The development of Gwadar as mother port is the special focus of the budget 2003-04 and the government has declared it as a special economic zone (SEZ). All imports coming through this zone would be exempted from customs duty and sales tax along with sufficient concessions on income tax.

The finance minister speaking at the post-budget press conference said the Gwadar Port Project being executed with the help of China was very important for Pakistan as well as for the development of Balochistan. He declared that Rs12 billion would be spent on road sector development which would include the Gwadar-Karachi, Gwadar-Khuzdar-Quetta-Chaman, Gwadar-Khuzdar-Ratodero highways, opening route to Afghanistan and the Central Asian Republics (CAR).

It is worth-mentioning that the government has specially focused Gwadar free port project in the budget allocating Rs1 billion for basic infrastructure facilities like roads, electricity, water etc.

The Asian Development Bank (ADB) has offered $200 million for construction of Kalat-Quetta and Quetta-Chaman roads linking Balochistan with Afghanistan besides major economic centres of the country. The ABD in consultation with the National Highway Authority (NHA) and the provincial government has agreed to allocate an amount of $50 million for NHA during this year and promised $150 million in the next year’s lending programme. There are reports that the ADB will provide support for carrying out the digital mapping of the NHA road network linking Gwadar to Afghanistan and Central Asian States under its regional technical assistance package.

It is ironical that for the past 50 years, no efforts were made to develop infrastructure in the province ignoring its vast economic potentials and geo-strategic location. Today, the decision makers in Islamabad are keen to make Gwadar mother port of the region, which requires handsome allocations for infrastructure development. There is a greater need to allocate significant resources for human development so that local people could benefit from the expected upsurge in economic activities in the province in the near future. The Gwadar master plan has recently been finalized and it has been decided to upgrade its airport conforming it to international standards.

It is worth mentioning that the vital sea-lanes, particularly shipping oil from the region to outside world pass by Gwadar and the completion of this port can bring about great changes in the development of this area. Excluding the Chah Bahar in Iran, Gwadar will be the only free port between Dubai and Colombo, which will provide container storage and warehousing facilities.

The ADB already earmarked $500 million for the construction of the ECO Highway linking Gwadar with Turkmenistan. Around $300 million will be spent in Balochistan and the remaining fund in Afghanistan and Turkmenistan. The experts are busy in deciding the route from where the ECO Highway will pass providing an outlet to the land-locked countries of Central Asia and the Russian federation. The President, General Pervez Musharraf, during his recent visit to Moscow, made an offer to the Russian Federation opening up its southern flank for trade and commerce.

The development of road links between Gwadar and the Central Asian States and also China’s Xingjiang province will give distinction to Gwadar Port of becoming the nearest mother port in the region. Work on Mekran Coastal Highway Project is in full swing and it would be complete in three years. Basically the coastal Highway would link up both the Gwadar and Karachi ports accelerating the pace of development.

It may also be said here that the area is famous for the world’s finest varieties of prawns, lobster and fish and therefore the SEZ would provide special attraction for investors in processing, preservation, packaging and export of seafood. Further, the adjoining area is famous for good quality dates, more than 130 varieties, and the industry for processing and export of food items can find the SEZ a viable place for establishment.

The ECNEC recently approved the up-gradation of Gwadar’s airport at the cost of Rs480.125 million making Gwadar deep-sea port a real hub of industrial and economic activities.

The human resource development in the province is the key area that requires immediate attention of the rulers. Without human resource development,the fruits of developments would not be available to the people in terms of jobs.

The fact of the matter is that the human capital is the primary asset and its development is of key importance in alleviating poverty. Therefore, long term sustainable growth and poverty reduction objectives are linked to significant investment in human capital.An integrated approach is needed to improve quality and access in the key areas of literacy and primary education, primary health care and economic empowerment.