Balochistan govt Compromising natural resources

The provincial government of Balochistan has severely hampered the future development prospects of the province by issuing hundreds of Exploration Licenses to unskilled and non-professional individuals.
Sources informed Pakistan Today that the Mines and Minerals department of the provincial government has been issuing EL’s to non-professional persons, who in turn sell them to foreign investors, that are attracted in huge numbers by the natural resources of the province.
They further explained that today every inch of mining resources of Balochistan have been thrown away by the authorities. ‘One EL license costs Rs2.5 million, and if the government officials of the said department find the applicant financially strong they demand very high price for the license,’ sources informed.
They further said that the worst scenario is that EL does not allow the mining of the resources and commercial exploitation, but today most of the resources tapped, are being exported illegally in large quantities with the connivance of the mineral department.
This troubling situation has been resulting in plausible litigation being undertaken by the Pakistani courts, hence putting the development activity on a standstill. Despite this alarming situation the department continues blatantly with its corrupt practices. It is not taking the government into confidence that has persuaded many old mine owners to sell their resources to individuals and corporations with questionable backgrounds, from China and Italy, sources added. Ironically, selling of mines to foreigners through their local partners is being done in spite of the fact that Balochistan is considered a sensitive area. The law of the land requires proper security clearance for any foreigner who shows an expression of interest to work and invest in Pakistan.
However, the concerned government department, by charging hefty amounts from foreigners has given them a free hand to work and buy precious resources of the province, sources claimed. ‘This alarming situation is leading to the worst possible scenario for the future development of the region as most of the mine owners are removing the raw material without any value addition and without paying any taxes or royalty to the respective governments,’ sources added.
‘Just for the record, seven people sold their mines in the areas of Khuzdar and Lasbela with each mine fetching approximately $ 450 million,’ sources said. The indigenous people of different tribes in the province feel that many foreigners while taking advantage of this situation are out to further spoil the very future of the mineral sector.
‘These foreigners have started establishing private limited companies by providing funds to their local partners. And the government is not checking the source of the investments which are being poured in through illegal tracks, effectively bypassing law of the land,’ Akbar Ali from Khuzdar told while talking to Pakistan Today.
According to a rough estimate there are around 300 foreigners that are engaged in this business in Balochistan, he added. This grave situation was lately pointed out by the President Balochistan Economic Forum (BEF) Sardar Shaukat in a TV program saying that Balochistan’s resources should not be exploited like that, since mining happens to be a very professional field requiring expertise and huge capital. Both the federal and provincial governments should only give license to those companies that qualify strict requirements. ‘We don’t mind any company or individual coming to Pakistan but we want them to abide by the legal procedures of our country as they expect us to follow theirs,’ he added.
Sources further said that it is naïve of the Balochistan government in trying to promote the region by simply claiming that it is a resource-rich area, being completely oblivious to the fact that investment of around $ 1 trillion has been attracted by neighbouring Afghanistan for the same resources present in their areas on the underlying belt of Balochistan extending into Afghan territory.
Afghanistan has succeeding in attracting investment from the international community for its resources such as metallic/non-metallic high value silver, copper, chromite etc., which are found adjacent to Balochistan (on the same belt). The Balochistan government on the contrary is busy selling ELs to non-professional persons through illegal means, sources added. ‘JP Morgan is leading from the front in Afghanistan but in Balochistan the government has created a mess affecting the future development of the mining industry resulting from the politicization of the resource rich sector, as some 300 unskilled and nonprofessional individuals got ELs from the provincial government bypassing all rules and regulations,’ sources explained.
Similarly, General Secretary of All Pakistan Mine Owners Association Ghulam Sabir, while talking to Pakistan Today said that it is unfortunate that the whole world including India is trying to take over the precious resources of Afghanistan, while we possess the same level of resources in Balochistan, that are going untapped. ‘A large delegation of Indian mine owners recently visited Afghanistan for future investment in the mining sector, and it is quite disappointing that Pakistan has not learnt lessons from the Indian initiative,’ he said, adding that the worst scenario today is that many oprecious mines have faced litigation as ELs are not given on meritorial basis while they are cancelled many times due to political pressure.
To a question he said, the only solution to this quagmire is that Balochistan should also make the investors abide by our rules and regulations and every investment should be monitored properly.
It is pertinent to mention that considering the failure of private sector the military establishment has played a vital role in developing the rich ‘chamalang’ coal reserves and establishing a mine and institute in Lora Lai area.