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Balochistan Development Gateway

Government focusing on Balochistan's uplift: Prime Minister

ISLAMABAD (December 29 2006): Prime Minister Shaukat Aziz has said that the government was focusing on development of Balochistan and numerous projects were underway to bring about a meaningful change in the lives of the common man.

The Prime Minister while talking to Chief Minister Balochistan Jam Mohammad Yousuf, said in addition to mega development projects, the government has also undertaken several public welfare schemes to provide health, education, electricity and clean drinking water to the people.

The Prime Minister said Balochistan has immense potential in tourism, fisheries, livestock, agriculture, oil and gas, and minerals and mining sectors. Adding he said that serious efforts are being made to exploit the relatively untapped potential of the province in these sectors. He said the coastal belt is being developed which will provide better economic opportunities to the people living in these areas.

The Prime Minister said that the government is particularly focusing on improving the communication network in the province so that maximum benefit can be achieved from the seven new trade gateways that have been established along the borders with Iran and Afghanistan. He said 35 percent of National Highway Authority's budget is being spent on building a network of roads and highways in Balochistan.

The Prime Minister said that enthusiastic participation of thousands of people from all parts of Balochistan in the public meeting addressed by President General Pervez Musharraf in Quetta early this month shows that development process initiated by the government enjoys enormous support in the province.

Chief Minister Balochistan appreciated the recent package announced by the President and the recent announcement by the federal government regarding providing internship opportunity to 2000 educated youth of the province under the National Internship Programme.

He also said the people are grateful for the increased employment opportunities being provided to them not only in their own province but also at the federal level.

Jam Mohammad Yousuf told the Prime Minister that Balochistan government is working for the provision of drinking water in the province. He said that so far 285 small dams have been completed in various parts of the province while work on another 200 dams is underlay.

He informed the Prime Minister that PML's enrolment drive in the province is going apace and people have enthusiastically participated in party's centenary celebrations. Overall law and order situation in the province and reorganisation of PML also came under discussion during the meeting.

The Chief Minister briefed the Prime Minister on his visit to Chile and said that Chilean investors are positively looking at exploring for copper in Balochistan. Minister of State for Petroleum and Natural Resources Naseer Mengal was also present during the meeting.

http://www.brecorder.com/index.php?id=512395&currPageNo=1&query=&search=&term=&supDate=
 
Balochistan govt negotiates for 20pc stake in PPL

1 January 2007

ISLAMABAD — Balochistan government is currently negotiating with the Centre to acquire 20 per cent shareholding in Pakistan Petroleum Limited (PPL) and 25 per cent shares in all other concession licences of natural resources to ensure constant revenue stream to the resource rich starving province.

PPL alone is the country's oldest and largest exploration and production company with annual sales revenue touching Rs20 billion. It produces more than 300,000 million cubic feet of gas and more than 240,000 barrels of oil per year besides substantial annual production of condensate, liquefied petroleum gas and other minerals.

Governor Owais Ahmed Ghani said that he expected the mineral sector to be a major revenue generating source for the province on the longer run because of 25 per cent share in each mineral concession agreement the provincial government has been and will be signing with the private investors from home and abroad. The province has already been given a 25 per cent shareholding in Reko Diq mining area, whose value of copper and gold deposits are estimated to be over $70 billion at current market price. The Rekodiq mining area has proven estimated reserves of two billion tons of copper and 20 million ounces of gold. Copper and gold are currently traded at over $7000 per ton and $640 per ounce respectively. Remaining 75 per cent stakes of the project have now been taken over on 50:50 basis by Antofagasta of Chile and Barrick Gold of Canada.

Ghani said he had requested to the federal government to provide 20 per cent shareholding in PPL, which is the operator of Pakistan's oldest Sui Gas field. He said the major shareholding may go to the private sector as the centre planed to sell it but since it is a provincial resource and has been feeding the entire nation since independence, a shareholding would be of great help and justice to the province.

The provincial government, he said, has been discussing with the centre to ensure 20 per cent shares in the company along with a member on its board of directors to increase provincial revenue. Responding to a question on National Finance Commission and royalties on gas, he said the two issues were being "talked and discussed" with the federal government and "some important things are expected soon".

Governor Ghani said a number of international oil and gas companies were showing interest in Balochistan's untapped resources and the province would like to acquire shareholding in each petroleum concession agreement, since Balochistan's financial outcome from Sui field's royalty was on the decline.

Responding to another question Ghani said the provincial government was also in discussions with the federal government to retire its expensive cash development loans (CDLs) by taking cheap loans to improve its cash flow position and the Asian Development Bank (ADB) was coming forward on this account.

