Mineral-rich Balochistan still need to be explored.

Byline: Khalil Ahmed

A conversation with Sardar Shoukat Popalzai - President, Balochistan Economic Forum

Profile:

Sardar Shoukat Popalzai is President of Balochistan Economic Forum. The Balochistan Economic Forum is think tank-cum-business and Economic policy advocacy forum, established in the Year 1992 and presently striving for the economic development and attracting Investment in the province of Balochistan. The Balochistan Economic Forum has been designed to familiarize the national and International economic community with opportunities for Trade and Investment in the province of Balochistan. Since its inception, the Balochistan Economic Forum has played an important role in attracting foreign investments in the province of Balochistan and it continues to be the main powerhouse behind integrating foreign investment and has completed 29 years of its meritorious services this year.

PAKISTAN and GULF ECONOMIST had an exclusive conversation with Sardar Shoukat Popalzai regarding resources in Balochistan. Following are the excerpts of the conversation:

According to the Geological Survey of Pakistan, Balochistan has more than eighty mineral resources with significant deposits. Some have been discovered, while most remain waiting to be explored. Reko Diq Gold mines of Balochistan valued at $260 billion and could be worth $1 trillion, considered to be one of the world's biggest copper and gold mineral zone with an estimated 5.9 billion tonnes of ore grading 0.41 per cent copper and 41.5 million oz (ounce) of gold reserves.

In developing countries, mining areas generally have more poverty than other areas, which usually causes conflict and strife in those areas. In developed countries, due to widespread development and a lack of disparities, these problems are almost non-existent. These countries, on the other hand, have developed formulae, structures and mechanisms to deal with those areas which encounter similar problems. Unfortunately, the locals are not compensated adequately through a formal compensation mechanism. Local identities such as tribal ones are real, while provincial and federal boundaries and identities are political.

What happened to Reko Diq may partly be ascribed to confusion and malpractices in awarding the contract, the second issue is having a higher share in income beyond royalties, and the third is the share of the locals/tribes vs provincial interests. The mineral sector could not be developed also due to security and...