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THE ECONOMIC AND STRATEGIC IMPORTANCE OF BALOCHISTAN

Ankit Arvind Observer Research Foundation

ABSTRACT The paper focuses on the economic and strategic importance of Balochistan. It is an attempt to analyze and highlight the factors that make Balochistan an important strategic region by systematically presenting data, resources and the developmental projects in Balochistan. Nearly 80 percent of all the minerals produced in Pakistan come from Balochistan. The region is in fact a store house of natural resources that include gold, iron, silver, zinc, copper etc. The geographic location of Balochistan in the Perso-Oman Gulf confers strategic importance to this region on account of its easy access to central Asian countries, Gulf States and other neighbouring countries. The proposed Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline and the Iran-Pakistan (IP) pipeline will pass through Quetta and Suri districts of Balochistan thus enhancing its strategic significance. A 700 mile long sea coast and the development of the Gwadar Port have great prospect for the economic development of the region.

The province of Balochistan possesses a great economic and strategic potential. Of late this region has been under the scanner of several global players, like the US, China, India and Russia. The province has also witnessed an increase in the total annual investment. Balochistan can very well stabilize Pakistan’s shattered economy. Therefore this paper is an attempt to emphasize the economic and strategic potential of the region.

KEY WORDS

Balochistan Gwadar Port Sui Natural gas reserve Strait of Hormuz .

The given map depicts the location of different resources spread across the Province of Balochistan.

THE ECONOMIC AND STRATEGIC IMPORTANCE OF BALOCHISTAN

INTRODUCTION Balochistan the southern-western province of Pakistan possesses great economic potential. It is the largest of Pakistan’s four provinces in terms of area. It comprises 44 per cent of the country’s total land area. However in terms of the population Balochistan is the smallest province. There are three geographic regions of Balochistan, Hub, Lasbella and Khizdar. The coastal belt comprising Makran is dominated by Gwadar Port. Eastern Balochistan is home is a sparsely populated region and is home to the richest but largely untapped deposits of natural resources in Pakistan including oil, gas, copper and gold.

With the discovery of a number of natural resources and its important strategic location the province of late has witnessed an enhanced global engagement. This region is endowed with varied resources which include earth and water minerals. It holds large quantities of coal, gold, copper, silver, platinum, aluminum, and uranium. The 750 Km long coastline is not only a possible site of transit routes for trade and travel, but also the gatekeeper of rich marine resources. Strategically the geographic location of Balochistan has an added advantage with its close proximity to Central Asian regions. Balochistan is also a potential transit zone for pipelines, which include the proposed TAPI or Turkmenistan, Afghanistan, Pakistan, India pipeline and IP or Iran and Pakistan pipeline. The resource rich province has come under the scanner of some global players longing to invest and explore in the region. The United States of America, Russia, China, India and even Pakistan have shown keen interest in the region. The strategic importance of Balochistan lies in its potential to either take the forefront in development in South Asia, or be the epicenter of the next large scale multinational conflict.

The region is experiencing increased interest from foreign investors and developers, with the discovery of vast fields of natural gas, along with other valuable minerals. To augment this development, the construction of a deep-water port at Gwadar has the potential of bringing globalization to the region in an exponential manner. However the irony is that even though Balochistan is regarded as a resource rich area, the social, political and the economic condition of the locals is very grim. The province is in a state of disorder owing to the dreadful activities carried on by sectarian forces like, the Lashkar-e-Jhangvi, Sipah-e-Sahaba as well as the security forces.

The given table highlights some general figures pertaining to Balochistan:-

Literacy 	Cultivated area	Population 	Population- density	Area	Coastline	Districts 30.1%	2.11 million Ha	7.8 million	19.8/ Km	347,190 sq Km	770 Km	26

Note: - the figures have been taken from sitesources.worldbank.org

THE ECONOMIC IMPORTANCE OF THE REGION

In terms of the economic potential of the province it is imperative to mention that Balochistan is one of the richest areas as far as the natural endowment of resources is concerned in South Asia. A substantial portion of Pakistan’s energy and mineral requirement, quantitatively accounting for more than 60 percent of the requirement, is fulfilled by the Province. The low population density also provides a high value of natural resource per person. It also has plenty of real estate for extensive building projects, along with access to a cheap labor pool.

