83819 Balochistan Consultations Report World Bank Group (WBG) Country Partnership 6WUDWHJ\ (CP6) 2015-19 Table of Content A. Introduction / Background B. WBG Presentation: CP6 2015 Roadmap and Emerging Priorities C. Summary of Discussion Points and Feedback Received I. Meeting with the Balochistan Governor II. Meeting with the Chief Secretary III. Meeting with Additional Chief Secretary and Team IV. Session with Civil Society, Academia/Think Tanks, Youth, Media V. Session with the Private Sector VI. Session with the Parliamentarians and Political Leaders of Balochistan D. Follow up / Next Steps Attachment: List of Persons Met Balochistan Consultations Quetta, September 23-24, 2013 World Bank Group (WBG) Country Partnership 6WUDWHJ\ (CP6) 2015-19 A. Introduction / Background 1. The CP6 consultation meetings with the Government of Balochistan and other stakeholders were held on September 23rd and 24th, 2013, in Quetta. The objective was to exchange views on the challenges and development priorities for the province for WBG support under its new five-year strategy. The WBG team met with the Governor Balochistan, the Chief Secretary, a team of key Secretaries of the Government of Balochistan led by the Additional Chief Secretary, Balochistan parliamentarians and politicians from the major political parties; representatives of civil society, non-governmental organizations, academia, and the private sector. Please see Annex I for list of participants in the consultations sessions. 2. Based on the feedback received from the government and other stakeholders, key priorities for Balochistan are emerging as: i. Conservation and efficient use of water: storage dams, modern irrigation techniques and agriculture/farming practices, recharging of ground water, availability/quality of drinking water ii. Renewable energy –solar and wind power iii. Social sectors: education, skill development of local population, health, and nutrition (particularly girls education, mother and child healthcare) iv. Connectivity and trade logistics: both inter-provincial and trade outside Pakistan around mining, fisheries, fruits / agri produce v. Transparency, accountability, anti-corruption mechanisms vi. Natural resource management: livelihoods, community participation and benefit sharing around the local resources; vii. Engagement of women and youth: as cross-cutting priority, and strategy to reduce risk of conflict in the province 3. Consultations at Quetta were part of the process of engagement to identify priorities for WBG support for the new five-year country strategy for Pakistan. Several meetings have taken place to date, including strategic level discussions with the Prime Minister, Federal Ministers of Finance, Planning and Development, Water and Power; meeting with the Economic Team including the Governor State Bank, as well as the Chief Ministers of the four provinces. For the federal government, AJK and GB counterparts, a technical level session was co-chaired by the Economic Affairs Division (EAD) where representatives from key ministries were invited. For the provinces, meetings were held at the provincial capitals of Sindh, Punjab, Balochistan and KP with the provincial administration under the leadership of Chief Secretaries or Additional Chief Secretaries. Separate sessions were also organized with FATA Secretariat. 4. In addition to the federal, provincial, and regional governments, the WBG has also reached out to a range of other stakeholders including parliamentarians and political leaders, academia, think tanks, media, civil society, youth groups and the private sector. Findings and outcome of these discussion sessions would be documented for record and shared with the participants. 5. As explained during the consultations process, while an effort will be made to take various views on board, some level of prioritization and trade-offs would have to be made as WBG would not be able to respond to all demands with its limited resources. We would need to exercise selectivity to seek visible impact and results. One important element of the WBG strategy would be to leverage the strengths of the private sector and other development partners to support the key priorities in Pakistan. The three 2 institutions of the World Bank Group will work together to bring value to the clients in Pakistan. The WBG includes International Development Association (IDA), the International Bank for Reconstruction and Development (IBRD), International Finance Corporation (IFC), and Multilateral Investment Guarantee Agency (MIGA). The IDA and IBRD work with the governments and provide concessional credits, grants, loans and knowledge support (analytical work and non-lending technical assistance). IFC provides advice and commercial loans to the private sector, while MIGA provides political risk insurance guarantees for private investment in the country. B. WBG Presentation: CP6 2015 Roadmap and Emerging Priorities 6. The WBG presentation focused on the process of CP6 development, timeline and the emerging diagnostic of challenges and opportunities for Pakistan. Key areas of reforms priorities for the country, as highlighted during various consultations, were also shared. 7. The CP6 preparation process includes two rounds of consultations with the federal and provincial governments and other stakeholders – the first one from July – October 2013 is for priority setting and the follow–up in February 2014 to validate the draft strategy. After EAD‟s clearance of the final draft, the CP6 would be presented to the WBG Board of Executive Directors in June 2014 and the implementation period of the CP6 would start from July 1st, 2014. The implementation plan includes regular performance/portfolio reviews, an annual exercise of results assessment and learning reviews;a mid-term progress report (half-way into implementation), and a full program evaluation at the end of the CP6 implementation period. This process allows for flexibility to review performance and results on an ongoing basis and make adjustments as necessary. 