Separately, Balochistan has asked the federal government to reduce the number of federal corporations utilizing more than 33 per cent of country's total funds so that the poor but largest province could get its due share for development. A small Saindak Metals Limited is the only corporation out of total 208 autonomous bodies based in Balochistan, says Ghulam Muhayuddin Marri, chief economist planning in the provincial government. Marri said the Balochistan government had asked the federal government to extend sea coast jurisdiction from zero to 35 nautical miles to ensure much higher income from fishing. The federal government had taken over more than 63 per cent shares of PPL from Barmah Oil Company in 1997 to raise its ownership to about 94 per cent. Later, it decided to privatise the company but Balochistan assembly adopted a resolution asking the federal government to give its ownership to the province. The centre did not oblige this request then. Last year, the federal government reduced its share in the company by 15 per cent through initial public offering. Now, it plans to sell 51 per cent shares along with management control of the PPL.

Blochistan is currently in a classic debt trap — taking new loans to service old — as its overdraft touched highest ever Rs19 billion this month and interest repayments exceeded Rs250 million per month, arising out of the State Bank of Pakistan's overdraft (OD) and the federal government's cash development loans (CDL). It doles out about Rs3 billion every year in repayments.

http://www.khaleejtimes.com/Display...y/business_January3.xml&section=business&col=
 
Balochistan freezes uplift spending

Balochistan’s interest repayments have exceeded Rs250 million per month taking the overdraft to highest ever at Rs16 billion. The provincial government has been forced to freeze its current expenditure and development programme almost at the last year’s level. The province would now have to spend Rs3 billion per year in the shape of interest payments.

Balochistan is currently trapped in debt both emanating from the State Bank of Pakistan as overdraft and the federal government as cash development loan (CDL).

Prior to the announcement of the Budget 2006-07, the provincial government’s loans with the State Bank stood at Rs15 billion after interest payment of over Rs262.7 million. The centre’s principal CDL to the province currently stands at around Rs6 billion. The overdraft accumulated in financial years of 2003 and 2004 to Rs12 billion due to excessive borrowing for current expenditure and repayment of CDLs.

The province is returning loans at high rate interest. Yet, the pace of increase in the overdraft has been contained in the last couple of years. Its overdraft came down to Rs13.8 billion last year. It has now reached about Rs16 billion. This year, there was practically no increase in Rs5 billion current expenditure of the last year, except of about Rs37 million additional burden rising out of an increase in salaries announced by the federal government.

The CDLs carry about 17-18 per cent interest rates. Balochistan has yet not been allowed to repay its CDLs by cheap banking sector loans. Commercial banks are ready to lend money to provinces at lower mark-up rates.. Under the Constitution, the provinces cannot borrow directly from the banking sector without taking permission from the centre. The centre has acquired fiscal space by rescheduling its foreign debts and the same principle has not been applied to cash development loans to provide relief to the poorest province.

As there is no major revenue-yielding provincial tax , the province has to excessively depend upon the resources received from federal government through the NFC award. According to independent economists, Balochistan is most hard-hit by the interim NFC award. The new financial arrangement created a sharp north-south divide in Pakistan benefiting most the two provinces, the NWFP and the Punjab and making the two southern provinces Sindh and Balochistan more pauperized.

In the new NFC award, it was decided that no provincial nature of project will be financed or co-financed from the federal Public Sector Development Programme (PSDP) due to an increase in share of provinces from the Federal Divisible Pool.

For the fiscal year 2006-07, Balochistan is to set aside a major portion of its budget for repayment of interest and principal amounts of loans to the federal government, leaving limited fiscal space to fund its development programme or meet the current expenditures. Moreover, Balochistan has lost 2.5 per cent general sales tax (GST) distribution. The share of the GST now directly goes to the districts, compared with its last year share of about Rs18 billion.

The provincial Public Sector Development Programme (PSDP) has also been frozen at last year’s Rs7-8 billion, which actually means that development allocations have come down this year when seen in the context of general inflation and currency conversion rates.

There has been no progress on Balochistan’s dispute with the federal and Sindh governments over equitable distribution of royalty and gas development surcharge (GDS). The unresolved issue of sharing the GDS also deepened financial crisis in the province. The reduction in the province’s gas revenue, particularly the GDS for the current year has adversely affected the PSDP.

For the FY 2005-06, Balochistan was to get Rs5.3 billion from the GDS but it was revised down to Rs4.8 billion. However, for the current fiscal year, Balochistan received only Rs3.5 billion from the GDS. This reduction of Rs1.3 billion proved a serious blow to the financial health of the province. Islamabad had reportedly informed the Balochistan government about reduction in the GDS amount for this year.

There are billions of rupees in gas arrears that are outstanding against the federal government. The total revenue for the province should be around Rs14.647 billion keeping in view the wellhead prices of the three wells - Sui, Pir Koh and Loti.

