Development challenges in Gilgit-Baltistan
Written By : Amir Hussain
There are untold stories about
the plight of 1.3 million people of Gilgit-Baltistan (GB), who live in a
fragile environment at the mercy of nature. Beauty, peace, tranquillity and
serenity are the terms associated with this far-flung region of Pakistan. GB is
loosely defined as a centrally-administered, partially-empowered and
economically-dependent part of Pakistan. With all its natural endowments of
gemstones, and mineral and water resources, the area is one of the best tourist
destinations of the world.
According to a conservative estimate, GB has the potential to
generate annual revenue of $1 billion from its natural resources and tourism,
and fetch the annual revenue of $10 billion through renewable energy. On this
basis, GB is not only self-sufficient but also has the potential to become the
biggest revenue generator in the country.
With all its potential of prosperity, GB is marred by a
rent-seeking, corrupt and inept political system that runs through an inflated
bureaucracy and a disempowered local legislative assembly. The Empowerment and
Self-Governance Order 2009 defines the legislative, administrative and legal
functions of governance in GB – including the principle of separation of powers
among the local parliament, judiciary and bureaucracy. Although the 2009 order
gives authority of legislation to the local assembly on key subjects of
economic, political, cultural and legal affairs, it does not define the
processes which could determine the relationship with the federation vis-Ã -vis
financial planning.
There is no formula of resource allocation and distribution based
on the planning and recommendations of the local legislative assembly. Having
no provincial status within the constitutional framework, GB is not eligible
for the National Finance Commission (NFC) award. Since budgetary allocations
are predetermined and top down, they neutralise the impact of local
legislation. This top-down approach of political control has reduced the
capacity, power, will and commitment of the GB government to devise a
developmental roadmap for the region. Hence, there is a serious disconnect
between the GB government and the federal government on important matters
regarding regional development.
For instance, with the devolution of powers to provinces under the
18th Amendment, GB stands nowhere in the national development policy. Since the
region is not governed under the constitution, there are no empowering benefits
of the 18th Amendment for it. More importantly, after the devolution of powers
to provinces, the federal government does not seem to have any inclusive
political strategy of integrating GB into this devolved mode of political
governance. The GB government and various ministries of the federal government
have their own interpretations of role and responsibilities after the 18th
Amendment. There is no resource allocation formula as well as development
planning other than the transfer of funds to GB as a liability of the federal
government.
On the other hand, the 2009 order provides an elaborate formula of
functional distribution of administrative powers between federal and local
bureaucracy. It allows posting of 25 percent, 50 percent, 60 percent and 70
percent of federal officers of Basic Pay Scale (BPS) 17, 18, 19 and 20
respectively in GB’s administrative setup. Key positions like home secretary,
secretary planning, and development and secretary finance are assigned to
federal officers. This is an overly centralised power structure and more
disempowering than the governance structure of AJK. In AJK, only the chief
secretary, inspector general of police and accountant general of IGPR are
appointed from the federal government. This cumbersome and centrally-controlled
bureaucratic structure is the main impediment to the timely execution of public
services.
The current political and administrative setup lacks the
institutional arrangement of accountability, transparency and inclusivity on
important matters of public interest – ranging from financial planning to
merit-based hiring of staff on development projects.
There have been political appointments on key positions of
foreign-funded development projects. For example, the IFAD-funded Economic
Transformative Initiative (ETI) granted to the GB government is a five-year
integrated economic development programme of worth $120 million. The ETI shows
how political appointments result into inefficiency and corruption, and
collusion for evading monitoring and accountability. This project could bring
about transformative changes by establishing effective agricultural value
chains and land development programmes to help local farmers improve their
productive capacity.
The project has suffered due to the incompetence of management,
bureaucratic interference, lack of coordination between the project management
team and the planning and development department of the GB government. There
were 10 highly-qualified development professionals who applied for the position
of project coordinator and none were selected. The tests and interviews
conducted for the position of project coordinator were farcical and had no
technical content in line with the job description.
Delays and irregularities in the implementation of the project
show inadequate professional credentials of project management. The ETI is
being implemented through the Planning and Development Division in
collaboration with the project coordinator under the supervision of the chief
secretary of Gilgit-Baltistan. This is the largest foreign-funded development
programme in the region with the potential to provide entrepreneurial
opportunities and improve the standard of living. Nonetheless, the project has
not been able to meet its development targets. Fraught with delays in
implementation, the project does not have a strong quality assurance and
monitoring function to ensure transparency of fund allocation and its
subsequent utilisation.
The untapped development potential of this region is an
opportunity for investors in tourism industry, energy, minerals and border
trade. There are a number of young emerging entrepreneurs who need an enabling
business environment and business incubation support. While talented men and
women look for support, the GB government is busy doling out millions of rupees
to build political clout through the traditional class of traders and contractors.
Construction and development contracts are being granted to favourites in
violation of public procurement rules.
GB has the potential of generating 70,000 megawatts of renewable
energy from its hydrological resources, but most of its districts are plunged
in darkness. The most important touristic destinations, including Hunza and
Skardu, lack basic infrastructure to accommodate tourists. There is more than
16 hours of loadshedding on a daily basis in Hunza alone with unannounced power
outages adding salt to injury.
Last year, one million tourists visited the region despite the
fact that there was no incentive or facilitation from the GB government. Local
hoteliers and guest house owners used high power diesel and petrol generators
to make up for the lack of electricity. This was quite damaging to the natural
environment and exposed local residents to respiratory diseases. Most of the
tourists visited the Khunjerab Pass which was turned into a garbage site in the
absence of a solid waste disposal system in place.
Most of the communication infrastructure, including the
recently-upgraded Karakorum Highway (KKH), is deteriorating at a fast pace.
Passing through an ecologically fragile and mountainous region, the KKH needs
regular maintenance to ensure smooth transportation and commutation. The
contracting organisation responsible for the maintenance of the KKH does not
seem to have any interest in its work. If one travels through the KKH, he/she
will witness the story of inefficient maintenance and lack of monitoring and
accountability of contracting organisation on the part of the National Highway
Authority (NHA).
In the context of mounting development challenges, the sensible
policy option for the federal government is the integration of GB in the
national development programme under the constitutional framework. This will,
hopefully, bring about improved accountability, efficiency and political
empowerment.
The writer is a freelance columnist based in Islamabad.
Email: ahnihal@yahoo.com