8. The priority setting process for the Country Partnership 6WUDWHJ\ starts with preparing a Systematic Country Diagnostic (SCD), an assessment of challenges and opportunities, and disseminating it early in the process of consultations. Based on the emerging themes or priorities, the areas of focus are identified and are clearly linked with the outcomes. The implementation plan is prepared separately providing details of interventions and programs to achieve the intended outcomes. 9. The initial diagnostic suggests that there are both challenges and opportunities for Pakistan that together with the key global trends, are influencing and shaping up the development landscape of the country. And if addressed in a systematic way, it can unlock the great potential for economic revival and growth and can create a path to growth and poverty reduction that is inclusive, equitable and sustainable in terms of employment generation, livelihoods and human opportunity for all. 10. Looking at the key global trends, one finds that the Official Donor Assistance is shrinking and more and more, these limited resources are being used to crowd-in private capital. Technology and innovation are driving development solutions and interconnectivity, e.g. increasing use of smart phones for monitoring and transparency, BISP smart cards based payment system in Pakistan. Besides, citizen‟s active engagement in development process is increasing, and climate change is driving development agendas in a major way. 11. Given this global context, Pakistan‟s economic growth and development is challenged by scarcity of financial resource and heavy dependence on external financing, slow progress on MDGs, rapidly increasing population and growing urbanization vis-à-vis limited resources and infrastructure, manifesting itself to an extent in the energy crisis and water scarcity that we witness today. Recurring natural disasters and deteriorating law and order and security environment are also holding back development in Pakistan. On the positive side, the recent democratic political transition, a geographic location with potential regional linkages, natural resource base, the ongoing devolution process, and the increasing working-age young and female population, are some key opportunities for Pakistan that can contribute to the economic 3 revival and growth in the country. It is important to recognize, however, that this cannot be done by the government and donors alone; private sector needs to be a partner in this process. And to facilitate private sector participation, improving investment climate and business environment remains the key. 12. In terms of key priorities for Pakistan, we have heard that job creation and employment generation remains an important goal for the country. There are several important ingredients to a successful job strategy but a central one is that it has to be private sector led for which conducive investment conditions are necessary. Another critical element is the human resource development. Pakistan would need an educated, skilled and healthy workforce for creating more and productive jobs and sustaining higher growth. 13. The Planning Minister, in the five-year plan for Pakistan, is focusing on indigenous / homegrown drivers for jobs and growth to minimize dependence on external factors. The initial set of priorities include raising own revenues for investments, improving investment climate for private sector, value chains for industry and agriculture products, and improving regional linkages for trade. The energy security, infrastructure upgrade, and building social capital remain key support areas for this agenda. 14. While human development is a central pillar of any jobs strategy, we have heard that on its own it remains a key priority and the government‟s focus on infrastructure should not be at the expense of human development. This calls for continued investments in education and skills, health and nutrition, income support and microfinance. 15. The third theme that has come out as priority is that of governance and anti-corruption reforms. There is an increasing recognition that support to devolution / local governments, addressing weaknesses in the public service delivery mechanisms, and promoting transparency would be required for sustaining any development gains in Pakistan. C. Key Discussion Points and Feedback Received 16. The discussion at the consultation sessions was focused around the following five questions to the participants. Session-wise summary of feedback at Quetta is provided below: i. Do you share similar diagnosis of the challenges, opportunities & priorities for Pakistan / Balochistan? ii. What should be the top three reform priorities for WBG to support? In order to be selective, what should the Bank do more of and less of? iii. What could be some of the success indicators / Results? e.g. number of jobs created, level of resources mobilized etc.? iv. What are the risks we need to mitigate in the strategy? v. How can we improve implementation? C-I: Meeting with the Balochistan Governor 17. The Governor mentioned that Balochistan has a small and hardworking population which is quite self-sufficient. He shared that natural resource management, particularly mining is a priority for the province. One specific area for support is the capacity to manage contracts and investments in the natural resource. 18. Water scarcity and mismanagement is highlighted as a major issue -- climate change, droughts and natural disasters have contributed to the water availability and quality issues in the province. The livelihoods of the Baloch people are dependent upon livestock and agriculture and water plays an important role in that. The traditional Karez system has been taken over by tube-wells leading to depletion of ground water. Increasing population shift to Quetta city is also resulting in urban water 4 supply problems. Small dams are important for Balochistan to address the water related issues. Positive impact of such dams is immediate and visible. 