According to an estimate, the GDS revenue payable by the Sui Northern Gas Pipeline Limited (SNGPL) from Sui (on the basis of well-head prices) alone is around Rs11.6 billion and from Loti and Pir Koh gas fields it is about Rs1.334 billion, a total of Rs12.927 billion. However, the revenue supposed to be paid to the government of Balochistan from the Sui Southern Gas Company Limited from Sui wells is around Rs1.72 billion. Ironically, while the federal government is arbitrarily subsidising the sale of natural gas from Balochistan to consumers in other provinces without its consent, the province is left with no funds to finance its annual development programme.

Balochistan has been in throes of financial crisis sincet got the provincial status in 1970. Even today, though the province is facing worst financial crisis, it has still been unable to recover Rs600 billion dues owed by the federal government on gas from Sui field and Rs9 billion in arrears from the Sindh government in connection with Hub water.

It could not get even its just share in gas development surcharge. Balochistan actually presents a classic example of a province on the country’s political periphery that is heavily dependent on the centre to meet its financial needs. Ironically, the outstanding dues against Balochistan are recovered by the centre promptly while the province’s outstanding dues against the centre and other provinces are not being paid.

The province has been managing its affairs on loans and subventions, and hopes and promises. Presently, it is hoped that a reasonable amount of royalty on gas that had been held up with the federal government for many years would be retrieved in a few weeks.

These receipts would hopefully reduce current account deficit of the province by over Rs1.5 billion. The provincial government is also expected to get two separate tranches of the Balochistan Resource Management Programme (BRMP) and the Devolved Social Sector Programme (DSSP) in the current year that would help reduce CDL by about Rs2 billion.

Similarly, Prime Minister Shaukat Aziz during his recent visit to Quetta announced a special package of Rs19.5 billion for Balochistan to help the provincial government overcome financial crisis and gear up the pace of development activities.

Merely loans, subventions and promises can not get the province out of its perennial financial problems. A sustainable strategy is needed to overcome the province’s financial crisis and to put it on the road to self-reliance.

As a first step in this direction, all Balochistan’s dues, which are outstanding against centre and other provinces, should immediately be paid to the province. The federal government should also consider writing off the Balochistan loans, as the province has been a calamity hit area for the past one decade due to the long spell of drought. It is bearing the high costs of maintaining law and order owing to the military operation currently underway in the province.

http://www.dawn.com/2007/01/01/ebr8.htm
 
Balochistan safe for foreign investment

QUETTA: Balochistan Governor Owais Ahmed Ghani has said the foreign investors are making huge investment in the province and the government is providing them with all possible security.

Talking to a delegation of Chinese company Xinjiang Construction Company and Xinang Fuyang Industry led by its head Huhanji, which called on him here on Tuesday, he said people of the province are pleased with the development activities of the federal government and that is why investment is increasing in Balochistan.

The governor said there is great potential in investment in Gwadar and many other sectors of Balochistan including oil and gas, fisheries, agriculture, mining, sea food and shrimp farming.

“Pakistan and China are enjoying longstanding cordial relations and vast cooperation is being exchanged between the two countries in various sectors including trade and economy,” he said, and added that efforts are still on to further strengthen these bilateral relations.

Huhanji informed the governor that his company represents 19 companies of China and they are keenly interested in investment in Balochistan. He also invited the governor to visit China besides presenting him a memorial shield.

http://www.thenews.com.pk/daily_detail.asp?id=38275
 
'Development projects worth Rs 2 trillion under way in Balochistan'

QUETTA (January 10 2007): Balochistan Chief Secretary K B Rind has said that development projects worth more than Rs 2 trillion were under execution in the province and timely completion of all these projects is the foremost responsibility of the government and all resources and energies would be mobilised for this purpose.

He expressed these views while presiding over a high level meeting about ongoing development projects under execution with federal government and foreign agencies collaboration in the province here on Monday.

Additional Chief Secretary Development, secretaries of the provincial departments and provincial heads of federal government departments attended the meeting.

Secretary Irrigation and power gave details of command area after the inauguration of Mirani Dam. About Subakzai dam he said that it is in the final stages of completion. He said 43 small canals were being built in the province and PC-I about Pat Feeder, Hair Din and Kirthar Canal have been prepared. Feasibility report about Ajram Dam would be ready by June this year. He said consultants have also been appointed for dams in Hingole, Nolang, Silkeji, Tanke, Zorati and Winder. Besides work on Chagai Water Project was underway at a cost of Rs 560 million.

Secretary Agriculture told the meeting that preliminaries have been completed for fishery, forests and livestock sector with foreign assistance. Besides work on Abiari, awareness programmes for people and Zamindars, agriculture training, wheat, water management unit was going on in five districts.

