Balochistan budget

The country’s final provincial budget is in. On Tuesday, the PPP-led coalition government in Balochistan presented a surplus budget for FY2025-26, with a total outlay of Rs1,028 billion. This is reportedly a record outlay, which is appropriate considering the province is the most socio-economically deprived in the country, with an estimated 70 per cent of its population living below the poverty line, and faces mounting security issues. But, for all its problems, Balochistan might also be Pakistan’s most strategically important province given its location and mineral wealth. In this context, solving Balochistan’s issues is of crucial importance and the budget seems to recognise this imperative. Rs249.50 billion has been allocated for the Public Sector Development Programme which would be spent on new and ongoing schemes. Major initiatives include improving basic infrastructure in far-flung and backward areas of the province, pre-emptive measures to deal with emergency situations, introduction of modern reforms, strengthening of the social sector, steps for social protection, creation of job opportunities and restoration of complete peace. Rs18 billion has been allocated for the installation of Safe City projects in eight more cities and the law-enforcement agencies have been exempted from a ban on the purchase of new vehicles. Law and order, in general, has received an allocation of Rs83.7 billion.

In terms of non-development expenditure, the school education sector has been allocated Rs101 billion and higher education Rs24 billion, health Rs71 billion, agriculture and irrigation a combined Rs22.07 billion, local government and rural development Rs42 billion, communication and works Rs17.48 billion, public health engineering Rs11.2 billion, fisheries and coastal development Rs2.19 billion, sports and youth affairs Rs2.44 billion and the food department Rs1.19 billion. The budget also includes the creation of over 4,000 contract-based jobs and nearly 2,000 permanent positions for the next fiscal year to address youth unemployment. To pay for all of this, government officials have reportedly said Balochistan will receive Rs801 billion as its share from the divisible pool and come up with an estimated Rs101 billion from provincial sources. Whether the promised expenditures will materialise or if they will be enough to make meaningful progress against Balochistan’s many problems remains to be seen. That being said, it is perhaps the province under most pressure to deliver.

The mismanagement and corruption that have plagued the Balochistan government over the years have exacerbated its development problems and that, in turn, has played a role in fuelling the separatist terror groups operating there. Giving the people of the province a reason to believe in the state, particularly young people, as absolutely vital to turning the security situation around. In this sense, the pressure is also on the centre to ensure that it does not leave the province hanging and gives it what it needs to meet its goals. Given the tremendous potential Balochistan has to make a positive contribution to the country, its current state is an enduring indictment of how it has been run at both the provincial and federal levels over the years. What, on paper, ought to be the country’s richest province, at least in per capita terms, is somehow the poorest. One hopes this budget is a step towards turning things around.