19. Balochistan has the lowest human development indexes in the country and high dropout rates. Education remains a key priority, particularly quality of education that could help children develop a curios and critical mind. People are ready and willing to invest in education, it‟s now a supply-side administrative management issue. An important factor to address drop outs is to consider use of local / regional languages. Quality of the curriculum and text books also needs to improve. It was stressed that because of scattered settlements, focus should be on residential colleges and schools with a possibility of starting them from primary schooling to ensure enrollment and attendance of both the students and the teachers. Lack of capacity and performance of the public sector managers of education sector also need attention. Similarly, health status of women and children (age 5 and below) need to improve; efforts are required to manage childhood diseases including polio which has resurfaced in Balochistan. 20. The Gwadar Port and Iran Pipeline are important initiatives for the province. For linking Balochistan to Central Asia and eventually to Europe is critical for exploiting the regional cooperation potential land equally critical is developing infrastructure to facilitate the passages. The World Bank can support in sharing expertise in international trade and development of special economic zones. Preservation and value chains for fisheries and shrimps can also aid in the economic growth and create jobs. Similarly developing the agricultural and livestock sector, particularly fresh and dry fruits, meat and wool for export could be a way to alleviate poverty; however a lot of focus needs to be on matching international standards. Another critical factor is availability and fair distribution of water. 21. The growing narcotics sector (due to water scarcity) and drug use particularly amongst the youth is becoming a huge challenge for Balochistan. The Afghan refugee centers also pose serious challenges to the development of the province C-II: Meeting with the Chief Secretary1 22. Government is currently finalizing its strategy outlining mid-to-long terms goals. The ACS and Secretary Finance outlined key features of Government‟s comprehensive development plan and strategy for Balochistan. The plan includes strengthening institutional arrangements for priority areas -- institutions such as the Balochistan Energy Company, Balochistan Mining Company, Balochistan TEVTA, Balochistan Revenue Authority, Balochistan Endowment Fund, and Balochistan Public Procurement Authority were highlighted as key institutions for the province being set up. Itwas suggest that WBG could consider assisting with capacity building of these institutions through knowledge sharing. 23. The Chief Secretary stressed that the political transition opens up new opportunities for Balochistan. The current coalition government has brought in a “middle class” leadership that has not been the norm in the province. All nationalist parties contested the elections and became part of the political process which is a positive change. 24. He shared areas of strategic importance and priority for Balochistan on behalf of the chief minister. The new leadership’s vision for Balochistan is to change the mindsets and to develop a tolerant and progressive society, which is at peace with itself across ethnicities; through investing in the social sectors and bringing in transparency in the government. Education and health are the priority sectors for the new Government. Accordingly, the budgetary allocations for education and health have been increased by six and three times respectively. The Chief Minister has also expressed his commitment to anti-corruption and transparency and accountability. 1 The meeting with the Chief Secretary, Balochistan was joined by the Additional Chief Secretary, Secretary Finance and Dr. Qaisar Bengali, the Advisor to the Balochistan government. 5 25. The 18th Amendment provides more autonomy to the provinces particularly in natural and mineral resource management. The priority of the new Government is full utilization of this mandate in collaboration with the Federal Government. The Gawader Port and Gaddani project are important initiatives where Balochistan government is partner with the federal government. The province would appreciate support from the WBG in terms of sharing of global knowledge and experience on benefit sharing of natural resources for the advantage of Balochistan‟s population. Balochistan would also like to improve regional trade linkages which are important for the development of the province. C-III: Meeting with the Additional Chief Secretary and Technical Team 26. The ACS and his team discussed government‟s plan to address energy and water shortages in the province as well as other priority areas for supporting the livelihoods and welfare of people of Balochistan. Challenges of service delivery are huge given the small and scattered settlements and limited connectivity. 27. The province is short of 1000 MW of power and load bearing capacity of transmission lines is low. Government is looking at renewable energy sources to bridge the energy gap –priorities include solar energy. WBG help and technical support is sought for solar and wind power initiatives. 