WHEN Dr Abdul Malik Baloch was elected chief minister last year to head another coalition government in Balochistan, he made two important commitments. He promised to take effective measures to improve the security conditions in Balochistan and to revamp the provincial economy through reforms in public finance and development investment. Last year’s budget clearly indicated his fiscal and development choices. The new budget announced on Thursday builds upon those choices with the objective of turning Balochistan into a ‘peaceful and economically self-reliant place’. Resource constraints notwithstanding, the budget proposes a significant increase in expenditure on law and order. After all, economic reforms don’t work in an insecure environment.

The document tries to hold down its non-development expenditure despite the pay and pension raise allowed to provincial employees and saving previously federal funded 12,000 jobs of teachers and lady health workers. Most importantly, it not only boosts its development investment but also makes substantial allocations for priority social sector areas (education 23pc, health 8.6pc) and production and road communication sectors. If implemented, these policy choices must bring about a discernible change in the provincial economy, attract private investment and improve the quality of life.

But as they say it is always easier said than done. The province is facing financial constraints and its underdeveloped economy cannot generate enough revenues to help it fund higher development spending. There is a slight improvement in the law and order situation but expecting peace without addressing the burning issue of the missing Baloch and abandoning the ‘kill and dump’ policy is foolish. And last but not the least, we are unsure as to how much and how long the chief minister can ward off pressure from his coalition partners, especially the PML-N. The success of the new policies requires the unswerving cooperation of the federal government and the provincial PML-N leadership. So far the prime minister has backed him on many issues. But for how long and how much is the question.

Published in Dawn, June 21st, 2014