A Cost-Benefit Analysis of Foreign Direct Investment in Balochistan: A Study on Saindak Project

Abstract

Pakistan has received one of the biggest foreign investments in its history, however it failed many times in managing and resolving disputes domestically related to foreign investment, as in Saindak case. There is a need of Cost Benefit Analysis (CBA) of these projects and to make indigenous people informed about the pros and cons and benefits of the projects operating in their region. This research examines Foreign Direct Investment in Balochistan by conducting Cost Benefit Analysis of Saindak project under different government regimes. A qualitative and exploratory research has been conducted. The study uses secondary data of Saindak project from period 2001-2022. Content analysis technique is used to analyze variations in outcome, success, costs and benefits of Saindak Project across different time periods. The research concludes that Saindak Project has failed to fulfill CSR (Corporate Social Responsibility) activities and the resources had been exploited many times. The government must engage in negotiations with the rebel groups, free political detainees, and uphold the rights to freedom of speech guaranteed by the constitution. The only way out of internal quagmires and unrests is to give more voice to the indigenous people and the Federal and provincial governments should accept the idea of true democracy.