Secretary Education apprised the participants of pace of work on Middle School Projects with Japan Bank Assistance. He said that Balochistan Education Foundation in collaboration with World Bank was establishing 200 community schools in the province while there is a plan for setting up 100 private primary schools. Giving details about 7 new cadet colleges in the province he said funds have been released for Cadet Colleges Killa Saifullah, Jaffarabad and Panjgur after their approval and construction work has begun. He said PC-I for Cadet Colleges at Noshki, Gwadar, Kohlu and Sibi have been prepared and after approval work on these colleges would be undertaken. Chief Secretary on the occasion said that work on development projects worth more than Rs 200 billion was going in the province while provincial development projects are in addition to these projects. He directed for early completion of fly over in Quetta and fixed October 2007 as deadline for it besides removing hurdles in its way.

http://www.brecorder.com/index.php?id=515770&currPageNo=1&query=&search=&term=&supDate=
 
Thursday, January 18, 2007

Govt to bring Balochistan at par with other parts of country: PM

ISLAMABAD: Prime Minister Shaukat Aziz has said the federal government will use all its resources to improve the standard of living of the people of Balochistan and to bring the province at par with other parts of country. He expressed these views while talking to Balochistan Governor Owais Ahmad Ghani at his residence on Wednesday.

He said the government was developing a strong communication system in Balochistan which is essential for realising the full economic potential of the province. The prime minister said that the Gwadar port would serve as a trade corridor for the region, linking Balochistan with Afghanistan, Central Asia and China.

The prime minister said micro-development schemes have also been started all over the province to transfer the benefits of high economic growth to the masses. He said efforts were being made to explore the province’s potential in agriculture, livestock, fisheries, tourism, oil and gas, mining and minerals. The government will also develop the coastal belt to provide more opportunities to the people living in these areas, he said.

Governor Owais Ahmad Ghani updated the prime minister on the law and order situation and the status of federally funded projects in the Balochistan and other matters relating to the province. The prime minister hoped that with the completion of these projects more jobs would be created and a new era of progress and prosperity would start in the province.

http://www.dailytimes.com.pk/default.asp?page=2007\01\18\story_18-1-2007_pg7_21
 
Chinese drilling firms asked not to work in Balochistan

ISLAMABAD (January 27 2007): The Chinese embassy in Pakistan has barred its country's services companies from oil and gas exploration and production work in Balochistan for security reasons. This can adversely hit Pakistan's efforts to restart drilling activities in the province.

Chinese embassy's advisory put Pakistan Petroleum Limited (PPL) into limbo as after M/s Great Wall Drilling Company (GWDC) denial it's not finding any service company for securing rig to drill its Tangna Pusht 1 well in Balochistan.

Sources said the Chinese embassy's advisory to its country's oil and gas sector companies came under discussion at operator committee meeting (OCM) on October 25.

The OCM report made available to Business Recorder showed that PPL, the operator informed Mari Gas Company Limited (MGCL), Oil and Gas Development Company Limited (OGDCL) and Government Holdings (Pvt) Limited-the joint venture partners that Great Wall Drilling Company (GWDC), China and Schlumberger Inc were contacted for drilling at Tangna Pusht-1 well but they regretted to work in Balochistan due to security reasons.

The operator apprised the meeting about the prevailing overall security situation in Balochistan and gave briefing about the land mine incident of April 2, 2006.

It was informed that several meetings were held with the Governor, Home Secretary, Balochistan government and other provincial authorities including security agencies. In these meetings the security situation was assessed. The operator said that according to the new policy, security plan would be finalised with HQ FC Balochistan after NOC to commence operations in Balochistan was given by the government of Balochistan.

The operator also informed that it has already sent advance request to HQ FC regarding planned exploration activities in Dadhar block. Replying to a query, the operator informed the meeting that it was planning to meet IG FC Balochistan next week to discuss the modalities for security arrangements.

MGCL asked about the status of security contract and compensation to deceased levies/local guards and in its response the operator replied that security contract had been terminated and compensation was paid to the families of six security personnel killed during land mine incident.

The operator added that the land mines posed a major threat to safe operations. KUFPEC suggested that a private agency may be hired for mine clearing or a clause may be included in the contract of access/site construction for clearing the landmines.

The operator informed that no such agency was available in Pakistan and mine-sweeping would be done by the FC.

The operator informed the meeting that exploration licence for the block was valid up to September 18. Its representatives held a meeting with DGPC on August 24, to brief him about the hindrances in implementing the work programme which were beyond operator's control. The operator said that DGPC was requested for one-year extension in the contract.

The operator provided an overview of the work program, security situation and efforts made by it to restart to complete remaining work.

KUFPEC asked about operator's efforts to acquire Chinese rig from OGDCL as was mentioned in the last meeting. The operator informed that OGDCL had indicated that one Chinese rig was available for operation, but Chinese contractor refused to carry out operations in Balochistan.

The operator added that Chinese contractor informed that they have strict instructions from their embassy in Pakistan not to conduct any activity in Balochistan without its approval.

DGPC asked about the availability of other rigs.In its response operator informed that in the last technical committee meeting.the operator committee meeting (TCM/OCM) they invited proposal for rig through press tender and four contractors collected the bid documents, but only one contractor M/s Oil and Gas Engineering Company, SPA submitted the bid.

