Gwadar, being a coastal district, earns a considerable amount as octroi which has enabled many of its local councils – including two union councils – to be financially self-sufficient. However the overall income-expenditure equation remains negative in Gwadar. The amount collected as revenue by various government departments amounts to one third (33.3%) of the total annual expenditure in Gwadar. Although this proportion is reasonable keeping in view the performance of the other districts in Makran division, financial self-reliance of the district seems still not possible.

The income/expenditure figures have been provided by the District Treasury Office where all the revenue, collected by various federal and provincial government departments functional in the district, is deposited. The same office is responsible for disbursing expenditure money to these departments. However, the bulk of the federal revenues and income is not administered by the Treasury Office and therefore no adequate data are available on the actual government income at district level. Therefore, these data are not sufficient for a comprehensive fiscal analysis of the district but can be used for comparative purposes. The following table presents amount of revenue generated from Kech by various departments.

The local government institutions like the municipal committees of Gwadar and Pasni, the town committees of Ormara and Jiwani and the union councils of Sur Bandar and Pishukan are in a surplus fiscal position. One probable reason for this good performance is the high income level through octroi and other taxes. Other reasons may include better fiscal management and strict vigilance. If compared with the provincial or federal government departments, these local councils seem more efficient and responsible in their financial affairs as they spend a considerable amount of money on their development programmes.

Most of the development activities in Gwadar district are funded through the Public Sector Development Programme (PSDP). Development funds from federal and provincial resources are only partly administered at the district level. Major development activities are directly administered from provincial level and it is sometimes hard to trace accurately that which part specifically benefits the Gwadar district.

In 1995-96, a total amount of 77.993 million rupees was allocated for development activities under the revised Public Sector Development Programme (PSDP) in the following sectors: roads, health, fisheries, environment, and public health engineering. This amount was earmarked for completion of one new and 5 ongoing schemes. The Makran Sand Dune Stabilisation project had Foreign Project Assistance (FPA) worth 56.06 million rupee from the World Bank. The other schemes include dredging work at Pasni fish harbour, construction of Pasni-Ormara road, two water supply schemes and construction of residences for the health personnel. For the year 1996-97, the total revised PSDP allocation was 65.456 million rupees for 3 ongoing development schemes. For 1997-98 the PSDP allocation amounts to 81.13 million rupees for 2 new and 3 ongoing schemes. This budget includes 58.69 million rupees from the Foreign Project Assistance for Sand Dune stabilisation in the district.

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