The Balochistan province represents Triassic to recent strata with different sedimentary basins  like Balochistan basin, part of Indus Suture (Axial Belt), and Sulaiman and Kirthar  basins. Indus Suture separates the Balochistan basin in the west and Sulaiman and Kirthar (part of Indo-Pakistan subcontinent) in the east. Indus Suture includes the igneous, sedimentary and metamorphic melanges. The Sulaiman and Kirthar basins consist of Triassic to recent strata. Balochistan is the richest mineral province of Pakistan. The Chagai-raskoh magmatic arc and Indus Suture are the richest metallogenic zones  in the Balochistan province and also in Pakistan; where as the Sulaiman and Kirthar are rich in sedimentary minerals. Balochistan province has large proven reserves of indigenous iron, copper, lead, zinc, barite, chromite, coal, gypsum, limestone (marble), ochre, silica sand, etc, small deposits of antimony, asbestos, celestite, fluorite, magnesite, soapstone, sulphur, vermiculite, etc.

Few resources have already been explored and are utilized within Pakistan, where as some are being exported but most of the resources are yet to be explored and utilized. Cement raw materials are found in abundance, so the installation of more cement industries can be very advantageous for the country’s economy. Similarly coal production in the province is also very high. According to the figures published by the Geological Survey of Pakistan, 58 percent of the total coal production takes place in Balochistan.

The Balochistan coast offers an economic zone potentially rich in oil, gas, and minerals spread over approximately 180,000 square Kilo Metres. The low population density implies that the province enjoys a potentially high value of natural resources per person. The forbidding topography is home to rich mineral deposits – some of which have been explored and exploited while yet others remain to be put to economic use. The strategic engagement in Balochistan was till recently confined to India, Iran and Pakistan. Apparently the abundant resources of the province has given enough reasons to the global players who till now were inattentive to the province, to engage with it at the bilateral level.

It is imperative to mention that Balochistan as a resource rich province has been witnessing a phase of intense instability both social and political. Therefore exploration and utilization in a number of sectors are inadequate. Proper utilization and exploration of resources has the potential to greatly assuage the problem of energy crisis in South Asia, especially Pakistan. Balochistan in the coming years assuming the grim climate of instability to ease out will be at the crossroads of experiencing a climate of multifold increase in the level of investment both indigenous and global. Hence, emerge as a global strategic block.

The following shows the production of various minerals and metals in quantitative terms for the year 2007-08 in Balochistan:- 36, 583 tons (t) copper, 245t antimony, 49,268t barite, 331t basalt, 33,815t chromite, 25t clay, 2,325,220t coal, 291t granite, 259t rhyolite, 134t diorite, 183t gabbro,2,431t serpentinite, 98t gneiss, 323t quartzite, 360t sulphur, 176t dolomite, 424t fluorite, 75t galena, 15,808t iron ore, 727,951t limestone, 70,740t marble (onyx), 267,312t marble (ordinary), 790t magnesite, 1,385t manganese, 5,060t pumice and 1,306,764t shale.

Copper – The copper deposits occur extensively at several localities in the Chagai magmatic arc. Dasht Kain copper deposit is 35 Km NW of Chagai villages is porphyry type copper prospect associated with two tonalite porphyry stocks. Talaruk copper deposit is 64km NW of Saindak in Chagai District. It is a massive Kuroko type deposit and mineralization is of submarine exhalative origin. The copper ore occurs in two zones, one in rhyoliteintrusives in which chalcocite is the main copper mineral and the other in volcanic breccia associated with gypsum. Six bore holes were drilled at this deposits and its copper content has been about 0.65%. Saindak Copper Deposit at Chagai district, where a total of 412million ton deposit of ore has been discovered of which 0.38% is copper. Apart from these deposits the Western part of the province is supposed to have a major chunk of copper deposits. Gold- Silver – world class deposits of Gold and silver have been found in and around porphyry copper deposit region.

