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Higher funds for uplift of Balochistan demanded

By Saleem Shahid 

Special incentives for the cities of Balochistan are required so that they could match the Reconstruction Opportunity Zones being developed by the US and Europe. - File photo of an aerial view of Gwadar

QUETTA: Balochistan Economic Forum President Sardar Shaukat Popalzai urged the Federal government on Wednesday to give due attention to the underdeveloped economy of Balochistan in the forthcoming budget.

Talking to Dawn, he said different economic sectors be accommodated in the budget so that the province could shun its reliance on the federal divisible pool.

Many economic sectors, he said, were progressing slowly and were under severe pressure owing to lack of funding.

Due to slow growth of these sectors, investors were reluctant to come forward in supporting socio-economic development of the province, he said.

The federal government, he said, should encourage foreign direct investment in the province, and it should also be ensured that the message is reflected in bureaucratic policies and procedures.

He expressed the fears that the government may impose customs duty and sales tax on the ship-breaking industry in the new budget.

The present boom at the Gadani ship-breaking yard, he said, began early this year after customs duty and sales tax was waived in the previous budget which helped revive ship-breaking industry after a lull of over 10 years.

‘It generated economic activity in a big way and created employment opportunities from seashores of Balochistan to the North where most of the foundries and re-rolling mills are located, and it would be unfortunate if the federal government imposes customs duty and sales tax.’

He further mentioned that the fisheries sector was under continuous threat in the coastal area of Balochistan.

‘The main reason being the current ban on seafood export to Europe by the European Union for various technical reasons, which has badly affected the income generation of coastal population of the province,’ he said.

He further observed that mining and agriculture sectors, particularly fruit farming, have not been provided any special incentive, considering the fact that presently 67 per cent of Balochistan’s economy is dependent upon agriculture.

After the recent launch of operational activities at the Gwadar port, the forum expects that the government would announce without any further delay special incentives in declaring Gwadar a free zone.

The Balochistan Economic Forum also observed that the northern population of Balochistan was involved in large numbers in Afghan Transit Trade and also supporting the development of infra-structure in the province and Afghanistan.

The government should take notice of their migration of businesses from Balochistan area to the other region.

He demanded special incentives for the bordering cities of Balochistan, along with Afghanistan so that it could match the international incentives being offered for the Reconstruction Opportunity Zones (ROZ) being developed by the US and also supported by Europe.

DAWN: Thursday, 04 Jun, 2009