Dr. Ikramul Haq & Abdul Rauf Shakoori
The province of Balochistan, comprising approximately 44% of Pakistan’s territory, stands as the country’s richest yet most underdeveloped region. Located in the southwestern part of Pakistan, Balochistan shares borders with Afghanistan and Iran, and possesses a long coastline along the Arabian Sea, offering substantial strategic advantages and economic opportunities—development of blue economy.
Balochistan serves as a gateway to Central Asia, the Middle East, and maritime trade routes, particularly with the development of the Gwadar Port, the prime project of China-Pakistan Economic Corridor (CPEC), flagstaff of China’s Belt & Road initiative (BRI). Despite all this, Balochistan remains marginal in national economic planning, infrastructure investment, and industrial development, confirming apathy of ruling elites of Pakistan towards the most important part of the country.
Geologically, Balochistan is one of the most mineral-rich areas in South Asia. The province holds over 50 types of metallic and non-metallic minerals, including copper, gold, chromite, barite, limestone, and coal. With more than 347,190 square kilometers of land, it remains largely unexplored using modern geological methods and technological advances. High-potential areas, such as Chagai, Lasbela, Khuzdar, and Loralai, are the host to world-class mineral deposits.
Among the most prominent projects is the Saindak Copper-Gold Project, operational since 2003 under the management of the Metallurgical Corporation of China. The project has produced over 120,000 metric tons of copper, approximately 2.2 tons of gold, and 4.3 tons of silver, employing over 1,600 local workers. Similarly, the Reko Diq project stands as one of the world’s largest untapped reserves, containing over 5.9 billion tons of ore with an estimated 12.3 million tons of copper and 22 million ounces of gold. The Duddar Lead-Zinc Project in Lasbela is another significant initiative, holding 1.7 million tons of lead and 2.5 million tons of zinc.
Balochistan also contributes more than 50% to Pakistan’s total chromite production, with estimated reserves of around 2 million tons. In terms of energy minerals, the province hosts over 217 million tons of coal in areas such as Duki, Mach, and Harnai. Iron ore reserves in Dilband alone are estimated at 165 million tons, which, if developed, could significantly reduce Pakistan’s reliance on iron imports.
Beyond metals, Balochistan is a leading producer of marble and dimension stones, including the internationally renowned Ziarat White and Black and Gold types. Marble reserves exceed one billion tons, while barite reserves are estimated at over 1.5 million tons, accounting for 90% of Pakistan’s total barite production. Other significant non-metallic minerals include gypsum, fluorite, and magnesite, each with large commercial potential.
Despite enormous natural wealth, the provincial budget for fiscal year (FY) 2025-26 fails to reflect a focused strategy for the development of Baluchistan’s mineral and industrial sectors. The Balochistan government has announced a total budget of Rs. 1028 billion, including a Rs. 51.5 billion surplus, identified through austerity measures.
Rs. 81 billion has been allocated for law and order and Rs. 249.5 billion for development across 6,183 schemes. There is a glaring lack of dedicated investment in large-scale mineral extraction, processing zones, or infrastructure development in mineral-rich districts.
Provincial receipts are projected at Rs. 101 billion, with Rs. 801 billion coming from federal transfers. An additional Rs. 37.8 billion is expected from foreign-funded projects, and Rs. 24 billion from sui gas lease extension bonuses. Despite these revenues, the budget allocation does not prioritize geoeconomic zones or skill development programmes necessary to exploit the province’s vast natural wealth. Instead, the funds are spread across fragmented schemes, with limited economic multiplier effects.
The budget proposes Rs. 80 billion transfers to local districts and union councils and Rs. 23 billion for strengthening district coordination committees (DCCs). These measures are primarily administrative and social in nature. The government plans to create 4,188 contract-based and 1,958 regular jobs, but none of these are explicitly linked to the mining or industrial sectors. The lack of any allocation for mineral sector-specific training, industrial infrastructure, or foreign investor facilitation further reinforces the disconnect between Balochistan’s natural resource base and its budgetary priorities.
The Rs. 500 million Balochistan Climate Change Fund, though important, is insufficient given the scale of environmental challenges linked to mining and industrialization. Furthermore, the Public Sector Development Program (PSDP) has been expanded, its lack of emphasis on export-oriented mining, refinery plants, or strategic public-private partnerships diminishes its relevance to long-term economic transformation.
The 2025 Balochistan budget exemplifies a broader pattern of federal and provincial neglect toward Pakistan’s richest province in terms of natural resources. Moreover, revenues from federal transfers and natural gas royalties sustain budget surpluses, there is little reinvestment in the actual regions generating these revenues. Balochistan’s mineral resources remain largely untapped, and its people continue to suffer from poverty, unemployment, and underdevelopment.
The current budget fails to address critical challenges such as poor road and energy connectivity to mining districts, lack of geophysical survey data for investors, and the absence of modern logistics infrastructure to support exports. The government has also not committed to reviving or expanding Special Economic Zones (SEZs) in mineral zones, nor has it proposed reforms to simplify land leasing or licensing frameworks that currently hinder investment.
In addition to economic neglect, Balochistan continues to face deep-rooted governance and security issues. Law and order problems, political marginalization, and weak institutional capacity further compound the economic challenges.
Infrastructure in education and health remains dilapidated, thousands of youths remain unemployed due to the absence of meaningful vocational training and industrial employment. For charting a viable path forward, the government must adopt a three-pronged strategy, first, prioritize strategic investment in mineral extraction, processing, and value addition by creating industrial clusters around mineral zones. Second, launch a comprehensive infrastructure development plan targeting mining roads, power grids, and water supply in resource districts. Third, institutionalize public-private partnerships for geophysical surveys, mining technologies, and export marketing.
