culture , Tourism 538 500 800 1,838 1,138 700 -
Social Welfare, Sports
8 425 730 1,040 2,195 1,100 1,095 -
, Youth affairs
9 Road & Transport 19,226 29,114 57,175 105,515 515 105,000 30,515
10 Irrigation Water 14,603 18,171 35,559 68,333 983 67,350 16,675
Water Supply &
11 4,586 4,678 8,020 17,284 1,334 15,950 6,950
Sanitation
12 Energy 5,659 7,300 7,558 20,518 200 20,318 600
13 Private Sector Dev 2,485 2,870 6,769 12,124 12,124 - 918
14 Agriculture 4,707 8,500 12,250 25,457 4,110 21,347 4,733
Livestock &
15 3,733 5,610 8,660 18,003 6,100 11,903 4,200
Rangeland
16 Fisheries 4,063 3,980 6,220 14,263 4,250 10,013 3,638
17 Trade & Industry 1,455 2,250 2,185 5,890 3,116 2,774 164
Minerals & Natural
18 8,298 10,939 17,017 36,254 2,374 33,880 5,531
Resources Dev.
19 Housing 5,700 6,406 10,523 22,628 5,078 17,550 385
20 Urbanization 4,891 3,618 6,584 15,093 3,032 12,061 816
21 Cross Cutting; Gender 845 1020 2300 4,165 4,030 135 2,310
22 Cross Cutting; ICT 1282 1282 3173 5,737 0 5737 1,018
Cross Cutting;
23 1,806 1,614 2,928 6,348 - 6,348 3,694
Environment
24 Cross Cutting Disaster
436 825 1,540 2,801 1,301 1,500 101
Management
Total 141,118 172,013 275,695 588,826 181,325 407,500 166,004
Share of Each
24% 29% 47% 31% 69% 28%
Component
10.2.2Against this estimated expenditure of Rs. 588.8 billion, an amount of Rs. 422 billion i.e. 72% has
been projected to be available from the provincial own resources through provincial development

portfolio for this 7- year period based on the revenue and expenditure projections in the Fiscal
Tables F.3 and F.4 above. There will thus be a shortfall of Rs. 166 billion (28% of total BCDS
expenditure) in the strategy period. The provincial own financing can however increase slightly by
way of diverting funds from the non-salary side without compromising on the essential operation
costs.
10.2.3 The overall assessment for required donor financing comes to Rs. 166 billion (USD 1.66 billion)
which calculates to roughly USD 237 million per year. In terms of phasing, there is a major
shortfall in the initial four years of the strategy as at this time the need for financing is greater
compared to the expected revenues. Expenditures are higher as the infrastructure development for
schools, health facilities, roads, and water storages is required largely at the beginning. Also the
strategy envisages to finance the throw forward of existing schemes in the period so that there are
no further cost escalations and benefits begin to flow. It is in this background that the requirement
for donor assistance is almost USD 1.1 billion in the first four years of the strategy requiring about
USD 282 million every year for FY 2013-14 till FY16-17 (Table F.7). Subsequently for the last
three years, total donor financing requirement is USD 529 million or USD 176 million annually.
Table F.7: BCDS Sources of Funding (Rs. In million)

FY1, FY2 FY3, FY4 FY5, FY6, Total
FY7
BCDS Expenditure 141,118 172,014 275,695 588,828
Provincial Own Resources 87,725 112,331 222,767 422,824
Proposed Foreign Assistance 53,393 59,682 52,928 166,004
USD million 534 597 529 1,660
10.2.4 A large part of the donor financing is expected to be from the multilateral aid agencies such as the
World Bank and ADB, etc. However, there is a considerable scope for attracting grant financing
from different countries ODA component such as the DFID, US AID, AUS AID, etc. All this
however will depend on show casing a strong resolve for reforms and a very robust and
transparent implementation mechanism which inspires the confidence of international donors.
Other than the support for investments, there are many prospects for seeking technical assistance
from Aid Agencies and Balochistan requires considerable assistance under this particular
component as delineated under each sector strategy for enabling the implementing departments to
be able to raise their capacity, systems and undertake the required feasibilities, master plans,
designs etc. for a more efficient implementation.
10.2.5 There is ample scope for attracting Foreign Direct Investment in a range of sectors under the
strategy. This is expected to be contingent upon improving the security as well as the investment
environment in the province. Hence, initially a large part of the investments have to be undertaken
by the GoB itself through own resources as well through borrowings and grant financing to be able
to create an environment which can attract international and national companies to invest in the
province.
10.3 Risk Management
10.3.1 Some of the major risks to BCDS and their mitigation and management are reflected below:

Major Risks Risk Handling and Mitigation
1 Internal Security will continue to pose major threat to the implementation of BCDS.
Security However the strategy has been designed in a manner that it can be carried
forward even under low to medium conflict scenario. For instance:
i. Pro poor programs relating to stipend based trainings are planned to be
organized in institutions both inside as well as outside Balochistan and
as such can be carried forward
ii. A large part of investments under Water Sector, Roads, Agriculture,
Livestock, Fisheries; Environment and ICT all relate to benefits at the
gross root levels and are likely to create buy in. Further there are over
30,000 public sector jobs which are being created together with
livelihoods for more than 2 million people.
iii. Under social sectors, strategy emphasizes on alternative delivery
mechanisms to create multiple players especially through communities
and local private sector. This too is likely to create ownership and
performance.
iv. Considerable resources have been allocated for improving policing,
such as for modernizing both intelligence, prosecution and creating
special force for combating terrorism and other threats to security of
the general population
2. Political Political instability and break down of civilian rule can be highly disruptive
Instability for BCDS. The strategy is pillared on the peoples’ participation and
participation of private sector as an integral component of governance and
accountability. In case of a major political upheaval, it will be an uphill task
to carry the strategy forward.
There are great expectations from the new Government are a very long time.
If these expectations are not properly managed, these could be the undoing of
the “common man’s government”. This could trigger violence as a result of
unfulfilled expectations. The Communication Strategy would be accordingly
key in managing the peoples’ expectations.
3. Federal The Fiscal Revenue Projections have been kept quite conservative with a
Revenue view to get the strategy moving even under low revenue scenario.
Shortages Approximately 28% of BCDS expenditures are proposed to be financed
through Foreign Assistance, hence a decrease of federal tax revenue by few
percentage points say 10% or so can be absorbed by slightly decreasing some
components, it can met by shrinking non salary expenditures and keeping
costs of establishment under control.
4. Delay in It is extremely important to negotiate Foreign Aid upfront of BCDS
Availability of implementation. BCDS hinges on not just the financial support of donors but
Foreign also the technical assistance and leveraging of reforms and difficult actions.
Assistance The Provincial Government’s seriousness to implement reforms is likely to
divert a sizeable amount of Foreign Assistance towards Balochistan. The
challenge will be to create institutional mechanisms which can implement the
strategy in its true essence.
5. Weak Weak Implementation also poses serious risks for BCDS. This can be
Implementation overcome through political resolve. Here the key is to identify a critical mass
and Slow of civil servants who can deliver. It is important to create adequate motivation
Results for Implementation of BCDS to overcome capacity shortages. Once a core

Major Risks Risk Handling and Mitigation
team has been identified then political ownership; appropriate oversight,
accountability, right incentives and motivation are likely to help overcome
many implementation barriers.
A large part of corrections can be ensured by a genuine involvement of the

communities; the real stakeholders in the decision making and
implementation. This involvement and private sector participation will remain
critical for efficiency, effectiveness and genuine reach out to the target
beneficiaries
Further, Balochistan needs major industrial and commercial enterprises in the

extractive industries, agriculture and manufacturing. Quite often, however,
these industries require technical skills and expertise that may not be
available in the province for some years to come. Further, these industries
may not be labor-intensive thus resulting in a growing economy that does
not create jobs. As has been observed in other countries, this could be a
major source of tension between the commercial and the government of the
one hand, and the unemployed – especially the youth – on the other. This
scenario can only be managed by a very robust implementation of the strategy
recommendations under the mineral sector where there is clear emphasis on
undertaking upfront capacity development measures for various components
and stakeholders.
6. Drought/ The risks pertaining to natural calamities can be mitigated to a large extent by
Natural according priority to water management strategy as this entails solutions both
Disasters for droughts as well as floods. The resource management, coastal re
vegetation, rangeland development are also strong components within BCDS
which can contain the cyclic and most predicted natural disasters to large
extent. Further strengthening of PDMA and its resources will also create a
better preparedness against natural and other calamites.
10.4 Monitoring, Evaluation & Reporting
10.4.1 The BCDS Implementation Unit in the P& D Department is proposed to be the lead coordinating,
oversight and reporting agency for the BCDS. The Implementation will be undertaken by the line
departments through their regular mechanisms however, the M&E units will be responsible at the
department level to further coordinate with the implementing tiers, oversee department level
implementation and report to the overarching PMCU in the P&D Department. The donor
coordination for BCDS will be undertaken by the Foreign Aid section in P&D Department.
10.4.2 A well designed software will be developed for reporting various components of the
implementation from expenditures; physical progress and grass root level reach out etc. through
adequate monitoring indicators. The PMU will also undertake regular Third Party Evaluations,
Impact Assessments and Monitoring for ensuring that the efficacy of the program is not just being
measured on the basis of physical and financial progress but also on the basis of impacts. In order
to make this assessment meaningful, the PMU may undertake baseline surveys for various
important interventions. PMCU would be provided with adequate manpower, systems and
empowerment to be able to undertake this task appropriately. It would maintain an updated
website containing progress reports including budget releases and expenditures; data bases;
surveys; TPVs etc. for a holistic oversight mechanism.