28. Water came up as an all-encompassing issue – for purposes of drinking, agriculture/irrigation, livestock, industrial and construction use, health service delivery at the BHUs and hospitals -- reaching a critical scale and directly impacting life and livelihoods in Balochistan. Climate change and inefficient use of water resource are contributing factors. Ground water is rapidly depleting due to excessive use. There is a need to harness the flood water and build storage dams to have continues supply for agriculture and livestock during recurrent droughts. Farmers need to switch to crops that are less water intensive. WBG was asked to support feasibility studies of key water basins in the province to help in water resource management. 29. Social sectors – education, health and nutrition are highlighted as a priority of the new government. Budget allocations have been increased substantially. Serving the 22,000 scattered settlements is a big challenge -- spatial distribution of schools is skewed and delivery system remains weak. Approximately 3.6 million children are out of school, reducing this number could be one of the success indicators. Focus should be on involving communities for targeted development of schools. In addition, a high priority is developing technical and vocational schools for skilled labor. 30. Governance is the top challenge for the health sector. This is exacerbated as the vertical programs are decentralized when there is no capacity at the provincial level. Rationalization of workforce and improvement of facilities are much needed as most of the BHUs and hospitals do not have access to water or electricity. Solar based refrigeration system could be considered. Balochistan has the worst indicators of health, the IMR and MMR can be compared to those in Congo. Neighboring countries have seen marked improvements, whereas Balochistan has seen a decline. Security problems are also constraining access of health workers. The existing infrastructure need improvement -- mobile health units should also be considered for scattered population. Nutrition is a cross cutting area which needs to be tackled through collaboration of livestock and food departments. 31. Community supported development of local resources was also discussed. Balochistan has abundant resources -- province has 73 crops, provides 50% of Pakistan‟s sheep, 50% of camels and 45% goat, huge reserves of coal, oil, copper, chromite, marble, and granite. Fisheries are also an important production sector. Balochistan produces fresh fruits and dates of international quality that get wasted. Connectivity needs to also improve to support the communities through farm to market and rural roads and railways improvement. The WBG can help in the development of these resources through community involvement and skill development to support job creation. 6 C-IV: Session with Civil Society, Academia, Think Tanks, Youth, Media 32. A large group of representatives from civil society, academia and youth participated in the session. The participants asked for continued engagement of the WBG with the non-government stakeholders. Various perspectives on the role of civil society were discussed – some proposed a greater role to counter the leakages and inefficiencies of the government delivery systems. While there were other views on high transaction costs of the NGOs, advising to redefine the role of the civil society. There was concern that the civil society has been captured by an elite group of NGO‟s, which are disconnected from the local communities and are not focused on strengthening the grassroots institutions. Donors should avoid working with selected few NGO‟s and expand their engagements to those that have real presence at the grass root level. World Bank was also advised to think beyond PPAF and diversify to have engagements with the local communities. 33. A related point was on the sustainability of the development interventions and mobilizing communities around resources rather than short-term projects. Building capacity requires a long-term and sustained effort by all stakeholders. Donors have adopted ad-hoc approach that does not result in real- term sustainable capacity building and results of financing are not visible. When the project/activity finishes, community has no means to sustain its presence. A better targeted approach would be to mobilize communities around a resource such as water, minerals, etc. Only latter approach can create long-term sustainability for development in a challenging province like Balochistan. There is a need to teach people value of self –reliance and to be independent. 34. There was general appreciation of the new representative government in Balochistan and indications of its strong commitment to development of the province. The government has recognized the role of civil society but much more needs to be done to mobilize and re-energize them. Also, the local government system needs to be strengthened for differentiated strategies for different regions and needs- based engagement at the community level. For a province like Balochistan, given low population density and dispersion across vast land, local governments need to support and be part of development process. Government needs to embrace decentralization in its true letter and spirit and devote more resources to the union council level, focusing on the poorest and most backward regions. 35. Abuse of natural resources and lack of benefit sharing came out as major concern. Balochistan is the natural resource rich province of Pakistan – but it has become a threat instead of opportunity. Gains from the exploitation of natural resources have not benefitted the local community at all. This has led to general “mistrust‟ of Government in their usage. Government needs to involve private sector, farmers, civil society to help with regulation of resource use. Incentive structure needs to be properly aligned to promote PPP and foreign investment in this sector. Furthermore, it needs to be ensured that benefits from future exploration of provincial natural resources are visible and accrue to the larger segment of population. This would help address the resentment and security issues as well. 36. Jobs and livelihood opportunities can also be created around small mineral units at the community level. Microfinance with high exuberant rates is not a viable strategy to promote small and medium enterprises. Instead, Government needs to provide interest free loans to the honest village / community level groups. There is no baseline on local trades and livelihoods at union council level – this is important for planning purposes and to train people per local needs. 