Iron ore – Balochistan Basin has ample iron ore deposits, spread over a large area including Saindak, Mashki Chah, Durban Chah, Amir Chah, Chilghazi, Gorband, Kasanen Chapar, Kundi Balochap, Pachin Koh, Chigendik, Bandegan and Nok Chahareas. Some of the important iron ore deposits include Pachin Koh-Chigendik iron deposits located near Nokundi town and Chilghazi iron deposit located near Dalbandin town.

Tungsten – Tungsten ore deposits has been found at Amalaf in Chagai district. The ore is found in pyroclastic rocks of Saindak formation.

Sulphur – Sulphur deposit is located in the Koh-i-Sultan volcano. The ore found contains 60% sulphur.

Marble – Marble, various types of Lime stones and igneous rocks mainly granite are found from Chagai area.

Lead-Zinc – Lead, Zinc are found in and around Saindak, Koh Marani, Dirang Kalat, Makki Chah and Ziarat Balanosh.

Manganese – Manganese is reported to have been found at Nushki.

Barite-Tourmaline – Barite and tourmaline too has been reported to be found in and around Chagai area.

Chromite – Deposits of Chromite have been found in Nag-Bunap and Rayo Nai valley within a distance of 3km, near Kharan Kalat town.

Vermiculite – Vermiculite deposits are reported from Doki River on the northern edge of the western Raskoh.

Balochistan has sizeable reserves of coal and natural gas, and there is a conjecture that it may also hold large reserves of petroleum. Natural gas has special importance in Pakistan’s energy profile as natural gas accounts for 50% of Pakistan’s total energy consumption. Balochistan accounts for 36% to 45% of total energy production of Pakistan. Balochistan’s natural gas reserve is very important from Pakistan’s point of view. Natural gas is not only the primary energy source of Pakistan but also out the total proven natural gas reserves in Pakistan estimated at 28 trillion cubic feet, 19 trillion cubic feet reserves are found at Balochistan itself. Even though Balochistan has such an ample reserve of natural gas, yet it only consumes 17 per cent of its total reserves.

The long operating Sui gas field in the Bugti tribal region is responsible for the production of a major portion of the province’s natural gas. However this region is gravely affected by the Baloch militancy. Attacks against natural gas installations and pipelines are increasing in number. According to a report published in 2006, the violence had increased in frequency and intensity. The recent targets of the insurgents are energy production sites like the Sui in Dera Bugti. On May 19, 2006, two main gas pipelines to Punjab were blown up, cutting off gas supplies to the province.

The total consumption of energy and resources in Pakistan is increasing exponentially and there is immense pressure on Pakistan to rely on imports to meet its energy demands. However some of the pressure can be relieved by aggressive exploration and extraction of resources in Balochistan. However in order to carry on the exploration smoothly the authorities need to neutralize the acidic effect of the sectarian violent activities that have affected normal life in Balochistan. The potential that this region possesses can only be completely explored until and unless the prevailing situation there becomes normal.

Balochistan will also become a transit route for the proposed 1,680 Kilometer long Turkmenistan, Afghanistan, Pakistan, India (TAPI) pipeline. This pipeline would have the capacity to transport up to 3.2 billion cubic feet daily from Turkmenistan’s Dauletabad field to markets in Afghanistan, Pakistan and India. Another proposed pipeline is Iran, Pakistan (IP) pipeline. These pipelines are of immense economic and strategic importance to Pakistan in general and Balochistan in particular. However the threat of the insurgents remains intact even to these strategically important pipelines.

The region apart from the construction of the natural gas pipelines is also witnessing the fast paced development of competitive and politically divisive transport corridors built on a north-south axis. These corridors consist mainly of port, road, rail and air infrastructural networks. The primary function of these networks is along with promotion of commercial and political ties, access to the energy rich CARs and to achieve some influence over the production, processing and distribution of energy resources.