10.4.3 With a view to accord a high level ownership and create required momentum and motivation, the
PMCU may report to a cabinet committee under the Chief Minister on quarterly basis. It is
important that great focus be made towards the ownership of the BCDS by all stakeholders – be
it government, civil society, business community or political parties. Most important, however, is
the ownership by the incoming Cabinet. Very strong and continuing engagement is highly
recommended – particularly with the MPAs, the Cabinet and the Chief Minister. The early
establishment of the PMCU and the Balochistan Communication Strategy would greatly assist the
continuing ownership.
10.4.4 The overall success of the strategy will be measured on the basis of overarching Monitoring
Indicators that broadly put across the status of Balochistan in terms of poverty, basic health,
education, water supply, sanitation, GPI and other indicators. Of these, the most overarching
indicator which will reflect the achievements of this strategy will be the Multi-dimensional
Poverty with the target to reduce this by half from the present 52% to 25% by the year 2020.
Table M.1:BCDS Monitoring Indicators

Sr. No. Indicators Existing 2016-17 2020-21
1 Poverty (Multidimensional) 52% 45% 25%
2 NER Primary (6-10) 56 60 70
3 NER Middle (11-13) 25 35 50
4 NER Secondary (14-15) 14 25 35
5 Gender Parity Index Primary 0.58 0.65 0.8
6 Coverage of overall Immunization 45% 60% 80%
7 Infant Mortality per 1000 live births 72 65 45
8 U5 Mortality per 1000 live births 89 75 55
9 Skilled Attendant at Delivery 29% 60% 80%
10 Piped Water Supply inside Houses 21% 30% 60%
11 Rural Sanitation (No System) 23% 15% 5%
12 Houses with unsafe roofs 20% 10% 5%

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1 | Balochistan Comprehensive Development Strategy | 2013 -2020

2 | Balochistan Comprehensive Development Strategy | 2013 -2020

Chief Minister Balochistan

3 | Balochistan Comprehensive Development Strategy | 2013 -2020

Additional Chief Secretary (Development)

4 | Balochistan Comprehensive Development Strategy | 2013 -2020

5 | Balochistan Comprehensive Development Strategy | 2013 -2020

GoB Government of Balochistan QDA Quetta Development Authority

HEC Higher Education Commission SIZ Special Industrial Zone

HIE Hub Industrial Estate SLO Students Learning Outcomes

HMIS Health Management Information System SML Saindak Metals Limited

IUCN International Union for Conservation of Nature UN United Nations

MDB Mineral Development Board WFP World Food Program

6 | Balochistan Comprehensive Development Strategy | 2013 -2020

2. Balochistan; Polity and State of Development 23

2.1 History and Polity 24

3. Governance, Security and Sustainability 33

4. Social Safety Nets and Pro- poor Initiatives; Upfront 41

4.1 Evolving Stipend Based Skill Development Program 42

5.1 Education Sector 48

6.1 Roads & Transport 73

7 | Balochistan Comprehensive Development Strategy | 2013 -2020

7.1 Private Sector Development and Financial Intermediation 91

8. Urban Development 130

8.1 Investing in Cities for Creating Growth Poles 131

9. Cross Cutting Sectors 141

9.1 Gender 142

10. Implementation of BCDS 148

10.1 Fiscal Projection 149

8 | Balochistan Comprehensive Development Strategy | 2013 -2020

Table 3A: Governance 37

9 | Balochistan Comprehensive Development Strategy | 2013 -2020

Table F.1: Balochistan Revenue Post NFC 2010-2013 31

Fig: 2.1: Province wise Incidence of Multi-Dimensional poverty 28

Box 3.1: Bihar’s Governance experience 33

10 | Balochistan Comprehensive Development Strategy | 2013 -2020

11 | Balochistan Comprehensive Development Strategy | 2013 -2020

 Strengthening the democratic institutions through conscious, systematic and organized

12 | Balochistan Comprehensive Development Strategy | 2013 -2020

1. The Comprehensive Development Strategy (2013-2020) is the planning of the Government of

13 | Balochistan Comprehensive Development Strategy | 2013 -2020

14 | Balochistan Comprehensive Development Strategy | 2013 -2020

15 | Balochistan Comprehensive Development Strategy | 2013 -2020

Table F.1: Balochistan Revenue Post 7thNFC (2010-2013) (Rs. in Million)

16 | Balochistan Comprehensive Development Strategy | 2013 -2020

Table F.3: Balochistan’s Revenue Projections (Rs. in millions)

Table F.4: Balochistan's Expenditure Projections (Rs. in million)

17 | Balochistan Comprehensive Development Strategy | 2013 -2020

Table F.5: Summary of BCDS Expenditures (Rs. in million)

18 | Balochistan Comprehensive Development Strategy | 2013 -2020

Table F.7: BCDS Source of Funding (Rs. in million)

Table M.1: BCDS Monitoring Indicators

19 | Balochistan Comprehensive Development Strategy | 2013 -2020

20 | Balochistan Comprehensive Development Strategy | 2013 -2020

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22 | Balochistan Comprehensive Development Strategy | 2013 -2020

23 | Balochistan Comprehensive Development Strategy | 2013 -2020

24 | Balochistan Comprehensive Development Strategy | 2013 -2020

2.2.1 Balochistan’s geography and demography

25 | Balochistan Comprehensive Development Strategy | 2013 -2020

2.3 Growth and Structural impediments

26 | Balochistan Comprehensive Development Strategy | 2013 -2020

Table 2.1: Estimates of Structural Changes in Balochistan GPP overFY00 to FY11