BY JAVED MAHMOOD
LAHORE - Asian Development Bank is providing technical assistance to study the economic impact of mega projects in Balochistan, including Gwadar, it is learnt on Wednesday.
According to ADB plan, the technical experts will review the impact of the Gawadar port development and other mega infrastructure projects on the provincial economy of Balochistan. They will assess the potential of Gwadar to become a
regional trade and investment hub; identify profitable avenues for cross-border trade and recommend policies to facilitate and develop exports; propose measures to support the creation of markets and export avenues for the minerals, fisheries, livestock, and other key sectors; and develop a strategy for the use of Gawadar and supporting transport infrastructure for participatory and cohesive development in the local and provincial economy. The bank would provide 0.375 million dollars as technical assistance.
ADB has pointed out that the government is investing a very large amount to develop Gawadar port into a strategic economic hub. The geographic location of the port makes it an ideal gateway to Afghanistan and the landlocked Central Asian republics.
Other major infrastructure projects are also being planned, among them, the 533 km Mekran coastal highway and Rs 3.8 billion investments in roads, railway extension, and similar projects.
Such projects, if integrated with provincial economic policy, can stimulate economic
activity and generate growth and employment in the province. The government of Balochistan realizes that, without a sound assessment of the provincial economy, it is difficult to monitor the progress of current programs or to design new ones. Balochistan is one of two provinces in Pakistan (the other is Punjab)7 where ADB has developed a comprehensive assistance program that includes key governance initiatives.
The BRMP is the most comprehensive public resource management program to be implemented in the province. Similarly, the upcoming Balochistan Devolved Social Services Program will address social sector development issues in the rural areas, and the Balochistan Water Resources and Rural Infrastructure Development Project to be processed in 2006 will deal with poverty alleviation and improving rural livelihoods. Given ADB’s focus on this least developed of Pakistan’s provinces, there is an urgent need for ADB to support the development of an accurate picture of Balochistan’s economy and social sectors and to improve the basis for policy formulation in the province.
The desired impact of the TA is to improve policy formulation in Balochistan by providing a cohesive strategy for stimulating economic activity and accelerating growth and development.
The TA will primarily support technical studies, facilitate policy dialogue, and assist the government of Balochistan in organizing the annual Balochistan Development Forum (BDF) in April 2006 and March 2007. The envisioned economic report will provide statistical and analytical insights into the provincial economy. At the request of the government, the social, productive, and infrastructure sectors will be covered. A database of economic statistics and social sector indicators on Balochistan will be created, and the provincial gross domestic product will be calculated.
The intermediate output will be the BDF in April 2006, where a policy vision paper stating Balochistan’s immediate and medium-term economic development goals will be presented. The paper will be based on an analysis of economic and human development trends and a preliminary estimate of provincial accounts.
The final output of the TA will be the BER, to be presented at the BDF in March 2007. In summary, the TA will provide the necessary resources and expertise to assist the government of Balochistan in (i) developing a social and economic statistics database, including estimates of provincial output; (ii) designing a provincial economic development strategy; and (iii) facilitating policy dialogue among the federal and provincial governments, business and civil society, and donors.
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