Apart from the regular exploration and mining activities, the development of the warm water deep sea Gwadar Port at Balochistan has the potential to augment the economic development of Balochistan and subsequently Pakistan. The port is located on the eastern bay of a natural hammerhead shaped peninsula jutting out into the Arabian Sea from the coastline. The port is situated close to the Strait of Hormuz and its important oil shipping lanes. This region is home to around two-third of the world’s oil reserves. It is also on the shortest route to the oil rich Central Asian states through land-locked Afghanistan. The deep sea port at Gwadar is likely to generate around two million jobs in the coming years. The purpose of developing this port according to the officials is to stimulate economic growth in the western and northern parts of Pakistan, utilizing the available coastline resources of the country and also providing an outlet for the land-locked Central Asian countries and Afghanistan through transit trade and offering transshipment facilities. Finally, the port will also act as a catalyst for large number of related projects like, trans-shipment of bulk cargo, oil storage, refinery and petrochemicals, export processing and industrial zones, export of minerals and livestock and services like hotels accommodation and tourism.

The map shows the location of the strategically and economically important Gwadar Port.

Investment in Balochistan:- Balochistan provides highly developed industrial estate facilities in the province. These estates caters to all types of industry needs and are well supplied with a wide range of infrastructure and related services which include Quetta Industrial and Trading Estate, Hub Industrial and Trading Estate , Uthal Industrial Estate (UIE) , Marble City etc. The major sectors for investment in Balochistan are Minerals, Agriculture, Horticulture, Fisheries, Livestock, Tourism and Oil and Gas.

A large number of Business opportunities are provided by the Mineral Sector in Balochistan. These opportunities primarily include, coal mining and processing, coal washing plants, coal brequetting plants, marble, onyx and granite mining and processing, marble/granite warehousing, marble, granite and onyx mosaic and handicraft centers, steel mills, copper and lead-zinc exploration, Mining and processing, chromite mining, chromite beneficiation plants, export of chromite, export of marble, onyx, granite products, barite mining and processing, limestone mining and crushing units, gems exploration and mining, gems lapidaries and gemological labs, manganese mining, processing and export.

Priority sector of investment in Balochistan:-

Minerals Horticulture Fisheries Livestock Handicrafts

Important minerals:-

Coal Chromite Barytes Sulphur Marble Iron Ore Quartzite Limestone Sulphor Main areas of investment in horticulture:-

Fruit processing plants Apple treatment plants Date processing plants Tomato paste manufacturing Fried dried onion plants Cut flower business and floriculture Plantation of palm trees and processing Cool chains

Apart from the rich resource base Balochistan is also reported to have 49 per cent of the total livestock in Pakistan. Balochistan’s coastline includes 70 per cent of Pakistan’s coastline. Therefore Balochistan also possesses a rich marine resource potential. The annual fish production of Balochistan is 121,212 million tones.

However in terms of relative advantage there are important disparities between Balochistan and Pakistan. Pakistan is a labour-abundant economy with large growth potential in various sectors, to be precise in agriculture, manufacturing and services sectors. Balochistan is relatively limited in its endowments of human capital, agricultural growth and industrial investment. In fact Balochistan’s contribution to the national GDP has remained constant for the past few years.

The comparative potential of agriculture in Balochistan is restricted by the persistent scarcity of water in the province. Livestock and horticulture dominate the agricultural sector of the province. Although the mineral sector is far more significant but as yet is under-developed in Balochistan’s economy and by and large employs only 1.3 per cent of the employed persons in the province.

Thus it can be very well stated that Balochistan in terms of availability of resources both land and marine is the richest province of Pakistan yet it needs to build up an infrastructure conducive for long term investment and development.

The given table shows the total production of different resources in Balochistan:- Copper	antimony	Barite	basalt	chromite	clay	Coal	granite 36,583	245	49,268	331	33,851	25	2,325,220	291 Rhyolite	diorite	gabbro	serpentinite	gneiss	quartzite	Sulphur	Dolomite 259	134	183	2431	98	323	360	176 Fluorite	galena	Iron 	Lime stone	marble	magnesite	manganese	pumice 424	75	15808	72,795	70,740	790	1,385	5,060 Shale 1,306,764

Note: the given figures are in the unit of tones.

