Balochistan to get its own bank

According to the Dawn, Balochistan is to get its own regional bank, the Balochistan Bank. On June 18, the provincial finance minister presented the planned budget for the upcoming fiscal year 2021-22 (which represents about Rs 500 billion or €2.5 billion) which included the creation of a regional bank.

Some national banks already operate in Balochistan. But this new bank will greatly accelerate the development of the province. Contrary to national banks, it will entirely focus on this region that was relatively left behind in the  past, as admitted by Prime Minister Imran Khan. The new financial   institution will be a commercial, investment and development bank.  It will identify the sectors that need to get supported and facilitate the financing of local entrepreneurs in Quetta, Gwadar and other cities and regions of Balochistan. With a strong local presence, companies will not only be able to get loans, but also receive the financial expertise from the Bank. Balochistan is a unique region, and requires specific policies and support; the new Bank can partly answer the challenges Balochistan is facing.

Balochistan still remains an underdeveloped region, where few locals have access to banking services, and this is an obstacle for development projects.

According to local authorities, this new Bank will also help the province to increase its revenues, and reduce its financial dependency from the central government. Loans will increase productivity in the main economic sectors like agriculture, and help locals to export to new markets in Balochistan but also in other regions.    

According to the Nation, the provincial government has already contracted some consultancies to work on the creation of th Balochistan Bank.

Leave a Reply

Your email address will not be published. Required fields are marked *