In his first visit to Gilgit-Baltistan (GB), Prime Minister Raja Pervez Ashraf has allocated Rs 2 billion to address the financial and administrative problems afflicting the area. Generous as it is on the part of the government to recognise the financial needs of GB, mired in poverty and underdevelopment, the question remains where would this money come from? The government is already financially strapped and devising different solutions through tax reforms, borrowing, and trying to manage its financial obligations. The budgetary constraints revealed by none other than the IMF paint a grim picture, suggesting the overall budget deficit may rise to the unprecedented level of 11 percent of GDP in FY 2012-13. The first two months of the current fiscal year (July-August) have already registered a budget deficit to the tune of Rs 191 billion or 0.8 percent of GDP. On the other hand public sector debt already stands at 10 percent of GDP and with elections approaching, this and other debt burdens may reach new heights. Within this context, promising billions seems difficult to envisage, even if concessions are made for a maiden visit by the prime minister to GB. During his visit, the prime minister performed the groundbreaking of the realignment of a 22-km section of the strategically important Karakoram Highway (KKH) and inaugurated the $ 510 million upgrading of a 110-km road from Raikot to Khunjerab. Addressing a joint session of the GB Legislative Assembly and Council, the prime minister assured the people of the region of the government’s seriousness in providing basic facilities, including health and education, in line with other developed areas of Pakistan. He said that with the support of the people and the government, GB would be made a model region. Laudable as these sentiments are, the jury is out whether the government has the financial wherewithal to follow through on its promises.
Indeed, GB is in need of financial assistance to overcome its myriad problems. However, there are also some political issues that if solved could bring favourable changes in the political and social environment of GB. It goes without saying that the revenue generated by the KKH, and the trading facilities so far enjoyed more by the businessman from other areas of Pakistan should be prioritised for the people of the region. Similarly the issue of provincial autonomy should be worked out in the real sense so that decisions are made locally. And last but not least, the recent emergence of sectarian killings in the area must be scotched. These steps could help lift many financial and political burdens from the shoulders of the people of GB. http://dailytimes.com.pk/default.asp?page=2012\09\30\story_30-9-2012_pg3_1
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