Business Recorder Editorial March 13, 2020

An unnecessary controversy

On March 4, 2020, Prime Minister (PM) Imran Khan, during an address at an event in Islamabad, let slip a remark that Pakistan would repay its mountain of debt through selling the gold extracted from Reko Diq in Balochistan. This has aroused a delayed irritated response from the government’s allies in the National Assembly on March 10, 2020. Aslam Bhotani, an independent MNA from Balochistan, on a calling attention notice, raised the issue. Mr Bhotani supports the Pakistan Tehreek-i-Insaaf (PTI) government but where an issue concerning his home province was concerned, he could not restrain himself from voicing his concern at the PM’s remarks. He lamented that Balochistan, despite being a resource-rich province, continued to face problems and deprivation. He reminded the house that Sui gas was discovered in 1952 but even today not more than 10 percent of the people of Balochistan have it. Further, he continued, the province only got two percent share of the Saindak gold-copper project with 48 percent going to the federal government and 50 percent to the Chinese company running the project. Bhotani also alluded to the fact that Balochistan produced 2,000 MW electricity against its requirement of 1,200 MW but it received only 600-700 MW, leading to 12-14 hours load shedding in many areas. He concluded by underlining that Reko Diq belonged to Balochistan and its youth would not tolerate any (further) injustice, pointing out that Balochistan was neither a derelict province nor for sale. Similar concerns and sentiments were voiced by some other MNAs from Balochistan. Sardar Akhtar Mengal, head of the Balochistan National Party-Mengal that is an ally of the government, observed that no answer to the PM’s remarks was forthcoming. He questioned whether the statement was not against the 18^thAmendment. Mengal’s bitterness was obvious as he recounted how Balochistan’s resources had been blatantly looted and asked rhetorically whether the province was seen as a conquered area. He pointed out that Rs 300 billion reserves of gold and silver from Balochistan were extracted and sold but the province only got a paltry two percent share of this treasure. He said Article 158 of the Constitution, which gives priority to the needs of the province in which a gas wellhead was located, continued to be violated. It was left to Parliamentary Secretary Khiyal Zaman and Minister for Parliamentary Affairs Ali Mohammad Khan to attempt to smooth the ruffled feathers of the government-allied Balochistan MNAs. The former ‘conceded’ the right of the provinces over their resources under the 18^thAmendment. The latter said the PM wanted to rectify the mistakes of the past and was a strong believer of provincial autonomy and the rights of the weaker provinces. Whether this will prove sufficient to calm down the irritated government allies only time will tell.

It could be that PM Imran Khan is not fully cognizant of the sensitivity of issues surrounding Balochistan’s natural resources. Amongst other grievances, this one has a long history dating back to the early years after independence. In the government’s own interest, perhaps the PM should invite experts to fill in the gap in his knowledge on this touchy issue so that such unnecessary controversies are avoided in future. Having said that, it is also bewildering that PM Imran Khan is dreaming of the riches to be reaped from Reko Diq at a time when the issue is before the International Centre for Settlement of Investment Disputes (ICSID). On July 12, 2019, the ICSID had awarded the Tethyan Copper Company a whopping $ 5.97 billion ($ 4.08 billion penalty, $ 1.87 billion interest) for terminating its Reko Diq mining contract. Pakistan is bending its back to obtain a continuance of the stay granted by the ICSID on enforcement of the $ 5.97 billion award. Until the issue is settled at the ICSID, dreaming of riches from Reko Diq is pie-in-the-sky. In fact it is a nightmare. PM Imran Khan has a thin majority in the National Assembly. He needs his allies to ensure his government is not deprived of even this razor-thin advantage. All the more reason not to indulge in kite-flying that unnecessarily irks allies and in any case is premature in the face of the ICSID proceedings.