Charter of the Economy presence of the Tarbela Dam. Balochistan has a relatively underdeveloped service sector. However, it generates a relatively large portion of its value added from the mining and quarrying sector, especially natural gas. There is need to identify sub-sectors where a particular Province has a locational and comparative advantage. This is measured by the Location Quotient, LQ, for a particular sector in a Province. LQ is the ratio of share of national value added in a particular sector in the Province divided by the overall share of the Provincial Economy in the national GDP. A ratio above unity implies comparative advantage in the sub-sector of the Province. The sub-sectors of comparative advantage in each Province are given below: Punjab: important(major crops); cotton ginning; livestock(especially milk production); large-scale and small-scale manufacturing slaughtering; construction; transport and communications; finance and insurance; public administration and defense; and economic, social and community services. Sindh: cotton ginning; livestock; fisheries; mining and quarrying; large-scale manufacturing; wholesale and retail trade; finance and insurance, ownership of dwellings. Khyber-Pakhtunkhwa: livestock; forestry; slaughtering, construction; electricity and gas; transport and communications; economic, social and community services; ownership of dwellings. Balochistan: minor crops; fishing; forestry; mining and quarrying; electricity and gas; wholesale and retail trade; public administration and defense. Clearly, the development strategy of Provincial Government must be to focus more on sub­sectors where it has a comparative advantage in the national context. 25.3. The Gross Regional Product by Expenditure The GRP by expenditure of each Province has been estimated for the first time. The resulting estimates for 2018-19 are presented in Table 25.5. On the bases of these estimates, key economic ratios are derived for each Province and given in Table 25.6. the derived ratios are extremely revealing and have never been highlighted before. The overall investment to GDP ratio is, in fact, higher in the two smaller Provinces. Khyber-Pakhtunkhwa has a higher level of private investment due to relatively large inflow of remittances, a large part of which goes into the housing sector. The higher level of investment in Balochistan is sustained by larger public investment financed primarily through NFC transfers and more recently due to CPEC. 248