Whenever the word Balochistan is mentioned, the first things that come to mind are under development, deprivation, poverty, and frequently attacked by terrorists that leave fatalities in their wake. But is this all that the country’s largest province by area has to offer, or is there something else that is unexplored or underutilized?
Balochistan is at a vital geo-strategic location due to its borders with neighboring countries Afghanistan and Iran which lead to Central Asian countries, the Middle East and Europe. Not only is the land significant, but the province also has a more than 700 km long coastline that owns the strategic Gwadar port. The mineral potential of Balochistan is unmatched. According to the Geological Survey of Pakistan, Balochistan has more than 80 mineral resources with significant deposits. Some have been discovered, while most remain to wait to be explored. According to a report from the Geological Survey of Pakistan, in Balochistan, there are estimated reserves of 2.5 billion tons of dimensional stones which are of reasonable price. Whenever the stones are exported from Pakistan, 90% of them come from Balochistan.
Minerals such as coal, sulphur, chromite, iron ore, barytes, marble, quartzite, and limestone are all found in abundance in the province. Balochistan is rich in marble reserves whose quantity is unmatched in the world. There are marble reserves in several areas, including Loralai Khuzdar, Chaghi and Lasbella. Balochistan Government started a project to build marble cities in certain areas as a trial project, however regrettably the idea could not be materialized. Rekodiq, a copper and gold resource in the Chaghi District of Balochistan, is one of the greatest. Rekodiq has always been hailed as a game-changer; in the past, the country was imposed a $6 billion fine for terminating the Rekodiq agreement, but the most recent agreement with Barrick Gold Corporation offers a glimmer of hope because it provides the province with an almost 40% profit share, land and lease equity, CSR, and 8 thousand job opportunities when the project will be fully operational. This project will spend $8 billion in the country, primarily in Balochistan.
Natural gas was discovered in the Sui area of Dera Bugti in 1953. Since then, Balochistan has supplied gas to all of Pakistan, but the declining Sui reserves have primarily been a source of concern. In addition to Sui, gas reserves were also discovered in Kohlu and Kalat, but they haven’t yet been explored. If discovered and used these resources will supply natural gas to huge areas of Balochistan which are currently devoid of it. This may also help to ease the demand for imports by cutting the amount of LNG coming in from other countries. The province is also endowed with untapped oil reserves that, if found, will enable the country to achieve oil independence.
Natural resources are essential to the economy of any country. They can be a game changer in the exponential growth of the area in specific and the country at large. Unfortunately, the mining and mineral potential of Balochistan is underutilized. Due to a lack of government oversight, the mining and minerals sector has never been developed and lacks facilities such as roads, infrastructure networks, energy resources and water supply. A key part is the lack of a modern and investor-friendly legal framework that could attract a large number of investors. There have been instances in the past where poor agreements have led to the exploitation of natural resources, and this is one of the major concerns of key state stakeholders. With no mining facilities and no access to modern equipment, precious resources are wasted. The general observation is that governments and bureaucrats have not made any particular effort in this very important area and that improvements to the legal framework have recently begun, but like any other issue, this does not seem to be a current priority, for the moment. Due to the lack of factories, much of the raw material is exported at low prices. Last but not the least, the state’s poor law and order situation is one of the main reasons for the low private investor interest in the state’s mining and minerals sector.
If we look rationally a resource-rich province, has been experiencing a disappointing growth rate, widespread poverty, and bad governance. In Balochistan, the challenge of managing natural resources is often said to have turned a blessing into a curse.
Natural resources are valuable because they can be extracted to produce goods and services. Mining is an important economic sector in many developed countries. If the government gives proper attention and supervision to the mining sector, it can have a positive impact on Pakistan’s economy.