The given figure shows Balochistan’s percentage share of various sectors

Area	coastline	livestock	fishery	agriculture 44%	70%	49%	40%	27%

Note: - the figures have been taken from sitesources.worldbank.org and Economic Survey of Pakistan.

An overview of the National gas production and consumption among the provinces:-

Province	Total gas produced	Total gas consumed	Consumption as % of production Sindh	1,000,415 (70%)	459,369 (37.59%)	45.91% Punjab	68,608 (4%)	638,008 (52.21%)	930% KhyberPakhtunkhwa	26,370 (1%)	42,480 (3.48%)	161% Balochistan	318,188 (22%)	82,138 (6.72%)	25.81% Total	1,413,581	1,221,995 Note: the figures have been taken from the report on Balochistan by PILDAT

STRATEGIC IMPORTANCE OF BALOCHISTAN:-

Balochistan is spread over an area of approximately 34.7 million hectors, constituting about 44% of Pakistan. Its area stretches from the plains of Punjab across the Suleiman range in Dera Ghazi Khan to the shores of Arabian Sea in the Makran division, and desert wastes of Thar in Sindh to the mountain belt of Waziristan in Afghanistan/NWFP borders. Its geo-strategic importance can be gauged from the fact that it not only links all the three provinces, but also two of the neighbouring countries Iran and Afghanistan through roads and railways. The international routes to Iran and Afghanistan are very important as it provide linkages to Central Asia, Middle East and Europe.

The land mass of the province endows Pakistan with a strategic space that might shorten trade and travel costs between emerging economic regions. The long coastline is not only a possible site of transit routes for trade and travel, but also the gatekeeper of rich marine resources.

Apart from its thriving resource availability Balochistan is also a potential transit zone for pipelines. Currently there are two proposed pipelines the TAPI pipeline and the IP  pipeline. The former pipeline would be developed for transporting natural gas from Turkmenistan and Iran to Pakistan and India. The latter would transport natural gas from Iran to Pakistan. The point of irony in Balochistan is that in terms of resources the province is the richest in Pakistan, however at the local level the political, social and the economic condition of the people is dismal. The level of literacy is around 30 per cent, political instability, human rights crisis in the form of sectarian extra-judicial killings have blemished the state of affairs in Balochistan.

It is imperative to understand that Balochistan possesses a great potential to play an important strategic role not only for South Asia but for the entire world. The United States of America, China, Russia, India and Pakistan have not only shown keen interest in this region but have also invested in various developmental projects in Balochistan.

Access to energy resources both oil and gas has taken a forefront in terms of driver of Pakistan’s security policy. Energy security in Pakistan as in most other countries is the top agenda of the government. Balochistan can in fact play a vital role on this front.

The development of the Gwadar Port in Balochistan has given a due strategic importance to the region. The Gwadar project was initiated by Prime Minister Nawaz Sharif and this Port became operational in 2008. Gwadar Port in fact has been largely funded by China and consequently China which is an important ally of Pakistan intends to gain immensely from this project. China will not only gain economically from this project but this could help China acquire a firmer say in the strategic interaction in South Asia.

Gwadar has already grown into a bustling town with prospects of far greater expansion. Its location 650 Km west of Karachi provides some needed strategic depth for Pakistan’s modest sized naval force. Gwadar lies on major maritime shipping lanes close to the region’s vast oil and gas resources and also close to the rapidly growing and dynamic Persian Gulf economies. It is an all year, all weather, deep channel port that will eventually be able to offer accommodations for the largest oil tankers, along with ease of access to the docking area and unusually short turn-around times.

It has also been planned to link this port to a rapidly expanded web of road, rail, air and pipeline networks to neighbouring states.

China has acknowledged that the strategic importance of the Gwadar Port is no less than that of the Karakoram Highway which helped cement China-Pakistan relationship. Beijing in fact is interested in turning it into an energy transporting hub by building an oil pipeline from Gwadar into China’s Xinjiang region. The planned pipeline will carry crude oil sourced from Arab and African states. Apparently transport by pipeline will cut freight costs and also help insulate the Chinese imports.

