November 6, 2009 - Balochistan is the largest province in Pakistan. It is generously bestowed with natural resources that provide vast rangeland for cattle and other livestock. Its southern border makes up about two-thirds of the national coastline, giving access to a large pool of fishery resources. The province is ideally situated for trade with Iran, Afghanistan, Central Asia and the Persian Gulf countries. Over the last four decades, the province supplied cheap natural gas to Pakistan's economic centers, supporting the country's industrialization.
This report offers an empirical analysis of economic development and the ways in which the provincial and federal governments can help to foster it.
The report focuses on three topics:
• Stock taking of economic outcomes over the last decades;
• Strategies for inclusive economic development and financing for development in the future, and
• Instruments required for economic policies to bring about the required changes.
The report, subsequently, offers five main findings for Balochistan's development.
First, Balochistan stands to gain from provincial and federal reforms in the areas of energy and trade. The strong performance of the national economy in the last 10 years presents a unique opportunity to move Balochistan from a lagging to leading province.
Second, in order to overcome the development challenges, the province should pursue an agenda around generating growth, delivering services, and financing development.
Third, generating growth requires leveraging Balochistan's geographical location and natural resource advantages.
Fourth, delivering services depends on improving the public administration and scaling-up of basic services with public-private partnerships.
Finally, financing development relies on a prudent management of provincial expenditures, strengthening the capacity for revenue collection, and advancing fiscal devolution.
Volume I: Summary Report (pdf)
Volume II: Full Report (pdf)