The operator added that even OGEC-SPA declined to provide the rig and operator forfeited their bid bond.

The operator told the meeting it also contacted overseas drilling contractors. A Gulf-based company showed interest, but it required for a long term contract at $29,000/day rental which was considered too costly and for the same it was not supported by the joint venture (JV) partners.

The operator informed that re-bidding of the services is recommended when it secures the rig, as Petroservices, an Egyptian company, the single bidder indicated to increase Its bid by 60 percent and requires letter of intent (LOI) before 31 December, 2OO6.

The operator informed that one bidder, MI Swaco, out of three has withdrawn its bid. It proposed for holding the existing bids valid as still the other two bidders agreed to their quoted prices.

The 0perator recommended accepting extension offer of Schlumberger Seaco bid rates, as Baker Atlas has wrapped up from Pakistan, the operator told the meeting that if the new bids were invited then Schlumberger would likely to increase the rates.

The operator informed the meeting that both bidders (Haliburton & Dowell Schlumberger) had declined to extend the validity of their offer. It proposed to invite new bids for cementing services, when it secure the rig or ask for financial bids from these two companies, when required.

The operator presented the status of access I site preparation for Tangna Pusht-1 well and informed that 40 percent of the planned work was completed before the tragic landmine incident on April 2, 2006. However, it was feared that recent heavy rains may have caused serious damage to the incomplete causeway in Bolan river and other construction. The operator recommended that after the landmine blast the construction team had to vacate the area in emergency and the site was left unattended. The meeting was informed that a site visit was planned as soon as security situation improves, to assess the damage of the construction work, estimate the volume of remaining work and sot time frame required to complete the work.

MGCL inquired about insurance cover for access / site, to which the operator replied that such projects were not insured but it may consider the case in the future. MGCL asked about the provision for acquiring land for more than one year and operator told the meeting that generally land was acquired for one year. MGCL observed that 40 percent of the planned work has been completed by the contractor but the payment made was more than 40 percent. The operator clarified that total payment made to the contractor was 28.736 million rupees which also included the reimbursement of material cost purchased by the contractor for site construction and this material had been stored at PPL site.

http://www.brecorder.com/index.php?id=522213&currPageNo=1&query=&search=&term=&supDate=
 
Tuesday, January 30, 2007

Project worth Rs 1.5b okayed for Balochistan

ISLAMABAD: The federal government has approved a Rs 1.5 billion mega project for the development of irrigation system in five districts of Balochistan.

According to details the project will benefit thousands of farmers in Quetta, Pishin, Killa Abdullah, Mastung and Kalat districts. The Central Development Working Party (CDWP) has discussed the project in detail on Saturday and gave its approval. The project will help in the uplift of agriculture in the area and alleviate poverty through improvement of scare water management with the help of latest techniques and know-how.

The project has been divided into three components including partial restoration of water storage capacity of bund Khushdil Khan (BKK) by raising by 2.2 meter its level, remodeling of its spillway, constructing a protective bund and repairing the head-works and outlet channel, an official told APP.

He said the project would help development and improvement of small scale irrigation schemes through lining of existing 15 channels and improvement of kareze storage ponds and rehabilitation of structures in flood protection schemes. Capacity building of the irrigation department, water management institution and farmers organization is also included.

He said Balochistan has two types of irrigation systems Indus gravity fed canals system that irrigates 230,000 hectors and small-scale irrigation covering about 320,000 hectors annually. Currently there are a total of 31,799 tubewells in the province. Of these 48 percent are electrically operated. He added that groundwater is the most precious essential water resource of Balochistan. The most important income generating activities, irrigated horticulture, domestic and industrial largely depend on groundwater, he said.

Giving details of the areas the official said that Pishin Lora Basin (PLB) is a major river basin in Balochistan (16,928 sq, km with 10 sub-basins) spread over 5 districts of Pishin, Killa, Abdullah, Quetta, Mastung, and Kalat with a total population of about 1.2 million.

He said that as in the rest of the province, drought has had severe impact on the livelihood pattern of the local population due to drying up of irrigation and potable (surface and ground) water resources, degradation of forests and rangelands, reduction in agriculture production.

http://www.dailytimes.com.pk/default.asp?page=2007\01\30\story_30-1-2007_pg5_10
 
i read that Singapore ports have won the deal to operate the Gwadar port.
 
Thats coorect Bull.

Neo said:
Gwadar port handing over to SPA approved

ISLAMABAD (January 24 2007): The government on Tuesday approved the handing over of the multi-billion dollars Gwadar port operations to Singapore Port Authority (SPA).

The approval was given by Prime Minister Shaukat Aziz while at a meeting of Policy Board on development of Gwadar port following the recommendations of Gwadar Port Implementation Authority (GPIA) and a special committee constituted to negotiate the agreement for operations of the port.