37. Water misuse / scarcity, power shortages and impact on livelihoods were mentioned as critical challenges facing the province. It has significant repercussion for livestock and agriculture sector, both of which are providing livelihood to around 70 percent of the population. There is an urgent need to promote efficient water crops, creating facilities to store flood water, building small dams, installing solar tube wells, and revisiting the incentives structure to avoid misuse of precious water resource. Linked to water, 7 issue of power shortages also came up repeatedly, its negative impact on agriculture and disruption in daily lives. 38. It was mentioned that World Bank‟s comparative advantage is in supporting strategic reforms – support should be provided to address efficiency and capacity issues and to strengthen provincial functions and service delivery. Sub-optimal usage of existing resources needs to change if province is to grow more rapidly. Government focus is more on building rather than the efficient use of existing infrastructure related to water, education, or health sector. For example, almost 11,000 schools exist in the province but almost 35 percent of these remain underutilized (e.g. teacher absenteeism etc.). 39. Large number of jobs needs to be created to provide employment opportunities for the youth given high population growth rates. This however cannot be done by public sector alone. There is a significant role of private sector. Technology offers an opportunity for the province but its use is limited. Government and WBG should invest in new areas –create job creators not job seekers, invest in people with good ideas and intent. Need to promote technology, innovation and entrepreneurship e.g. through creating business/technology incubation centers at the academic institutions. It is time to promote economic transformation of the province rather than focusing on the conventional sectors which has been the way of the past. There is a need to embrace innovative approaches and engaging youth in a non- traditional way to promote provincial development and growth. There were also strong voices cautioning against urban bias or ignoring / marginalizing the rural youth –they also need to be given appropriate opportunities and forums to productively engage in their communities. Youth can also play a role in ensuring good governance and social accountability. 40. Women make up more than half of the provincial population yet majority of them are not involved in development process. There is need to focus on female education and economic engagement of women. Women need to be given voice and an opportunity to educate themselves and become productive citizens of the province. Social protection of disabled and vulnerable segments of population is largely ignored – need to have conditional transfers linked to school participation. 41. There is also a need to invest in general awareness and communication campaigns for behavior change and to educate communities about misuse of resources and modern management techniques. It is also important to disseminate information on projects to cultivate community ownership and monitoring of results. C-V: Session with the Private Sector 42. Private sector, representing traders, transporters, farmers, and industries participated in the discussion and shared views on the challenges, opportunities and priorities for the province. 43. Water and power shortages were highlighted as major challenges in the province adversely affecting livelihoods (livestock, small farming), mining industry, environment (forests) and could pose a serious threat to people‟s lives. The water table has gone very low; people are not able to draw out drinking water with hand pumps. With no electricity to pump water, access to drinking water is becoming a critical life threatening problem. The recurring droughts and arid conditions are also a factor affecting availability of clean drinking water. Small dams and introduction of modern technology in farming practices and irrigation systems would help. There is between 12- 20 hours of load shedding per day and without electricity there is no industry – solar and wind energy needs to be prioritized, there is potential to involve local investors. 44. It was suggested that the transport sector is the second biggest employer in Balochistan and road infrastructure is a major constraint. WBG was asked to focus on improving connectivity and upgrading trade and logistics infrastructure (roads and railways network, truck terminals, warehousing, loading / unloading, packing and other downstream services) for regional linkages. Establishing truck terminals 8 alone can provide upto 25,000 jobs. WBG was requested for technical advice on the international trade agreements, linkages with chambers and associations of neighboring countries, and cold chains for fruits and agriculture for marketing in country as well as outside markets. Bottlenecks in trade, particularly with Iran (currently only 20%) were highlighted – need to review and improve arrangements on tonnage, visa fees, and travel and fruit imports. Grading facility needs to be set up and industrial zones/ export processing zones need to be developed. Around 40 percent wastage of fruits happens due to lack of refrigerated trucking units. Pulping facilities of international standards are also required. Opening of better trade routes, reforms in trade policies, incentives for bilateral trade, addressing smuggling and formalizing the exchange will encourage better development of the economy. The traders are willing to be part of the formal sector and pay taxes. Security of goods, abduction of transporters and health status of truckers also came up as concerns that need attention. 