Government of Balochistan is about to establish its own provincial bank, the Bank of Balochistan, augers well with the fundamental change in the way the province intends to handle and mobilise its finances. It is a positive gesture regarding the preparation of the ground on economic independence, resolution of the long-standing issues in the field of financial inclusion, and the establishment of opportunities at the local level in a province that has long remained marginalised economically.
Why Does This Move Matter?
The Province of Balochistan is still on the periphery of the economic powerhouse in Pakistan although it is a province with vast land and natural resources. Basic banking facilities are still out of reach in many rural districts. Small enterprises, farmers, and entrepreneurs are usually left to access formal credit sources. Similarly, the province relies mostly on federal funding to conduct development work- a factor that leaves them with minimal autonomy to plan.
What Does the Bank Aim to Do?
The Bank of Balochistan is not being modelled like a normal commercial bank. Rather it is supposed to play a dual role as a day-to-day banking organization as well as operating as a development bank. Its main duties as per the initial plans will be:
Offering affordable banking to individuals and companies.
The provision of loans to meet the local demands particularly in the agriculture sector, trade, and small industries.
Funding government development and infrastructure initiatives.
Opening career and skill building opportunities within the field of finance.
The Potential of the Bank
- Better Access to Banking : Having a local institution that targets underserved regions, it is possible that more people will open accounts, receive credit, and participate in the formal economy. This helps in achieving the goals of the National Financial Inclusion Strategy (NFIS), which has been failing to show ground in the province.
- Encouraging Investment : The bank can reduce the entry barrier of small and medium enterprises (SMEs) by aligning the credit products to the realities on the ground. This would facilitate in fostering entrepreneurship and other investors, including foreign investors, seeking new markets and opportunities in underdeveloped markets.
- Creation of Job on Multiple Levels: The bank would have the potential to be a job creator, not just in the employment of people to man the branches, but also in the development of other sectors such as agriculture and energy. It may also equip a new breed of professionals in the banking, information technology as well as financial management.
- Local Growth Utilizing Local Funds: The bank could instead direct these funds back to the province through infrastructure, energy projects, agriculture and small industries instead of seeing them go out of the province. Such a reinvestment boosts the economy of the ground.
The Bank of Balochistan can become a game-changer- but it should be established on the correct platform. It is an uncommon chance to transform the flow of money in the province, its saving and investing location and manner. When done well, it will introduce dignity and opportunity to long-term financially marginalised people of the province.
