The 7th National Finance Commission (NFC) Award, signed in 2009, marked a significant shift in Pakistan’s resource distribution mechanism. Moving away from the population-based criterion, it introduced the Multiple Indicator Criteria (MIC), incorporating factors like poverty, revenue generation and inverse population density. This redistribution was essential during Khyber Pakhtunkhwa’s (KP) fight against terrorism, with the province suffering from relentless attacks. The 7th NFC Award introduced a special 1% “grant for the war on terror” for KP, providing resources to rebuild and counter insurgency operations.
KP faced massive infrastructure destruction and economic loss due to terrorism since 2004. Counterterrorism operations consumed much of the provincial budget, hindering social development. This grant helped KP manage its security operations while supporting post-conflict rehabilitation. Over the years, security in KP has improved due to military operations like Zarb-e-Azb and Radd-ul-Fasaad. However, despite these gains, sporadic threats persist and KP’s need for a substantial counterterrorism budget has decreased.
Meanwhile, Balochistan now faces a growing insurgency, primarily driven by political grievances and resource exploitation. The situation has worsened, with Balochistan seeing an alarming rise in terrorist activities. This insurgency has destabilized the province, impacting both its security and socio-economic conditions. The conflict has escalated, partly due to external actors with vested interests in the region’s geopolitical importance. Balochistan now sees a significant rise in terrorist incidents, including attacks on security forces and infrastructure projects, including the China-Pakistan Economic Corridor (CPEC) routes.
The increasing instability in Balochistan, evidenced by 451 terrorism-related incidents in 2024 alone, demands immediate attention. Despite facing ongoing security threats, Balochistan has not received comparable financial support to KP for counterterrorism efforts. KP’s share of the NFC grant should be reassessed, considering Balochistan’s current security challenges. The ongoing insurgency, exacerbated by underdevelopment, has led to a feeling of alienation among the population, further fueling extremism.
Reallocating resources to Balochistan would ease its economic burden, enabling the provincial government to invest in development, education and healthcare. This would help address underlying grievances and provide opportunities for youth, reducing the appeal of extremist ideologies. With its geostrategic importance, Balochistan’s stability is critical to Pakistan’s overall development. Ensuring that Balochistan receives adequate financial resources will not only contribute to the province’s security and development but also strengthen the nation as a whole.
It is time for a reassessment of national priorities to ensure that all provinces, particularly Balochistan, are equipped with the resources needed to overcome their challenges, address grievances and foster sustainable development and long-term stability.
—The writer is associated with Balochistan Think Tank Network (BTTN), Quetta.