45. Minerals and fisheries were identified as areas with great potential but the province needs technical support for international agreements and sustainable development of these resources. Involvement of the local communities and providing them the tools and skills to benefit from these resources was also emphasized for ownership, success and sustainability of the investment. For Baloch areas specially, it is important to engage, compensate local communities for benefit sharing to address the militancy issue. 46. A large number of Balochistan people are employed in the Middle East – need to invest in skills development of locals to enhance opportunities for export of human capital. This will safeguard against growing conflict. There was discussion on underutilization of women‟s contribution towards the economy --importance of engaging women in productive work. One participant used the example of neighboring Iran where women play an active role in the cottage industry, pickle industry, handicrafts etc. He suggested that women‟s contribution is vital to help a family graduate out of poverty. In addition, women who are educated could find better job opportunities in cities, could teach in schools and could also work in the fields, if they were provided with an opportunity. 47. Due to worsening security, local investment is virtually non-existent; money has been taken out of the province. It was pointed out repeatedly that the private sector in Balochistan has no access to credit. The province has been declared a red zone, and no commercial banks are willing to lend money. The reasoning for these restrictions are based on security situation, whereas other parts of the country, particularly Karachi have similar challenges but there access is not restricted the same way. If credit is made available, private/public partnerships and larger investments can be made which could support economic activity in the province. The private sector showed willingness to share equity even up to 50% on commercial mark ups. 48. Generally, the private sector was positive and hopeful of the new government to bring about the change that the province needs. But there were concerns on appropriate utilization of funds. The WBG was asked to play a role in transparency and accountability to ensure funds allocated are used for the intended purposes and benefits can be visible to everyone. Lack of progress in health and education was highlighted. No significant improvements were made by the previous governments, but they are a priority for the province and there is huge demand for services. If people are provided jobs and livelihoods opportunities, they will have resources to invest in education and health. It was suggested that properly functioning local governments at the village level in remote union councils can help end corruption. Financing could also be directed towards responsible private entities to check wastage / leakages. C-VI: Session with the Parliamentarians / Political Leaders of Balochistan 49. Representatives of mainstream political parties, including MPAs and MNAs, were invited for the discussion. There was convergence on main challenges and priorities for the province, which shows the growing maturity of the political process. It was emphasized that the WBG should devote more resources to the backward provinces like Balochistan, as the needs are the greatest. 9 50. Water is a priority, if not addressed timely could result in loss of life. Migration is already taking place. The dropping water table has become a threat to sustenance level agriculture, livestock, forest and environment and most importantly drinking water. Centuries old Karez system is dying due to depleting water table, can be recharged with delay action dams, would not need electricity. Need storage dams as well, watershed management, rehabilitation of canal system, regulation to control tube wells. Subsidies are being withdrawn, the growers would not be able to afford huge electricity bills – one option is to provide concessional loans to facilitate growers to shift to solar tube-wells. WBG can share global knowledge and help in policy reforms on water sharing and per capita use. Also extend support for feasibility studies and development of Nari and Porali basins. 51. The energy shortages are adversely affecting all spheres of life -- agriculture, commerce, trade and industry depends on regular power supply. The „energy problem‟ needs to be addressed to save livelihoods and employment. Solar power is one option for quick fix but small dams provide long-term solution. Need public-private partnerships for energy. 52. In Balochistan, about 70% (some participants used 80% and 90%) of the population that is dependent on the agriculture, livestock, and fisheries for their livelihoods. Water scarcity, power shortages, lack of roads / farm-to-market linkages, processing facilities and cold chains are negatively impacting the sector growth. Need to educate farmers about new technology for irrigation. It was shared that forty percent of the crops get wasted because of bad seed, poor fertilizers, poor storage and ignorance about improvement methods. Linked to livestock is the issue of deforestation. Seventy percent of the forests have been used for fuel and this is impacting the environment and contributing to the climate change. Reforestation can preserve Balochistan‟s wildlife and improve the existing conditions. Fisheries in the coastal areas need to be supported as a means of livelihoods -- need new boats and technology, cold storage for the catch. 