Giving People of Balochistan a Stake in Its Mineral Wealth

[RiazHaq]

The US state of Alaska has a small population of only 680,000 people and vast territory measuring 1.5 million square kilometers. The state is endowed with tremendous mineral wealth--particularly oil and gas. Alaska Permanent Fund was set up in 1976 to ensure that ordinary Alaskans get a share of this natural wealth. Currently the fund has assets of over $38 billion and each Alaskan will receive $1,174.00 in cash from it for 2011.

Pakistan's Balochistan province shares some similarities with the US state of Alaska. It is the largest of Pakistan's four provinces in terms of area (347,190 square kilometers) but the smallest in terms of population (6.6 million). With large reserves of copper, gold and natural gas, it is probably the richest of Pakistan's provinces in terms of its natural resources.

Most of the grievances of the people of Balochistan stem from a sense that they have not benefited from the resources under their land. Powerful tribal chieftains in the province have exploited this sense of deprivation to demand and receive significant funds for themselves while ordinary Balochis have remained among the poorest most and backward in Pakistan.

As Pakistan moves forward with vast new mineral discoveries such as Reko Diq in Balochistan, it's essential that there be a mechanism to equitably share with ordinary Balochis the billions of dollars in revenue expected to flow from these resources.

Balochistan Fund can be modeled on Alaska Permanent Fund. It is a constitutionally established and professionally managed fund which is run by a semi-independent corporation. Shortly after the oil from Alaska's North Slope began flowing to market through the Trans-Alaska Pipeline System, the Permanent Fund was created by an amendment to the constitution of the U.S. state of Alaska to be an investment for at least 25% of proceeds from some minerals [such as oil and gas] sale or royalties.

Similar funds should be established for other provinces as well. For example, energy-rich Sindh has large coal deposits and huge shale gas reserves which are worth at least hundreds of billions of dollars. Revenues from these resources should be shared equitably to benefit ordinary citizen of Sindh province.

Sharing of the wealth with the people in each province will give them a tangible stake in national development. It will help bring and maintain peace and stability necessary to attract badly needed investments for developing Pakistan's vast mineral resources.

Haq's Musings: Alaska Permanent Fund--A Model For Balochistan's Mineral Wealth Sharing

 

[Omar1984]

There is also a separatist movement going on in the U.S. state of Alaska.

The Alaskan Independence Party is a political party in the U.S. state of Alaska that advocates an in-state referendum which includes the option of Alaska becoming an independent country.

Alaskan Independence Party - Wikipedia, the free encyclopedia



Back to topic: We should have autonomous provinces like China.

Autonomous regions of the People's Republic of China - Wikipedia, the free encyclopedia




Quaid-e-Azam also wanted autonomous provinces for Pakistan.

 

[SBD-3]

The US state of Alaska has a small population of only 680,000 people and vast territory measuring 1.5 million square kilometers. The state is endowed with tremendous mineral wealth--particularly oil and gas. Alaska Permanent Fund was set up in 1976 to ensure that ordinary Alaskans get a share of this natural wealth. Currently the fund has assets of over $38 billion and each Alaskan will receive $1,174.00 in cash from it for 2011.

Pakistan's Balochistan province shares some similarities with the US state of Alaska. It is the largest of Pakistan's four provinces in terms of area (347,190 square kilometers) but the smallest in terms of population (6.6 million). With large reserves of copper, gold and natural gas, it is probably the richest of Pakistan's provinces in terms of its natural resources.

Most of the grievances of the people of Balochistan stem from a sense that they have not benefited from the resources under their land. Powerful tribal chieftains in the province have exploited this sense of deprivation to demand and receive significant funds for themselves while ordinary Balochis have remained among the poorest most and backward in Pakistan.

As Pakistan moves forward with vast new mineral discoveries such as Reko Diq in Balochistan, it's essential that there be a mechanism to equitably share with ordinary Balochis the billions of dollars in revenue expected to flow from these resources.

Balochistan Fund can be modeled on Alaska Permanent Fund. It is a constitutionally established and professionally managed fund which is run by a semi-independent corporation. Shortly after the oil from Alaska's North Slope began flowing to market through the Trans-Alaska Pipeline System, the Permanent Fund was created by an amendment to the constitution of the U.S. state of Alaska to be an investment for at least 25% of proceeds from some minerals [such as oil and gas] sale or royalties.

Similar funds should be established for other provinces as well. For example, energy-rich Sindh has large coal deposits and huge shale gas reserves which are worth at least hundreds of billions of dollars. Revenues from these resources should be shared equitably to benefit ordinary citizen of Sindh province.

Sharing of the wealth with the people in each province will give them a tangible stake in national development. It will help bring and maintain peace and stability necessary to attract badly needed investments for developing Pakistan's vast mineral resources.

Haq's Musings: Alaska Permanent Fund--A Model For Balochistan's Mineral Wealth Sharing

There are three major issues to this concept's materialization.....
1-Balochistan Government will oppose any such development which would likely to sideline them and have potential benifit for people.
2-If the royalty is paid by the mining companies to Balochistan Government (which they would have been), then its the fault of provincial government to not to use this royalty (which is the contribution made to the people/government of the land for reaping its rewards) to creat the fund. If not, then this proposed fund should have made up from royalty.
3-Who will manage this, will it be independent, under the government, or something else. This will be a big issue

Moreover, merely liquidating the fund and handing over the money to residents may make them happy and wealthy for few months or may be for few years but there is another even better example available in Norway so as to how to deal with such revenues, they have created two funds out of their oil revenues. 1) a pension fund which actually ment for the cash flows for future generations as the resource belongs to all the future generations yet to come thus its unfair that you prosper at the cost of someone who equally owns the resrouce but is yet to see the light of the day, an excellent example of social responsibility. 2) An oil fund which is being ment for development of alternative energy to compensate future generations when the oil reserves exhaust as a result of usage by current generation.

 

[RiazHaq]

Some readers have raised questions about the differences between Alaska and Balochistan in terms of the native populations being different from the majority of national population.

No two places are ever exactly alike, but both Alaska and Balochistan have small native populations which constitute a minority in each. Alaska has 15% native population and Balochistan has over a third of its population that are ethnic Baloch.

Almost as many ethnic Baloch people live outside of Balochistan province (in Sindh and Southern Punjab) as in Balochistan, according to Anatol Lieven (Pakistan-A Hard Country)....and they are quite well integrated with the rest of the population in Pakistan.

Asif Zardari, the current president of Pakistan, is an ethnic Baloch, as was former President Farooq Laghari.

 

[Rafi]

Some readers have raised questions about the differences between Alaska and Balochistan in terms of the native populations being different from the majority of national population.

No two places are ever exactly alike, but both Alaska and Balochistan have small native populations which constitute a minority in each. Alaska has 15% native population and Balochistan has over a third of its population that are ethnic Baloch.

Almost as many ethnic Baloch people live outside of Balochistan province (in Sindh and Southern Punjab) as in Balochistan, according to Anatol Lieven (Pakistan-A Hard Country)....and they are quite well integrated with the rest of the population in Pakistan.

Asif Zardari, the current president of Pakistan, is an ethnic Baloch, as was former President Farooq Laghari.

The biggest credit that can be given was by the leader of the BLA who said those Balochis had become Pakistanis.