The federal government has allocated Rs230 billion in the 2025-26 budget to fast-track development in Balochistan, announced Federal Minister Ahsan Iqbal. The flagship N-25 Chaman-Quetta-Karachi highway will receive Rs100 billion, transforming it into a strategic trade corridor within 2-3 years. Additional funds will accelerate the M8 route and other regional infrastructure projects to improve connectivity and attract investment.
Highlighting India’s attempts to weaponize water, Iqbal stressed the urgency of completing Diamer Bhasha and Mohmand dams, which will add 7 million acre-feet of storage capacity. These projects aim to counter potential disruptions to Pakistan’s water supply under the Indus Waters Treaty while addressing chronic shortages.
The minister acknowledged that Pakistan’s development budget has shrunk to 0.8% of GDP—down from 2.6% in 2017-18—due to economic constraints. To sustain growth, the government plans to increase the tax-to-GDP ratio to 16%, matching regional standards. This shift is critical to funding future projects without relying heavily on external borrowing.
The initiative aligns with PM Shehbaz Sharif’s directive to treat Balochistan’s development as a national imperative. By improving infrastructure and water management, the government aims to reduce regional disparities and strengthen Pakistan’s economic resilience. However, success hinges on efficient execution and sustained fiscal reforms.