53. Employment generation and benefit sharing around local resource base can reduce insurgency and conflict. Need to generate livelihoods locally – working abroad is becoming difficult, there are no labor rights, people suffer discrimination and cannot take along families. Jobs will come from promoting commerce and trade infrastructure. The full potential of this can be realized with comprehensive development including infrastructure: roads, economic/industrial and export processing zones on the border (Chaman, Zhob) for minerals, fruits and other produce; and influence in policy reforms on trade agreements that are mutually beneficial. This should accompany skill development of local population to avail the job opportunities. Need to invest in technology for vaccination, sorting, grading, cold storage otherwise the products are not acceptable in international markets. The fresh and dry fruits have in- country as well as export potential that is mostly wasted due to no preservation and storage facilities. There is huge unexploited potential in mining, locals are not benefitting and resources are being mismanaged. Roads are needed to connect mines with nearest markets. It was stressed that technical knowledge in these sectors could help bring in efficiency. Running power units on diesel for mining are very expensive. Invest in solar power, import power from neighbors if we have to. 54. The law and order situation in Balochistan needs to be addressed and this can be done when institutions are strengthened. The civil service, other government institutions are in bad shape and need to build capacity. People have started migrating to Iran and other areas for employment and to escape from conflict. 55. Health, education, and connectivity are the neglected areas. No doctors and teachers are available in remote areas due to lack of residential and other facilities. High illiteracy, non-functional schools and bad governance are challenges in the development of the province. Because of scattered settlements basic health services are not available in all areas. There are no road and railway links. Focus on mother and child healthcare --at times women and children cannot access health facilities due to large distances travelled. The basic health units and schools that do exist need upgrades, the staff needs 10 accountability and attendance is an issue. It was suggested that the focus for schools needs to be on residential colleges and must address safety and security concerns of parents and teachers alike. Need to support railway linking Balochistan to Punjab and KP. Support public-private partnerships to manage all these areas. 56. Lack of continuity in government policies, transparency and corruption are the key issues to address. People take corruption as a right and there is no development and results on the ground. Local government system will not work without devolving the fiscal responsibility and accountability. National Reconstruction Bureau and the local government system that it brought in are classic example where great amount of energy and resources were wasted but the whole thing was discontinued as the government changed. Similarly, a lot of funds were given to the Balochistan government in the last five years but nothing was delivered. There is a need to work collectively to address these issues. 57. It was highlighted that power imbalance and inequality at every level – ranging from the family unit and household level to the federal and provincial relationship -– are the root causes that need to be tackled. Feudal and elites are influencing the development priorities, working class and weaker sections of society are deprived and not represented. Need to check this imbalance, focus on bringing women in the mainstream, and provide microfinance, focus on youth employment to reduce law and order issues. Job opportunities for women should not be limited to the informal markets only. It was emphasized that women need ID cards and should be on electoral roles. D. Follow up / Next Steps 58. The WBG team thanked the participants for their insights, contributions and views on the challenges and priorities for Balochistan. As mentioned before, the WBG has limited resources and would not be able to respond to all demands under the new strategy. We would however share what we heard at various forums and try to facilitate and leverage support for Balochistan development priorities to the extent possible. 59. Next steps: the consultations report for Balochistan documenting the discussions being shared with everyone. Second round of consultations would take place in February 2014 and first draft of the WBG CP6 document will be shared for validation and comments. The CP6 will be finalized and presented to the WBG Board of Executive Directors in June 2014. CP6 implementation will start from July 1, 2014. During implementation, effort will be made to widely share periodic reports on CP6 progress and results achieved. Please follow us on Facebook (www.facebook.com/WorldBankPakistan) or the webpage (www.worldbank.org.pk) for providing feedback and regular updates/information on Pakistan Country Strategy and Program. Attachment: List of Persons Met 11 CPS- Consultations with The Governor of Balochistan September 23, 2013 S No Name Designation/ Organization 1. Muhammad Khan Achakzai Governor, Balochistan 2. Aslam Shakir Baloch Additional Chief Secretary 3. Dostain Jamalidini Finance Secretary 4. Mr. Robert BouJaoude Program Coordinator, World Bank 5. Ms. Uzma Basim Senior Operations officer, WB 6. Ms. Saadia Refaqat Economist, WB 7. Mr. Rachid Benmessaoud Country Director, WB 8. Mr. Jose. R. Lopez Calix Lead Country Economist, WB 9. Mr. Sher Shah Khan Senior Governance Specialist, WB 10. Ms. Huma Zafar Consultant, WB CPS- Consultations with The Chief Secretary of Balochistan September 23, 2013 S No Name Designation/ Organization 1. Babar Yaqoob Fateh Chief Secretary, Balochistan Mohammed 2. Aslam Shakir Baloch Additional Chief Secretary 3. Dostain