Balochistan has waited too long to reap the benefits of its natural wealth.
Without urgent, targeted, and large-scale investment, Balochistan will remain trapped in a cycle of extractive exploitation and systemic underdevelopment. The 2025 budget represents yet another missed opportunity to align policy with potential. What is needed now is not austerity but ambition, backed by political will and strategic vision.
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Dr. Ikramul Haq, Advocate Supreme Court, specializes in constitutional, corporate, media, ML/CFT related laws, IT, intellectual property, arbitration and international tax laws. He holds LLD in tax laws with specialization in transfer pricing.
He was full-time journalist from 1979 to 1984 with Viewpoint and Dawn. He served Civil Services of Pakistan from 1984 to 1996. He established Huzaima & Ikram in 1996 and is presently its chief partner. He studied journalism, English literature and law. He is Chief Editor of Taxation. He is country editor and correspondent of International Bureau of Fiscal Documentation (IBFD) and member of International Fiscal Association (IFA). He is Visiting Faculty at Lahore University of Management Sciences (LUMS) and member Advisory Board and Visiting Senior Fellow of Pakistan Institute of Development Economics (PIDE).
He has coauthored with Huzaima Bukhari many books that include Tax Reforms in Pakistan: Historic & Critical Review, Towards Flat, Low-rate, Broad and Predictable Taxes (revised & Expanded Edition, Pakistan: Enigma of Taxation, Towards Flat, Low-rate, Broad and Predictable Taxes (revised/enlarged edition of December 2020), Law & Practice of Income Tax, Law , Practice of Sales Tax, Law and Practice of Corporate Law, Law & Practice of Federal Excise, Law & Practice of Sales Tax on Services, Federal Tax Laws of Pakistan, Provincial Tax Laws, Practical Handbook of Income Tax, Tax Laws of Pakistan, Principles of Income Tax with Glossary and Master Tax Guide, Income Tax Digest 1886-2011 (with judicial analysis).
He is author of Commentary on Avoidance of Double Taxation Agreements, Pakistan: From Hash to Heroin, its sequel Pakistan: Drug-trap to Debt-trap and Practical Handbook of Income Tax. Two books of poetry are Phull Kikkaran De (Punjabi 2023) and Nai Ufaq (Urdu 1979 with Siraj Munir and Shahid Jamal).
He regularly writes columns/article/papers for many Pakistani newspapers and international journals and has contributed over 2500 articles on a variety of issues of public interest, printed in various journals, magazines and newspapers at home and abroad.
X (formerly Twitter): DrIkramulHaq
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Abdul Rauf Shakoori, Advocate High Court, is a subject-matter expert on AML-CFT, Compliance, Cyber Crime and Risk Management. He has been providing AML-CFT advisory and training services to financial institutions (banks, DNFBPs, Investment companies, Money Service Businesses, insurance companies and securities), government institutions including law enforcement agencies located in North America (USA & CANADA), Middle East and Pakistan. His areas of expertise include legal, strategic planning, cross border transactions including but not limited to joint ventures (JVs), mergers & acquisitions (M&A), takeovers, privatizations, overseas expansions, USA Patriot Act, Banking Secrecy Act, Office of Foreign Assets Control (OFAC).
Over his career he has demonstrated excellent leadership, communication, analytical, and problem-solving skills and have also developed and delivered training courses in the areas of AML/CFT, Compliance, Fraud & Financial Crime Risk Management, Bank Secrecy, Cyber Crimes & Internet Threats against Banks, E–Channels Fraud Prevention, Security and Investigation of Financial Crimes. The courses have been delivered as practical workshops with case study driven scenarios and exams to insure knowledge transfer.
His notable publications are: Rauf’s Compilation of Corporate Laws of Pakistan, Rauf’s Company Law and Practice of Pakistan and Rauf’s Research on Labour Laws and Income Tax and others.
His articles include: Revenue collection: Contemporary targets vs. orthodox approach, It is time to say goodbye to our past, US double standards, Was Due Process Flouted While Convicting Nawaz Sharif?, FATF and unjustly grey listed Pakistan, Corruption is no excuse for Incompetence, Next step for Pakistan, Pakistan’s compliance with FATF mandates, a work in progress, Pakistan’s strategy to address FATF Mandates was Inadequate, Pakistan’s Evolving FATF Compliance, Transparency Curtails Corruption, Pakistan’s Long Road towards FATF Compliance, Pakistan’s Archaic Approach to Addressing FATF Mandates, FATF: Challenges for June deadline, Pakistan: Combating the illicit flow of money, Regulating Crypto: An uphill task for Pakistan. Pakistan’s economy – Chicanery of numbers. Pakistan: Reclaiming its space on FATF whitelist. Sacred Games: Kulbhushan Jadhav Case. National FATF secretariat and Financial Monitoring Unit. The FATF challenge. Pakistan: Crucial FATF hearing. Pakistan: Dissecting FATF Failure, Environmental crimes: An emerging challenge, Countering corrupt practices .
X (formerly Twitter): Adbul Rauf Shakoori
The recent publication, coauthored by these writes is
Pakistan Tackling FATF: Challenges & Solutions, available at:
https://aacp.com.pk/book-detail/pakistan-tackling-fatf-challenges-and-solutions-35
https://www.amazon.com/dp/B08RXH8W46