Balochistan Chief Minister Muhammad Yousaf, Defence Minister Sikandar Iqbal, Ports and Shipping Minister Babar Ghauri, Industries Minister Jehangir Tareen, Petroleum and Natural Resources Minister Amanullah Jadoon, Advisor to Prime Minister on Finance Dr Salman Shah and other senior officials attended the meeting.

The Prime Minister also gave approval to the master plan and business strategy to develop Gwadar as a port and industrial city. The meeting was given detailed briefing by Secretary, Ports and Shipping, Naheed Haider, who said that Gwadar port would be operationalised by the end of next March.

Furthermore, the meeting was informed that SPA, under the agreement, would invest $550 million for improvement of Gwadar Port, besides building additional berths. The Prime Minister said that Gwadar has the potential to become a regional maritime hub because of its geo-strategic location.

Gwadar port, he said, would emerge as national gateway and it would be a major port of the region to cater the needs of Pakistan and Central Asian States. He said that the 14.5 metres deep draft of the port would be able to attract up to 'Fifth Generation' ships, including Panamax and mother vessels. In addition to the location of Gwadar and the depth of the channel, low operations cost would provide competitive advantage to the Gwadar Port, he added.

For many reasons, the inauguration of the country's biggest seaport, that lies at the heart of President General Pervez Musharraf's vision of prosperity, has been rescheduled.

The Prime Minister said that the government had fulfilled another commitment with the people of Balochistan by completing the Gwadar port. The operationalisation of Gwadar port would usher in a new era of development and prosperity for the people of Balochistan, he remarked, and added that it would generate economic activity and a significant number of jobs.

He said he believed that free zones, which would be set up along the port, would contribute to the harnessing of Balochistan's potential in natural resources and development of heavy and large-scale industries, petrochemicals and manufacturing.

The Singapore Port Authority has vast experience in handling big ports, world-wide, and is fully capable to get good business for Pakistan by making the Gwadar port an attraction for big shipping lines.

The multi-billion dollars project is seen as a catalyst to give boost to the country's economy and it would serve as a centre for different corridors to help Pakistan meet its growing demand in various key areas and provide the shortest and viable route to the entire region for supply of energy and quick transportation of goods.

http://www.brecorder.com/index.php?i... rm=&supDate=

http://www.pakistaniforces.com/forums/showpost.php?p=45804&postcount=82
 
February 05, 2007
Irrigation schemes for Balochistan

By Syed Fazl-e-Haider

A Rs1.5 billion project for improving the irrigation system in five districts of Balochistan has been approved by the Central Development Working Party of the Planning Commission. The districts are Quetta, Pishin, Killa Abdullah, Mastung and Kalat.

The project is designed to improve small-scale irrigation schemes through lining of 15 existing channels and improvement of the traditional underground Karez storage ponds and rehabilitation of structures in flood protection schemes.

The key strategic choice made in the project is to formulate it as a part of a long-term framework (12-15 years) which would allow it to enforce and support adoption of basin approach for sustainable planning, development and management of water resources for agriculture.

The project has been divided into three components:1) partial restoration of water storage capacity of Khushdil Khan protective embankment by raising its level by 2.2 metres; 2) remodelling of its spillway; 3) constructing another protective embankment and repairing the headworks and outlet channel.

Balochistan is a water-starved province. The groundwater tables are on decline due to mismanagement of water resource. Besides streams, other sources are at the risk of over exploitation. Underground water channels locally known as Karezes are one of the oldest systems of irrigation here. In the year 2002, the government spent Rs 4 million to revive 100 Karezes. At least, 1186 other Karezes in different parts of the province are in dire need of repairs.

The most important use of water is for irrigation purposes in Balochistan. The extent of cropped areas with different types of irrigation are as follows:

Indus system: 285,300 hectares

Canal diversions: 60,160 hectares

Karez and springs: 44,700 hectares

Open wells: 17,430 hectares

Tube wells: 121,140 hectares.

Total: 529,180 hectares

Owing to the falling water table, studies show deficit in Quetta sub-basin is about 21,000 AF per year and that the aquifer storage will be exhausted in 20 years. Groundwater is depleting. in some places even with one meter per year, especially in the Pishin-Lora Basin. Zhob and Nari River basins are not available for further groundwater development.

Karezes as a tapping groundwater system has come under great stress, because of commissioning of a large number of deep tubewells in the valleys. These tubewells have been instrumental in causing ground water mining and lowering of the water table. The government has imposed a strict ban on the installation of tubewells in certain areas such as Quetta, Mastung, Mangochar, and Pishin.

A no-objection certificate is required prior to the installation of a tubewell. The three statutes dealing with different aspects of water use include Balochistan Groundwater Rights Administration Ordinance (1978); the Groundwater Ordinance XX (1980) and the Balochistan Water Users Association Ordinance (1981).