From the security point of view Balochistan offers a logistical pool and an apparent military base for the ongoing operations in Afghanistan and the surrounding regions. Air Force and Navy operating from Balochistan can also exert control over the Strait of Hormuz as well as the shipping lanes transiting across the Indian Ocean. Balochistan also shares a common boundary with Afghanistan and with Iran. Thus the accessibility to these regions offers an enhanced strategic importance to Balochistan. The strategic magnitude of Balochistan lies in its potential to either take the forefront in progress in South Asia, or be the epicenter of the next large-scale multinational conflict. With increasing pressures from regional and international actors in their bids for power and influence and with its prime location along multiple sea and land routes to multiply barely tapped markets, the strategic importance of Balochistan has augmented all across. However with this development the security of the region and pacification of the Baloch has taken an increased importance.

The instability in Balochistan is no more a local concern. Prior to the discovery of natural resources the Baloch agitation was a local problem that was hardly paid attention to by other nation-states. However after the Soviet Union’s intervention in Afghanistan, Balochistan became an important strategic and economic nucleus of the region. With the international presence especially that of the Chinese increasing at a drastic pace Balochistan is all set to become a centre for enhanced global engagement.

The change in the energy perspective put forth a strong pressure on the tactical ebb and flow of the insurgent-counterinsurgent dynamic.

The American Interest in Balochistan

In the early month of 2012, a resolution on Balochistan was introduced in the US Congress. There has been a wide speculation behind the motive for the introduction of the resolution. The official reason behind such a move was human rights. However the strategic importance of Balochistan for the US has nevertheless been denied by a section within the US.

The reasons why America is taking so much interest in Balochistan all of a sudden is its natural resources and its location. Balochistan shares borders with Afghanistan and Iran along with warm waters of Indian Ocean. In fact US considers Balochistan strategically important for various reasons. From the port of Gwadar in the Makran coast Balochistan would provide an easy access to Afghanistan and Central Asia to the US. Secondly the Chinese presence and investment in Pakistan is another reason for American interest in Balochistan. Balochistan also shares its borders with Iran. This could be another reason for American interest in Balochistan. A section in Pakistan has also blamed America for supporting anti state elements in Balochistan.

The United States of America also plans to invest a great deal in Balochistan. According to some of the Pakistani officials the US is also supporting the pro- independence movement in Balochistan, along with India and Israel.

However the larger issue that needs to be answered is that how far an independent Balochistan will help satisfy the American strategic interests in the region. Based on the logic of deteriorating relations between Pakistan and the US it is somewhere clear that an independent Balochistan will in absolute terms serve a better purpose for the United States. Balochistan can not only serve as a probable transit route for NATO’s supply in Afghanistan which of late has been an issue of friction between the two countries but with its important strategic location Balochistan can also provide an easy access to Iran in case of future confrontation between the United States and Iran. This situation seems to be highly probable in the present circumstances.

The US is also very keen about countering the Chinese effect in the region. The American interest therefore in Balochistan becomes inevitable with the growing Chinese engagement in the province.

lastly with the changing energy scenario and the availability of abundant reserves of natural gas, petroleum and other natural resources Balochistan has of late taken a centre stage in the global arena as a viable source of energy and a potential global market. Thus the American interest in Balochistan has become all the more certain.

China’s Interest in Balochistan

Pakistan is one of the close strategic partners of China. With the changing geo-political situation in Afghanistan and Pakistan region, China intends to play a larger role in this region. China has been investing largely in Pakistan and has spent millions in Balochistan particularly. The strategically as well as economically important port at Gwadar has been built by using Chinese money as well as expertise. There are reports that Pakistan has also asked China to run the Port as well as establish a naval base at Gwadar.

China has large strategic and economic interests in Balochistan. The large natural resource potential of Balochistan and its location has given a lot of reasons to China to invest in the region.

