The economy of Balochistan is largely based upon the production of natural gas, coal and other minerals.

Balochistan has been called a “neglected province where a majority of population lacks amenities”. Since the mid-1970s the province’s share of Pakistan’s GDP has dropped from 4.9 to 3.7%, and as of 2007 it had the highest poverty rate and infant and maternal mortality rate, and the lowest literacy rate in the country, factors some allege have contributed to the insurgency. However, in 7th NFC awards Punjab province and Federal contributed to increase Baluchistan share more than its entitled population based share. In Balochistan poverty is increasing. In 2001–2002 poverty incidences was at 48% and by 2005–2006 was at 50.9%.

Though the province remains largely underdeveloped, several major development projects, including the construction of a new deep sea port at the strategically important town of Gwadar, are in progress in Balochistan. The port is projected to be the hub of an energy and trade corridor to and from China and the Central Asian republics. The Mirani Dam on the Dasht River, 50 kilometres (31 mi) west of Turbat in the Makran Division, is being built to provide water to expand agricultural land use by 35,000 km2 (14,000 sq mi) where it would otherwise be unsustainable. In the south east is an oil refinery owned by Byco International Incorporated (BII), which is capable of processing 120,000 barrels of oil per day. A power station is located adjacent to the refinery. Several cement plants and a marble factory are also located there. One of the world’s largest ship breaking yards is located on the coast.