Fail Pakistan governments and under-development Gilgit-Baltistan

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

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

The residents depend on the government for jobs, education, transportation, and healthcare. Gilgit-Baltistan operates under a top-down decision-making process and does not collect taxes; it relies on federal funding, subsidies, and grants. Compared to the rest of Pakistan, this area has a relatively low level of corruption.

Gilgit-Baltistan possesses a significant hydropower potential of 40,000 megawatts (MW) but 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 needs, 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 obstacles 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, as its government does not collect taxes or generate its own revenue. Consequently, the GB government must seek approval from the federal government for even minor projects. Political conflicts among various parties at both central and local levels complicate the situation in GB. As a result, development projects may take several months or even years to initiate. 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 friend has 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 has installed smart energy meters in Gilgit-Baltistan, where most residents do not pay their power bills. This installation has enabled the Water and Power Department to monitor electrical consumption, leading to increased revenue for the GB government.

During his visit to Islamabad, he shared the bureaucratic challenges he encountered. He identified several potential hydropower sites in Gilgit-Baltistan and needed approval to establish contact with international companies. His goal is to export electricity to China, and he estimates that this initiative could generate monthly compensation of Rs. 300,000 for each household in GB.

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 restrict 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 attempting to enter the market.

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

Widespread corruption has led to dysfunction in nearly every public sector of 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 because of a lack of autonomy and the inability 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.

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