Balochistan package: PC proposes allocation of Rs 31 billion for 36 projects

ZAFAR BHUTTA

ISLAMABAD (December 12 2009): The Planning Commission has proposed allocation of Rs 31 billion under the Balochistan package, which is Rs 7.8 billion less than the package allocated for the Prime Minister's constituency, Multan, informed sources told Business Recorder on Friday. The Planning Commission has finalised a list of 36 projects valued at Rs 31 billion under the Balochistan package.

This list will be submitted to Central Development Working Party (CDWP) for approval and recommendation to the Executive Committee of the National Economic Council (Ecnec). The special meeting of CDWP was scheduled to meet on December 9, but was postponed as the venue of the meeting was changed from the Planning Commission to Balochistan.

"We are waiting for clearance from the Balochistan government to convene a special meeting of CDWP," sources said, adding that the Prime Minister would also participate in the meeting. The Federal government intends to signal the Federation's commitment to the development of Balochistan province and its people.

The Rs 31 billion Balochistan package compares unfavourably with the Rs 38.180 billion allocated for Multan. Under the Multan package, Rs 13.2 billion funds will be released during the 2009-10 fiscal year. The Larkana package is valued at Rs 9.6 billion and the government has already allocated Rs 2.1 billion during the current financial year, said the sources.

Under the Balochistan package, the Planning Commission identified five projects in food and agriculture, one in education, 12 projects in industry and commerce, four projects in physical planning, 14 projects in transport and two projects in the water sector.

In mining sector, the CDWP will consider Reko Diq gold and copper, costing Rs 5.892 billion with foreign exchange component of Rs 2.947 million. According to joint venture agreement of Reko-Diq project, Chilean mining company, Antofagasta, and Canadian company, Barrick Gold, jointly hold 75 percent and the Balochistan government 25 percent shares.

The two foreign companies estimated an investment of five billion dollars over a period of five years with an investment of one billion to three billion dollars in the first phase to produce 72, 000 tons of copper per annum. After full commissioning of the project, the annual export of copper is forecast at 400,000 tons.

The Planning Commission focused on development of road infrastructure that is considered essential to boost trade activities in Gwadar Port. The CDWP will consider construction/upgradation of Dirgi-Shabozai (N-70) to Taunsa project, costing Rs 7.478 billion; reconstruction of the 110-kilometre- long National Highways N-30 worth Rs 4454.631 million; and construction of Sibbi-Dhadar section costing Rs 1,008.8 million.
The other projects include: construction of Kanj irrigation scheme in Mawand area of district Kahlu worth Rs 16.437 million; six dispersal structures on Nario river-Phase ii worth Rs 1.172 billion; and construction of Ghazi Khokhor dispersal structures costing Rs 859 million.

In food and agriculture sector, fisheries sector has been given more importance and "strengthening of fisheries infrastructure along Sindh and Balochistan" worth Rs 1,999.64 million will be tabled before the CDWP. Balochistan province is rich in oil, gas and mineral reserves and the CDWP is likely to approve "acquisition of three drilling rigs for Geological Survey of Pakistan" costing Rs 238.561 million..