The Chinese firms have been awarded contracts for the exploitation of the gold-copper reserves at Saindak in Balochistan and part of the natural gas reserves at Sui. The Nawaz Sharif Government had awarded to Chinese petroleum firm, the Bureau of Geophysical Prospecting (BGP) a one million dollar contract for seismic survey over 178 Km in Sui. This was the first time that the Chinese had entered gas and oil exploration activities in the country. China has invested $ 240 million for the development of Gwadar port and another $ 200 million for the construction of coastal highway linking Karachi and Gwadar.

China’s inevitable interest in Balochistan it seems has a dual agenda. The economic prospect remains one of the prime factors. Apart from the economic interest it is very clear that China intends to establish a compact role in the Central and South Asian region. Although China denies Pakistan’s request of building a naval base at Balochistan, yet according to the American and Indian geo-strategic analysts Chinese intentions are not clear yet and there exists a strong possibility of a Chinese naval base at Balochistan.

The ample economic prospect of Balochistan forms the core of the Chinese interests in the region. The province has been bestowed with natural gas reserves, petroleum and other natural resources. China’s energy requirement has been growing exponentially and with the changing energy scenario, Balochistan stands high as a feasible energy alternate source. Apart from the Gwadar Port, China has been investing in a number of infrastructural projects in Balochistan. China has invested greatly in highways projects running across the province. It is also planning to build a gas pipeline connecting Gwadar and Xinjiang in China.

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Indian Interest in Balochistan

The Pakistani establishment has blamed the Indian State for supporting the Baloch Liberation Army and their cause. The question is what are the Indian interests in the region? As is the case with the US and China, India too wants a share in the large resource base of Balochistan. Energy security is a major concern in India. Balochistan’s ample natural gas reserve can greatly strengthen India’s energy scenario.

India is also interested in playing a larger role in this region and thus plans to invest in Balochistan in the long term. The broader issue is that India and Iran have been active in Balochistan even before the Chinese and the American engagement in the region. As mentioned earlier a section in Pakistan in fact blames India for supporting the Baloch extremists against the state. However the Baloch leaders have denied such allegations. Even though the allegation might not be based on strong proof yet it cannot be denied that India has shown keen interest in Balochistan. India’s reasons for active participation in Balochistan vary. It is imperative to acknowledge the fact that India is also interested in capitalizing the strategic value attached to this region.

The question that arises is that how far an independent Balochistan is in India’s interest? There cannot be a straight forward answer to this complex question. Yet one cannot shy away from admitting the fact that an independent Balochistan in terms of India’s strategic interests could be very constructive. Firstly, India would definitely get a large enough space to play a bigger role in South Asia. Secondly, an independent Balochistan would by and large provide relatively easy Indian accessibility to its abundant natural resource reserve. Thirdly, India could effortlessly counter Chinese hegemony in South Asia with a strong holding in the independent province of Balochistan.

Thus India has strong enough reasons to support Balochistan’s independence. India also intends to invest in Balochistan in the short and medium term. Indian interests in the short term however are confined to natural gas and petroleum.

Beginning of Rights in Balochistan (Aghaz-e-Balochistan)

In December 2009 Pakistan’s newly elected civilian government, in an effort to bring about political reconciliation in the province, passed the Aghaz-e-Balochistan (Beginning of Rights in Balochistan) package of constitutional, political, administrative and economic reforms. It noted the province’s sense of deprivation in the political and economic structures of the federation and past failure to implement provisions of the 1973 Pakistan Constitution that sought to empower the provinces.

The package aims to delegate a range of federal areas of authority to the Balochistan government and requires federal authorities to obtain provincial government consent with respect to major projects. It seeks to redress the province’s socio-economic disparity compared to the rest of the country by increasing Baloch employment in the civil service, giving provincial and local government authorities a greater share of resource industry revenues and compensating communities displaced by violence. It also calls for military cantonments under construction in the resource rich Sui and Kohlu regions to be temporarily halted and for the military to be replaced there by the Frontier Corps. Under the package, the Balochistan chief minister is to have control over the Frontier Corps’ law and order operations. The package also calls for an investigation of missing persons and for all persons detained without charge to be released.

