Why Gilgit-Baltistan’s Wealth Doesn’t Reach Its People?

4 minutes read

By Muhammad Panah

Gilgit-Baltistan (GB), a stunning region of Pakistan, is blessed with abundant natural resources and holds immense strategic importance. Positioned at a vital crossroads, it connects Pakistan with several countries, most notably China, the world’s rising global power.

Despite its rich potential and promising sectors that could drive economic prosperity, GB has not been able to fully harness these opportunities. Challenges such as its uncertain legal status and weak policy implementation continue to hinder the region’s path toward economic uplift and a higher standard of living for its people.

Education vs. Opportunities
Gilgit-Baltistan (GB) stands out in Pakistan for its relatively high literacy rate compared to other provinces. Over the years, the people of this mountainous region have placed a strong emphasis on education, resulting in impressive progress in schooling and academic achievement. Despite this educational advantage, GB continues to face significant challenges in terms of economic development. Unlike other parts of Pakistan, the region offers limited opportunities for employment, business ventures, and income generation. The lack of industries, infrastructure, and large-scale investment has left many educated individuals struggling to find suitable livelihoods. This imbalance between higher education levels and fewer economic opportunities creates frustration and disappointment among the youth. Information Technology (IT) has the potential to empower educated youth and improve their economic wellbeing. However, the government has failed to ensure reliable internet access. The only available provider, the Special Communication Organization (SCO), has become a major source of frustration for professionals, as its poor services directly limit opportunities for economic growth and innovation.
Tourism – Booming but Unfair
Tourism has rapidly emerged as one of the most promising economic opportunities. The region, blessed with breathtaking mountains, glaciers, lakes, and valleys, attracts millions of tourists each year from across Pakistan and abroad. However, a significant portion of the tourism economy remains concentrated in the hands of wealthy capitalists and large investors, leaving limited benefits for local communities. With the rise of new trends such as “green tourism” and the growing influence of non-local investors, small-scale local entrepreneurs often find it difficult to compete with bigger players. As a result, while the region hosts millions of visitors, the true economic benefits are not fully reaching the indigenous population who have historically been custodians of the land and its resources.
Border Trade – A Lifeline Under Threat
Border trade has long been one of the most significant sources of revenue for the federal government, as well as a lifeline for the people of Gilgit-Baltistan. The trade routes connecting Pakistan with China through Khunjerab Pass have not only facilitated the exchange of goods but also provided employment opportunities for thousands of locals. Hundreds of small traders rely on cross-border trade to sustain their families, while thousands of educated but unemployed youth work as luggage carriers and transporters, earning a modest livelihood through this sector. Despite its importance, this vital economic doorway is gradually closing due to government policies and the growing monopoly of the National Logistic Cell (NLC) in the Sost dry port. The monopolization of trade by larger state-controlled institutions has reduced the space for small traders and local workers, cutting off a crucial source of income for ordinary families. As a result, many who once depended on border trade are now facing financial hardship and uncertainty about their future. If these restrictions continue, the consequences will not only affect the local economy of Gilgit-Baltistan but may also lead to increased unemployment, poverty, and frustration among the region’s educated youth.
Mineral Wealth – For Whom?
Gilgit-Baltistan is blessed with vast deposits of minerals and natural resources, making mining one of the region’s greatest opportunities for future economic prosperity. Precious stones, metallic ores, and other valuable minerals lie within its mountains, holding the potential to transform the local economy and uplift the livelihoods of its people. Recently, even the Prime Minister of Pakistan publicly acknowledged that GB possesses such huge mineral wealth that, if properly utilized, it could help the country repay its foreign loans. While this declaration highlights the strategic importance of GB’s natural resources for the national economy, it also raises critical questions. The foremost concern for the people of Gilgit-Baltistan is: what role will they play in this process? If the minerals of GB are to be used to stabilize Pakistan’s economy, what guarantees exist that the benefits will reach the local population? More importantly, why should the sacrifices of GB’s natural wealth be used primarily to pay off national debts, while the region itself still suffers from underdevelopment, lack of industries, unemployment, and inadequate infrastructure? This paradox fuels feelings of neglect and exploitation among the people of GB, who have historically been marginalized in decisions concerning their land and resources. For mining to truly bring prosperity, it is essential that policies ensure transparency, local participation, and a fair share of revenue for the region. Without such measures, GB’s immense natural wealth risks being extracted for national gains while leaving its own people in poverty and disillusionment.
Water – The Lifeline of Pakistan
Gilgit-Baltistan serves as the lifeline of Pakistan’s agriculture and economy, as it is the primary source of the country’s water. The mighty Indus River originates from Baltistan, flowing through the length of Pakistan before ending in Sindh, nourishing millions of acres of farmland along the way. In addition to the Indus, the region is home to hundreds of glaciers, high-altitude lakes, and towering peaks like K2, often referred to as “water towers,” which feed the river systems that sustain the nation. Without the continuous flow of these waters, Pakistan’s vast agricultural plains and food security would collapse. Despite this critical contribution, the people of Gilgit-Baltistan—the custodians of these natural water reservoirs—remain neglected and marginalized. While their resources serve the entire country, the region itself faces underdevelopment, unemployment, and inadequate access to basic services. The irony is that those who protect and preserve the very sources of Pakistan’s survival are themselves left in the shadows, excluded from the benefits that their land provides to the nation.

For Pakistan to secure its water future and strengthen its agriculture, it is essential to recognize the pivotal role of Gilgit-Baltistan. Policies must be designed not only to protect these fragile ecosystems but also to empower the local communities through fair resource sharing, infrastructure development, and livelihood opportunities. Only then can the custodians of Pakistan’s water towers step out of the darkness and share in the prosperity their homeland sustains for the entire country.

To ensure balanced development, the government must adopt inclusive trade policies that protect the rights of small traders, encourage local participation, and maintain border trade as a shared opportunity rather than a restricted monopoly.