The province is blessed with extensive groundwater resource. The hydrological map of Pakistan shows that out of total three main hydrologic units, two are located in Balochistan. They are: Indus River basin, Kharan desert basin and Mekran coastal basin. The province can be divided into three hydrological regions: the Nari Basin, the Kharan Basin and the Mekran Coast. There are about 73 small or large rivers and streams constituting the three basins. Only about 30 per cent of this potential of rivers and streams is utilised through different schemes. A comprehensive investigation of all the basins is needed.

The Pishin-Lora Basin is a major river basin in Balochistan covering an area of 16,928 sq km with 10 sub-basins spread over five districts -- Pishin, Killa, Abdullah, Quetta, Mastung, and Kalat -- with a total population of about 1.2 million. Groundwater within the basin is currently being used at rates 2-3 times more than the recharge rate and exploitation has continued despite the situation being deemed critical almost a decade ago.

Investigations carried out before the drought showed that two out of 14 basins (Pishin-Lora and Nari) had been completely exhausted, while six out of the 12 remaining basins had used more than 80 per cent of their water resources. In other basins, the water table was falling rapidly. The situation had been exacerbated during the recent drought through a combination of continued over-mining of depleted aquifers and insignificant recharge. It showed there was an urgent need to undertake measures to rejuvenate depleting aquifers.

A local farmer of Jaffarabad district told this scribe that water scarcity is the main problem. Cotton is the crop that needs lesser water than other crops. He complained that “local growers find no market for cotton in the district, as the ginning factory established in Dera Murad Jamali is lying closed. ‘We are unable to bear transportation expenses to take our produce to Sindh and Punjab markets’, he added.

The government promoted cotton cultivation in the province providing incentives to local growers. The incentive package included diversification of cropping pattern, switching over to cotton from rice and provision of better quality cottonseeds to growers at subsidised rates. Balochistan has two types of irrigation systems i.e. Indus gravity-fed canal system that irrigates 230,000 hectares and small-scale irrigation covering about 320,000 hectares annually. Out of 31,799 tube wells, 48 per cent are electrically-operated in the province.

Except Naseerabad district, there is no perennial system of irrigation. It depends on rain, Karezes and tube-wells for irrigation. Naseerabad is the only canal irrigated district that receives water from the tail end of the Indus River system at the time of sowing cotton and paddy.

The long- term water management programme will meet a long felt need of the province for adequate quantity of water, especially the expanding acreage of fruit orchards. The province is rich in groundwater resources offering best projects. Expansion of agriculture and other economic activities will require tapping of its groundwater potential.

There is a need to explore the idea of building groundwater dams, which store water underground, rather than on the surface. Water that is stored in the soil does not evaporate like ponds and streams. It is clean, healthy and free from parasites. The key is to find ways to capture wet season rainfall underground.

The watershed degradation is a problem in the province. It causes decline in groundwater table. The watershed management is aimed at recharging groundwater aquifer, rehabilitating rangelands, controlling flash floods and enhancing fuel wood production in the target area.

In the year 2000-01, cotton was cultivated on 100,000 acres of land and the province produced 112,000 bales of superb quality cotton, more than the estimated target of 100,00 bales. During FY 2001-02, 150,000 acres of land was brought under cotton cultivation and the set target was achieved. What is needed is to establish ginning factories, creating a demand at local level for the crop.

http://www.dawn.com/2007/02/05/ebr4.htm
 
Pakistan govt promises 70,000 new jobs for Balochistan this year

By ANI
Wednesday February 7, 2007

Islamabad, Feb 7 (ANI): Pakistan Minister for Inter-provincial Co-ordination, Salim Saifullah Khan has said that the federal government would create 70,000 nes jobs for the Balochistan province this year.

Chairing a high-level meeting here regarding the filling of vacancies of the Balochistan quota in federal services, the minister said that the government claimed that 30,000 jobs last year.

He said that the government was relaxing job criteria, including high educational qualifications and physical standards, for the people of Balochistan for induction into government services.

He directed all the ministries and divisions to expedite the filling of vacancies of the Balochistan quota and asked the National Commission for Human Development to focus specifically on Balochistan and extend their programmes in education and health sectors to the province, reported The News.

On the occasion, Saifullah also said that President Pervez Musharraf and Prime Minister Shaukat Aziz were "personally interested" in the development and progress of Balochistan because it was the "future of Pakistan".

http://in.news.yahoo.com/070207/139/6bvk7.html
 
February 12, 2007
‘Gwadar port revenue to be shared by Balochistan’

By Syed Fazl-e-Haider

PORT of Singapore Authority (PSA) International has taken control of the multi-billion dollar Gwadar port for a period of 40 years under the concession agreement signed on February 6 between the Gwadar Port Authority (GPA) and the Singaporean firm. The GPA will receive revenues from the PSA over a period of 40 years.

