FDI and Balochistan

31 Mar, 2013

The apathy of the successive governments has contributed to the shying away of foreign investors. Furthermore, the deteriorated security and uncertain and ever frequently changing government policies are a huge disincentive to FDI prospects. This inherent problem prevails.
Although quite rich in minerals, Balochistan is arid and where there is water there is no land and where there is land there is no water for agriculture. Due to the backwardness, there is hardly any commercial activity and therefore the highest unemployment rate in the country and a lowest per capita income leading to the prevailing disturbances in that province. Most of its northern belt from East to West falls within the Tethyan Metallogenic Arc that stretches from Turkey travelling through District Chaghi, Zhob, and Waziristan and reaching the Himalayan foothills being rich in mineral resources.
It is a proven fact that those pockets in Balochistan that have progressed in terms of employment and economic activity and can be seen that these pockets are comparatively much less volatile ie District Chaghi, Wadh, Muslim Bagh, Loralai, Zhob, Killa Saifullah, Lasbella etc. The solution to volatility is not necessarily through the barrel of the gun but rather encouraging the economic wheel to turn in a wider area to bring prosperity and employment and therefore a better standard of living and commercial interests.
I hereby feel compelled to say that local companies that somehow manage to sign MoUs with foreign companies to opt for investing in the mineral sector in Balochistan in the face of all odds. Such foreign companies before entering into any formal agreements, desire their representatives to visit the areas of their interest, specially relating to mineral resources but are either barred or restricted to visit the potential areas.
Instead of the task made easier, it is tried to make it as difficult as possible for the foreign companies and therefore an eventual fate where such companies shy away and go else where in the wide world where there are no major security issues and government policy intricacies. It is difficult to understand the aims of those who discourage and restrict foreign investment coming into Balochistan being instrumental in deprivation of the province to persist till eternity.

Read Comments