Balochistan— economic hub of cooperation with Iran
Balochistan— economic hub of cooperation with Iran
Siddiq Baluch
Editor's Blog

QUETTA: Pakistan shares 900 kilometers long land border with Iran and the international border are completely peaceful and friendly without any major complaints from any side for the past seven decades. Baloch people are residing on both sides of the international frontier. Both the countries had no territorial dispute unlike Afghanistan. In a way divided families and tribes are settled in both parts of Balochistan retaining a congenial atmosphere in the whole region, barring minor or insignificant incidents, all by few individuals enjoying no support from their own people. It is the real basis for good neighbourily relations between Iran and Pakistan which must be developed and promoted further in the interests of the two peoples of the region.

QUETTA: Pakistan shares 900 kilometers long land border with Iran and the international border are completely peaceful and friendly without any major complaints from any side for the past seven decades. Baloch people are residing on both sides of the international frontier. Both the countries had no territorial dispute unlike Afghanistan. In a way divided families and tribes are settled in both parts of Balochistan retaining a congenial atmosphere in the whole region, barring minor or insignificant incidents, all by few individuals enjoying no support from their own people. It is the real basis for good neighbourily relations between Iran and Pakistan which must be developed and promoted further in the interests of the two peoples of the region.

There is an urgent need to further develop economic relations by enhancing the level of economic cooperation to an extent of integrating two regional economies of the area for the benefit of the people. Chah Bahar will prove to be a catalyst for development of Iranian Balochistan and Gwadar will play the same role in Pakistani part of Balochistan retaining their distinct identities under two separate Governments. Both the major ports in the region are already linked with a highway of international standard and sooner or later, the rail link between the two ports will also be established in near future boosting economic activities to an higher level.

Pakistan got the advantage of having a rail link between Quetta and Zahedan which can be linked with both the emerging ports of Chah Bahar and Gwadar boosting international trade with the whole world, mainly with the landlocked countries, including Afghanistan. At present, Karachi and Bandar Abbas are playing some role of connectivity with very long distances linking landlocked countries. Both Gwadar and Chah Bahar will reduce the distances by half once developed and made functional with full potentials reducing the cost of transportation in a big way.

It is not out of context to mention here that Iran is presently earning more than six billion dollars a year from transit trade facilities from Bandar Abbas and other ports. Now Iranian economists planned to boost this earning to 10 billion US dollar a year by full functioning of the Chah Bahar Port. Pakistan had no such plan to earn billions of dollars by providing transit trade facilities to the interested countries using Gwadar Deepwater Port.

Both Pakistan and Iran will draw big benefits in economic cooperation or integrating two regional economies by making significant investment in different sectors of the regional economies making them complimentary. There was a strong view among the Iranian officials to draw such long term advantages by integrating two ports and ultimately two economies.

Iran made frantic efforts for the past many decades to boost its trade with Pakistan, excluding Balochistan, and it failed merely because Pakistani officials were found least responsive to such demands from Iran. There are classic cases of Power and Natural Gas which is available at the Pakistani borders and the officials were found least interested to buy cheaper gas and electricity from Iran. The officials from Pakistan never came out with any reason why there is strong resistance in buying cheaper natural gas and electricity despite the fact Pakistan is facing energy crises in all parts of Pakistan.

The Government of Balochistan, as an agent of the Federal Government, should initiate economic cooperation with Iran on local basis inviting significant investment for development of local economy.

The economic cooperation should confine to investment in various sectors, including fisheries, agriculture, livestock, mines and minerals, establishing small scale industrial units and plants in Balochistan. Pakistan should seek a refinery from Iran for separation of gold from copper so that the job is done in Pakistan and the blister copper is not taken to China in bulk for this reason alone.

Similarly, the Government should operate the future Reko Dick Project in public sector barring all multi-national corporations from exploiting the riches of Balochistan to the disadvantages of the local people or the Government of Pakistan in general.

The Provincial Government should make significant investment for setting up factories, building boats for fishing, including deep-sea fishing, developing cargo vessels, promoting fish culture, shrimp farming and score of other sectors. Iran can help establish a number of cement factories, date-processing plants, carpet and rug weaving centres boosting employment opportunities in remotest parts of Balochistan.

There is a precedence that the Punjab Chief Minister, Mian ShahBaz Sharif, made a number of foreign visits to China, Turkey and other countries of the world and concluded agreements with the foreign countries seeking foreign investment, both direct investment and soft loan for economic projects in his province. In the same breathe the Provincial Governments in three other provinces got the similar rights to seek foreign assistance, soft loans, credits for economic projects in their provinces for which the Federal Government should provide permission, facilities and services to the more backward Provinces of Pakistan.

The Federal Finance Minister had virtually snubbed the former Chief Minister of Balochistan, Dr Abdul Malik Baloch, when he sought a special development package of Rs 500 billion for speedy development of Balochistan. Curtly he referred the Chief Minister of Balochistan to approach the Council of Common Interests for such help. In other words, the Finance Minister refused to help Balochistan in providing necessary fund for development.

The Chinese Government is establishing a technical training centre in Gwadar and the Chief Minister of Balochistan should approach dozens of friendly countries for similar help and they will definitely come forward to help Balochistan and its people. Iran can be the more reliable partner in development of this part of Balochistan. The past Governments in Pakistan did not respond positively about the massive financial and technical help to building the basic infrastructure in Pakistani part of Balochistan and consequently the Iranian Government dropped the idea to help Balochistan, mainly areas close to its borders.

The Provincial Government can prevail upon the Federal authorities for meaningful cooperation with Iran developing certain parts of Balochistan before launching the bigger project to integrate two regional economies for mutual benefit.