As a result of the package, the Pakistan federal government in 2010 released Rs. 12 billion to the Balochistan government in outstanding debts with respect to natural gas revenues. The government also announced a Rs. 152 billion budget for the province. The package also establishes a judicial inquiry into the killing of Nawab Akbar Bugti and other Baloch political leaders. However despite such an intensive package, doubts persist over the future prospects of the province. The Baloch leaders have in fact completely rejected the package, stating that it does not cover the core areas of concern.

CONCLUSION

Balochistan with its South Asian political association and Central Asian ecological description has given an enhanced geo-political credence to the region. The region which was once confined to its local problems and forced instability has now become an important strategic epicenter. Although the chronic regional instability still remains a major area of concern. It has been on the global radar of important international players like the US, China, Russia and India.

With a large resource base and vast economic potential Balochistan is ready to play a greater geo-strategic role in the international arena. . The forbidding topography is home to rich mineral deposits some of which have been explored and exploited while yet others remain to be put to economic use. The land mass of the province endows Pakistan with a strategic space that might shorten trade and travel costs between emerging economic regions. The long coastline is not only a possible site of transit routes for trade and travel, but also the gatekeeper of rich marine resources.

Its growing international importance is critical for understanding what lies in its future, given the fact that merely thirty years ago, only surrounding regional powers, such as India and Iran, cared about what was occurring in the state. However the changes in the international and regional setting mean that a neglected Balochistan may turn into the next serious global conflict, which can be averted by timely action.

However, the importance of this province has come ever more into focus, due to the world’s changing political and economic position because of the diminishing market and contracting resource base. With China all set to acquire a steadfast ground in the region and the US ready to counter the Chinese domination. India, Russia and Pakistan too have shown keen interest in acquiring a share in the large economic potential of Balochistan.

As national economies expand into various markets and competition for valuable resources intensifies, Balochistan due to its location and resources stands to be caught in the crossfire of multiple agendas. With the discovery of vast fields of natural gas, along with other valuable minerals, the region is experiencing increased interest from foreign investors and dev1elopers. Along with this, the terrain of Balochistan makes it a prime location for the development of roads, railroads and pipelines to connect the Middle East, Central Asia and South Asia. To augment this development, the construction of a deep-water port at Gwadar has the potential of bringing globalization to the region in an exponential manner.

Security issues in the region involve global players such as China, Iran, and India in the politics and the future of Balochistan. Shortages of natural resources and strategic location are prime factors for additional international pressures placed on the government. Ironically, these same resources are the reason why the Pakistani central government cannot afford to deal with the insurgents demands. With the vital necessity of the resources, as well as the security of the region for extraction and distribution, while the Baloch have more incentive to fight, the central government has more reasons for the ruthless crushing of the insurgency.

It is also important to note that Balochistan has a long history of political instability. Therefore the region by default has acquired the status of being a highly sensitive zone. Consequently any form of third party engagement in the province can prove to be fatal for the concerned groups. Therefore it will be interesting to see how the concerned authorities handle the on going problem of insurgency in the province and thus carve out a planned development model for the province.

Proposed natural gas pipeline route transiting Balochistan

REFERENCES:- •	www.balochistan.gov.pk/ •	books.google.co.in/books/about/Metallogeny_and_mineral_potential_of_nor.html?id=mkpRAQAAIAAJ&redir_esc=y •	www.cgmme.com/Article.aspx?CId=Pakistan&Txt=1 •	www.buildasia.net/conferences2007/Mineral_Resources_of_Balochistan.pdf •	www.scribd.com/doc/85341992/Minerals-of-Balochistan-Research-Paper •	eprints.hec.gov.pk/898/1/627.htm •	siteresources.worldbank.org/PAKISTANEXTN/Resources/Pakistan-Development-Forum/Balochistan.pdf •	www.pakboi.gov.pk/index.php?option=com_content&view=article&id=253&Itemid=176 •	http://pakobserver.net/detailnews.asp?id=90266