Government Intervention and its Spillover Effects

One of my cousins is a Chief Executive Engineer for Pakistan's Water and Power Development Authority (WAPDA), currently working in Gilgit-Baltistan (GB). He recently submitted a proposal to Pakistan's Ministry of Planning and Development. He shared insights with me about the political and bureaucratic challenges in the country. I would like to provide the reader with some background information on this topic.

My cousin is a dedicated individual who aims to improve the lives of underprivileged people in Gilgit-Baltistan. Due to a lack of self-determination, GB is an impoverished region in Pakistan. The area is rich in natural resources, which are vital for the livelihoods of its residents. The local population relies on various industries, including mining, tourism, fishing, agriculture, fruit production, and handicrafts. These sectors serve as the primary sources of income for most people in the region.

People rely on the government for jobs, education, transportation, and healthcare. The territory lacks self-determination and operates under a top-down decision-making process. It does not collect taxes and depends on federal funding, subsidies, and grants. Compared to Pakistan, this area has a relatively low level of corruption.

Gilgit-Baltistan has a significant hydropower potential of 40,000 megawatts (MW), yet it currently generates only 133 MW. This limited energy production is a critical issue for the region's 1.8 million residents. Pakistan as a whole is grappling with an electricity crisis and relies heavily on imported fuels to meet its energy demands, which places a considerable strain on the country's GDP. Harnessing Gilgit-Baltistan's hydropower potential could help alleviate Pakistan's energy challenges and strengthen its foreign exchange reserves. However, the region faces challenges such as a lack of self-determination and bureaucratic hurdles. There are 278 potential project sites in Gilgit-Baltistan that, if developed, could increase the total installed capacity by 21,125 MW.

The federal government of Pakistan provides funding to Gilgit-Baltistan (GB), as the GB government does not collect taxes or generate its own revenue. Consequently, the GB government must seek approval from the federal government even for minor projects. Political conflicts among various parties at both the central and local levels further complicate the situation in GB. As a result, development projects can take several months or even years to be initiated. The GB government often encounters obstacles in obtaining consent from the Planning and Development Department and the Ministry of Kashmir Affairs. Projects may stall or fail altogether if politicians or bureaucrats do not receive their expected benefits.

My cousin visited officials from various ministries in Islamabad to discuss his proposal with the federal government. He has been working on this initiative for an extended period and presented it during his meetings. He is a capable individual who installed smart energy meters in Gilgit-Baltistan (GB), where most residents do not pay their power bills. This installation has helped the Water and Power Department monitor electrical consumption, and as a result, the department now generates the majority of the income for the GB government.

He shared the bureaucratic challenges he encountered during his visit to Islamabad. He identified several potential hydropower sites in Gilgit-Baltistan (GB). All he needed was approval to establish contact with international companies. His goal is to export electricity to China. He estimated that this initiative would be profitable for the people of GB, as each household could receive Rs. 300,000 per month in compensation.

The interests of the ruling parties and bureaucracy often lead to the stalling of numerous initiatives. The federally controlled Water and Power Department (WPD) aims to maintain its monopoly and restricts competition from the private sector. The National Electric Power Regulatory Authority (NEPRA) serves as Pakistan's primary power service provider and holds a monopoly on the construction of infrastructure for electricity distribution. This monopoly creates significant barriers for other businesses trying to enter the market. 

The government of Gilgit-Baltistan (GB) needs to develop infrastructure to export energy to China. However, the entrenched interests of NEPRA and WPD impede this progress, preventing the GB government from entering into open contracts to develop necessary infrastructure.

Widespread corruption has led to the dysfunction of nearly every public sector in the country. Due to the weak rule of law, politicians and bureaucrats exploit public funds and power for personal gain.

Gilgit-Baltistan struggles to launch public welfare projects due to a lack of autonomy and the ability to manage its own affairs. The political turmoil and corruption within Pakistan's government exacerbate these challenges. The ad hoc government in Gilgit-Baltistan follows directives from the central government and the army, failing to address the concerns of the local population. Since gaining independence in 1947, the region has faced ongoing issues regarding self-determination and individual rights. Political and administrative obstacles have stunted the development of Gilgit-Baltistan. While some capable individuals seek to bring about change, power struggles between the civilian administration and the army continue to hinder progress in Pakistan.

 

 

Nayyar Abbas's passion is writing. He earned a bachelor's degree in Economics and Political Science and a master's in Development Studies in Peace and Conflict. He writes about economics, politics, religion, philosophy, and peace. His aim is to highlight classical liberal ideas of economics, politics, and identity changes in a fast-transforming world.

Comments

Post a Comment

Popular posts from this blog

Is Iran an ungrateful nation?

Image
On December 2, 2025, I flew to Tehran, Iran, for a tourism trip with two friends. We took a five-hour flight from Islamabad to Tehran. Upon arriving at Tehran Airport, we exchanged some dollars for Iranian rials and took a taxi to the city center.  Imam Khomeini International Airport , Tehran At the Tehran Grand Bazaar , I experienced a different side of Iran. I learned that the country has been under the control of the Islamic clergy since the revolution in 1979 . The people of Iran have been compelled by the clergy to follow a strict Islamic code of conduct, which includes wearing veils in public, a ban on music in taxis and shops, restrictions on the sale and consumption of marijuana, and limited freedom of movement. Golestan Palace, Tehran, Iran I was informed that the clergy has hindered the economic, social, and cultural well-being of the people. Iran suffers from unpaved roads and inadequate infrastructure. Cleanliness is lacking, food is often unhygienic, and homelessness i...
Read more

Protest in the Sost Dry-port

Traders and people have been protesting for more than a month at the Sost dry port. On September 23, 2025, the Federal Government of Pakistan, the Gilgit-Baltistan government, and the traders' association agreed to end the protest, and it was decided to allow the people of Gilgit-Baltistan to trade up to 4 billion PKR with tax exemption. The agreement hasn't addressed structural challenges. This agreement opens the door for mega corruption, which has been widely practiced at the Sost Dry Port. It allows customs authorities and traders to manipulate tax exemptions. The people of GB demand two things: either they are integrated into the constitution of Pakistan as its fifth province, or there will be no tax on their business and income.  GB does not enjoy equal rights, and it is not a constitutional province of the Islamic Republic of Pakistan. It has been inaccurately associated with the Kashmir issues. Since 1947, GB has been governed by a primitive governance structure, where ...
Read more

The global consequences of the American war on Iran.

The world is on the brink of another global conflict. On February 28, 2026, the United States and Israel targeted Iranian Supreme Leader Ali Khamenei at his residence in Tehran. This war has escalated to unprecedented levels. Ali Khamenei was not only the supreme leader of Iran but also an Islamic jurist for many Muslims, particularly Shia Muslims around the world. His assassination has triggered waves of violence globally. In Pakistan alone, more than 25 people have died in attacks on U.S. embassies, UN offices, and other related infrastructure.   Shia Muslims believe that their Twelfth Imam, Muhammad al-Mahdi , is in occultation, which means he went into concealment by God's command in 260 A.H., and is alive, overseeing the world until he reappears to establish justice. In his absence, a Faqih carries out religious and political duties. A Faqih is a qualified Islamic jurist. The concept of Wilayat al-Faqih , or Guardianship of the Jurist, has emerged to facilitate the leadership ...
Read more