Banking is an essential element that regulates and rotates the financial variables in a society. Its significance in modern age can be related to its ancient foundation back in 2000 BC. The general development and prosperity of masses, and society in large, is directly or indirectly linked with the economic management of the society.
Saving and investment money exercises in a specific area thrive on the back of its financial quality that further supports the economy of that region. Balochistan, encompassing nearly 44 percent territory of Pakistan, is rich with mineral assets, and offers enough potential for monetary development. However, most of its resources are yet to be subjugated by authorities. That is why, the banking sector in Balochistan have a little nearness in development of branch system in the territory and is developing slower than in the other three regions.
Despite its massive hold on opportunities, Balochistan lacks financial growth and is the most underbanked province among all other. However, this home of 5% population of Pakistan can enhance the nominal economic activity by having its own central banking coverage.
The issue, nonetheless, is that bank lending and funding activities in Balochistan obliges the requirements of few prominent people and organizations. Banks need to search for more current territories to grow their activities. The province has an insignificant mechanical industry base and its administrations division scarcely exists. In case of agro industry, the horticultural part is detectable but not extensive, and the territory produces exportable excess of organic products like dates and apples. Animals, a sub-division of farming, additionally flourishes on the occasion of sufficient downpours. This management of resources can be optimized and developed by initiating a self-monetary model.
Balochistan’s main economic withstanding is trade and exchanging of goods. Furthermore, it is also a hub of heavy industrial government sponsored projects. These contractual activities and mega projects can bring a lot of investment in the province and also Foreign Direct Investment (FDI), provided the funds are exploited in true sense through a government based corporate identity, Balochistan Bank.
The Government of Balochistan has recently announced its initiatives to establish the provincial bank as it will further benefit the province in many ways. Balochistan Bank can head start for the international projects like CPEC that will give boost to economic activity in the province. The establishment of the Bank will provide employment opportunities and monetary incentives to capitalists. Additionally, its operations will regulate the commercial and Islamic banking under one wing in the supervision of state bank leading to broaden the base of banking in whole region. The people of Balochistan will also gain from the trainings, commerce and financial developments which will further help in the progression of the province. The overall lending and mobilization activities of money will more enhanced as it will be region based.
The establishment of Balochistan Bank will have a huge and long lasting impact on the financial and economic development of Balochistan, benefiting not just the people in the cities but also the locals who otherwise have no access to banking in the province.