Jamalidini Finance Secretary 4. Kaiser Bengali Economic Consultant, GoB 5. Mr. Robert BouJaoude Program Coordinator, World Bank 6. Ms. Uzma Basim Senior Operations officer, WB 7. Ms. Saadia Refaqat Economist, WB 8. Mr. Rachid Benmessaoud Country Director, WB 9. Mr. Jose. R. Lopez Calix Lead Country Economist, WB 10. Mr. Sher Shah Khan Senior Governance Specialist, WB 11. Ms. Huma Zafar Consultant, WB List of Participants- Consultation Sessions with the Government of Balochistan* Sept 23rd, 2013 S No Name Designation/ Organization 11. Mr. Ali Ahmed Mengal C & W Department 12. Mr. Abdul Jabbar Khan “““ 13. Mr. Fuad H. Rabbani Energy Department 14. Mr. K R Ejbani Secretary , Forest & Wild life Department 15. Mr. Abdul Rehman Buzdar Higher Education Department 16. Mr. Siddiq Mandokhail Mines & Minerals Department 17. Mr. GhulamRasool Jamali CSSDD 18. Dr. GhulamHussain Jaffar Director Animal Health 19. Mr. Asmatullah Kakar Secretary , Implementation P & D Department 20. Mr. ZeeshanulHaq Secretary , Fisheries Department 21. Mr. Ghulam Muhammad P & D Department Sabir 22. Mr. NaseebUllah Khan Secretary Bazai Irrigation 23. Mr. Saboor Kakar Secretary Health 24. Mr. Ghulam Ali Baloch Secretary Secondary Education 25. Mr. GhousBaksh Marri Joint Chief Economist P & D Department 26. Mr. Manzoor Ahmed DG P & D Sarpash 27. Mr. KhaleeqNazar Secretary 28. Mr. Sadiq Ali Agriculture 29. Mr. Syed Ali Imran Coordinator Forests 30. Mr. ArifHussain Shah Chief Foreign Aid 31. Mr. ShoaibTareen PD BSSIP Irrigation 32. Mr. Muhammad Masood Admin Officer Irrigation Aslam 33. Sh. Nawaz Ahmed Additional Secretary, PHED 34. Dr. Tariq Jafar Additional Secretary , PHED 2 35. Dr. Ghulam Hussain Director Colleges & Higher Education 36. Mr. Robert BouJaoude Program Coordinator, World Bank 37. Ms. Uzma Basim Senior Operations officer, WB 38. Ms. Saadia Refaqat Economist, WB 39. Mr. Rachid Benmessaoud Country Director, WB 40. Mr. Jose. R. Lopez Calix Lead Country Economist, WB 41. Mr. Sher Shah Khan Senior Governance Specialist, WB 42. Ms. Huma Zafar Consultant, WB List of Participants Civil Society, Youth, Academia- Balochistan September 23rd, 2013 S No Name Designation/ Organization 1. Ms. Fozia Ahmed Communication officer, UNDP –RAHA 2. Ms. Shazia Aman Marri Gender & Social Protection Officer, UNDP- RAHA 3. Mr. Muhammad Shah Khan Director University Advancement , BUITEMS 4. Mr. EhsanUllah Youth 5. Mr. Waheed Shinawar Youth 6. Mr. Duad Khan Principal Officer - FAO 7. Mr. Zarak Mir TKF 8. Mr. Syed Qurban Gharshin CEO, BEEJ 9. Prof. Abdul Rashid Professor 10. Mr. Faiz Kakar Not mentioned 11. Mr. Sanaullah Panezai Not mentioned 12. Mr. Rashid Chairman 13. Mr. Amjad Rashid Taraqai Foundation 14. Ms. Nusrat Umrani WDO 15. Dr. Zainab Bibi Assistant Professor 16. Mrs. Riffat Arshad Assistant Professor 17. Ms. Farhat Arshad Registrar, Women university 3 18. Mr. Aimal Khan Officer, Balochistan Education Foundation 19. Mr. Dawood CEO, NWO 20. Mr. Kabir Khan PM, CPD 21. Mr. Haroon Dawood Resident Director, Aurat Foundation 22. Syed Taimoor Shah Consultant, FAO 23. Mr. Syed Ubaid Agha Director 24. Ms. Farkhanda Aslam Associate Director, IDSP 25. Ms. Najeeba Syed Associate Director, CYAAD 26. Mr. Niaz Ahmed Abro Manager Monitoring & Evaluation 27. Mr. Shabir Ahmed Manager Program (SCSPEB) 28. Mr. Israr Panezai CEO, Shaor 29. Mr. AsadullahTaj Executive Director, BOI 30. Dr. Shah Nawaz Khan BRSP 31. Muhammad Qavi Khan CEO SCAP- Balochistan 32. Dr. Syed Asad Rehman Director OHA, Balochistan 33. Dr. Abdul Haleem Sadiq Trust 34. Mr. HabibUllah Lecturer 35. Mr. Muhammad Khan Labour Welfare Department 36. Mr. Naseebullah Khan TVO Quetta 37. Mr. Robert BouJaoude Program Coordinator, World Bank 38. Ms. Uzma Basim Senior Operations officer, WB 39. Ms. Saadia Refaqat Economist, WB 40. Mr. Rachid Benmessaoud Country Director, WB 41. Mr. Jose. R. Lopez Calix Lead Country Economist, WB 42. Mr. Sher Shah Khan Senior Governance Specialist, WB 43. Ms. Huma Zafar Consultant, WB CPS Consultation with Private Sector - Balochistan September 24th, 2013 4 S No Name Designation/ Organization 1. Mr. Jahangir Lango Builder 2. Mr. Nasir Agha General Secretary- Balochistan IND Association 3. Dr. Daud Mohammad Chairman 4. Mr. Kazim Khan Achakzai General Secretary, Balochistan Horticulture Cooperative Society 5. Mr. Niaz Mohammad Khan Chamber of Industry 6. Mr. Abdul Rehman Kakar President Anjuman Tajaran 7. Mir. YaseenMengal Deputy Secretary Anjuman Tajaran 8. Mr. Noor Ahmed Kakar President 9. Haji Abdul Rehman Bazai General Secretary, Balochistan Zamindar Committee 10. Mr. Robert BouJaoude Program Coordinator, World Bank 11. Ms. Uzma Basim Senior Operations officer, WB 12. Ms. Saadia Refaqat Economist 13. Mr. Rachid Benmessaoud Country Director, WB 14. Mr. Jose. R. Lopez Calix Lead Country Economist 15. Mr. Sher Shah Khan Senior Governance Specialist 16. Ms. HumaZafar Consultant, WB 5 CPS Consultations with Political Leaders- Balochistan* September 24th , 2013 S No Name Designation / Party 1. Mr. William John Barkat MPA-PMAP 2. Mr. Syed Raza Muhammad MPA Barrech 3. Agha Syed Liaqat Ali MPA (PMAP) 4. Mr. Nasrullah Khan Zairai MPA (PMAP) 5. Prince Ahmed Ali MPA (PML-N) 6. Mr. Abdus Salam Khan Ex Secretary 7. Sardar Kamal Khan MNA Bangalzai 8. Mr. Amanullah Nothezai MPA 9. Dr. Hamed Achakzai MPA 10. Ms. Yasmin Lehri MPA 11. Mr. Rahmat Baloch MPA 12. Mr. Robert BouJaoude Program Coordinator, World Bank 13. Ms. Uzma Basim Senior Operations officer, WB 14. Ms. Saadia Refaqat Economist 15. Mr. Rachid Benmessaoud Country Director, WB 16. Mr. Jose. R. Lopez Calix Lead Country Economist 17. Mr. Sher Shah Khan Senior Governance Specialist 18. Ms. Huma Zafar Consultant, WB * On a meeting held on September 23rd, Lt. General Abdul Qadir Baloch, Federal Minister for SAFRON met with Mr. Rachid Benmessaoud Country Director World Bank and Uzma Basim, Senior Operations Officer to discuss the Country Partnership Strategy Consultations. 6