Under the concession agreement, the port operators have been exempted from all local and provincial taxes for 20 years. Balochistan government will be deprived of revenue as local and municipal taxes have also been waived. Critics say that Balochistan will lose revenue and would not be the primary beneficiary of this mega seaport project. When all taxes stood waived, what would Balochistan get from the project? On revenue generation side, the Gwadar project is out of its domain..

The province already lacks revenue-yielding and provincial tax levying authority. It has to excessively depend upon the resources received from federal government through NFC award. For generating only a paltry sum of Rs1.6 billion annually on its own,, the province has a fragile fiscal base with a heavy debt burden. It was anticipated that the port project would strengthen the fiscal base and then gradually widen the revenue base of the province. It did not happen.

It was also expected that operation of the port would help create a middle class. Currently, there is no infrastructure, no industry, no viable road network, no technical training centres and quality education institutions.. The province has no skilled and trained labour to utilise its natural resources.

The government, however, believes that free zone, which would be set up along the port, would contribute to harnessing of the province’s potential in natural resources and development of heavy and large-scale industries, petrochemicals and manufacturing. The port would provide large-scale employment, and value of land would further increase, and there would be other income generating activities for local people. But there is no infrastructure – water, electricity, roads and adequate settlements for living or development of industrial zone..

Ironically, tax-exemption decision has come from the poorest province that has been managing to run its affairs on loans and subventions. It has been in throes of financial crisis since1970 when it got the status of fourth province of Pakistan. Its pressing financial needs and obligations have currently thrown it in the vicious cycle of interest payments.

Officials, however, say that the Gwadar port would earn handsome revenue of $40 billion, which would be shared with Balochistan. According to Federal Minister Ports & Shipping the province would be given its due share, talks for which are under way between the federal and provincial governments. He said government efforts were specifically aimed at reducing poverty in the province, and announced that all employment of grade 1 to 16 would belong to locals, who would also be given a sizeable quota from within upper grade officers.

Despite the officials’ claim, the lack of skilled personnel in the province is likely to go against the interest of local people who may be deprived of having jobs in the Gwadar project for lack of skill and expertise.

In some ways, the local people would be primary beneficiary of the Gwadar project. The value of land, barren or cultivable, will skyrocket in Gwadar in particular and in Mekran in general after completion of the port and a score of projects related to this mega project. Their immovable properties and estates in coastal Balochistan would make them rich overnight. The provincial government has allotted land for the construction of warehouses in Gwadar and directed the authorities concerned to complete construction work along with all required facilities before making the port operational. The plots have been allotted in the industrial zone of the port city for construction of warehouses to facilitate importers and exporters.

Gwadar’s development as free port on lines of Dubai certainly promises massive investment (both foreign and domestic), greater generation of employment opportunities and more development projects in different sectors of provincial economy.

The project will revolutionise the communications sector in Balochistan. It will entail a multi-directional network of road communication in the province. The federal government has focused on strengthening infrastructure in the province, as 35 per cent budget of NHA is being spent on building a network of roads and highways, which would open up more income generation and employment opportunities in the province. An amount of Rs40 billion is being spent on the development of road networks across Balochistan aimed at connecting the port with the entire region. Gwadar would be connected with Afghanistan through Surab- Quetta and Chaman.

Balochistan is rich in mineral resources. With the development of its seaport, it will have enormous opportunities to exploit its mineral resources, which have so far have remained untapped. The seaport and its related planned regional highway projects will help the province become a “world-class mining centre.”

Whereas, the local people have attached great expectations from the development of the port, they also have serious reservations about the fast track development process in the port city. The ongoing process of economic development is viewed from different angles in Balochistan due to the close nexus of politics. The divergent perceptions about the development process have given rise to hope and hype, doubt and certainty and jubilation and frustration in Balochistan.

The long history of neglect and discrimination against Balochistan and the military operations undertaken in the past have turned it into a sensitive province. The development amid political instability may not be sustainable. A political solution to the crisis is inevitable. What is immediately needed is to assuage the Baloch grievances and resolve all issues through political reconciliation.

For many reasons, the inauguration of the port has been rescheduled. The main reason for delayed inauguration is the worsening law and order situation in Balochistan. The prevailing security environment in the province cannot attract foreign investment in Gwadar. There is a need to address the major concerns and genuine grievances of the local population.

http://www.dawn.com/2007/02/12/ebr8.htm
 
Balochistan projects to alleviate poverty: Musharraf

ISLAMABAD (February 14 2007): President General Pervez Musharraf on Tuesday said the government has launched a string of development projects in Balochistan to generate employment and alleviate poverty. Talking to Governor Balochistan Owais Ghani the President said the projects were aimed at bringing about a revolutionary change in the lives of the common man.

Governor Balochistan apprised him of the progress on the projects and thanked the President for his keen interest in the development of the province.

He said unprecedented number of projects have been initiated to create economic opportunities in the most remote parts of the province.

http://www.brecorder.com/index.php?id=528476&currPageNo=1&query=&search=&term=&supDate=
 
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