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ONE can appreciate the chief justice of Pakistan’s sensitivity to the growing water crisis in Pakistan, but with all due respect this is not how infrastructure finance is done. You do not crowd-source a mega dam. The fact that this even needs to be said is embarrassing, to say the least.
Just consider a few questions that arise when trying to use voluntary donations to fund the Diamer-Bhasha dam, whose cost has been given as Rs1.450 trillion. This figure is taken from a briefing given by water and power officials at a hearing of the Senate Standing Committee on Planning, Development and Reform. The cost of reservoir construction was given as Rs650 billion, and the rest for power turbines and associated infrastructure, and land acquisition and resettlement.
Now let’s do some math on this. As of writing, the total amount deposited in this account was Rs32 million. Since the account is shown as being open since July 6, let’s assume only three of those days were functioning; that comes to almost Rs10m per day. Next let’s assume this will pick up pace, since tacit pressure has come to apply on banks to raise funds from their employees (in a meeting held on Tuesday). Exactly how ‘voluntary’ the contributions will be is a separate conversation. For the moment, if we assume that on average, the account sees an inflow of Rs20m per day (which is highly optimistic), then it will take 72,500 days to reach the target, or 199 years.
Public finance is not a joke, the state cannot be run like a charity, and infrastructure finance cannot be crowd-sourced like this.
Wait a minute, some people will say. All the money does not need to be available up front in order to begin work! Fair enough. Consider another angle. For next year, the amount allocated for construction of the dam part of the project alone is Rs23.68bn as per the Public Sector Development Programme (PSDP) document on the Planning Commission’s website.
Now do the math. At Rs20m per day, it will take 1,184 days to reach the target of Rs23.68bn, or 3.2 years. Meaning even next year’s PSDP allocation (for the dam part alone) will not be possible to meet the amount.
You can change the assumptions. Let’s say the contributions come in larger than what I have assumed (which, mind you, is generous). Let’s say it’s double the size. That cuts down the period by half, meaning it will take more than a year and half to reach next year’s target alone.
Let’s say instead that the contributions are not meant to pay for the entire dam, but only to supplement government allocations for the project. Even then, a year’s intake of Rs7.3bn (assuming a Rs20m per day average contribution for the year) will not even be enough to pay for a portion of the resettlement cost of the project.
Public finance is not a joke, the state cannot be run like a charity, and infrastructure finance cannot be crowd-sourced like this. Mind you, the calculations here assume an average contribution rate of Rs20m per day, every day, for years and years on end. How long will the momentum behind this endeavour sustain itself? Weeks? Months?
Before people are asked to contribute their hard-earned money for any cause, they are entitled to ask a few basic questions. What will this money be used for? Who will have the authority to transact these funds? What rules will govern its distribution? How much of an impact will my contribution have?
Perhaps these questions ought to be answered first. For example, will the money from the account be disbursed directly to the point where the costs are coming from, or will it simply be handed to Wapda, the water and power division, or the finance ministry? If it is the former, then let’s take one example. If a technical consultant needs to be retained to advise on what type of cement to use given the extremely large annual temperature variation in the region, and the attendant expansion and contraction that the dam structure will undergo in a typical year making the choice of concrete quite crucial, who will decide which consultant is most suitable for the job? What criteria will be used to make the selection?
There are thousands of such decisions that have to be made in mega projects of this sort. What are the rules of business according to which these funds will be distributed? If the plan is to simply hand them over to Wapda, who will supervise the funds to ensure their proper utilisation? How much expertise and experience does that person have in the execution of giant, highly technical projects of this sort?
This is not the first time that a joke has been made out of a very serious matter. After the earthquake of 2005, Pervez Musharraf launched a similar fund called the President’s Relief Fund. Once launched, similar tacit pressure tactics were used to get people to pay up, and one by one various companies lined up saying ‘we are pleased to contribute’, and the amounts were a million here, two million there, until interest dried up and everyone moved on. Likewise, Nawaz Sharif launched a ‘qarz utaro, mulk sanwaro’ scheme in his second term, in the late 1990s, in an effort to get donations to help pay off Pakistan’s external debt. That too ended in an embarrassing whimper.
I’m old enough to remember a similar scheme by Zulfikar Ali Bhutto in his last year. The television ads asked everyone to contribute one rupee a day, which the ad promised would be used for development purposes. The visual used to illustrate ‘development’ was a cement elevator. And that was also that.
Fact is, modern-day public finances cannot be run in this way, least of all when it comes to infrastructure finance. It’s time to grow up and face the facts: until we fix our water-pricing regime, there is no way out of this crisis.
The writer is a member of staff.
Twitter: @khurramhusain
Published in Dawn, July 12th, 2018
Comments (159) Closed
Bravíssimo!! Well researched and opinionated piece. There are many chances of embezzlement in such a way of crowd-funding. People are generous to contribute, however, the desired aim is not achieved. There is a need to prioritize the allocation of funds. I think only if BISP which is 125 Billion for 2018/19, mainly used for political workers only, is diverted could reach the target.
Brilliant article and make the issue crystal clear. Those donating millions will get back billions together in one way or other and only poor & middle class will suffer. After 10 years there won’t be anything to show off and a trillion rupee will be stuck and project cost will double.
Put additional tax as surcharge on Income Tax for construction of dams. Idea derived from GOI's way of taxing people.
A practical financial analysis. I agree that big dams can. not be made with crowd funding.
Please someone ask CJP to read this article. It will be big favor for country
The crowdfunding will be helpful, while the big fish, the golden whales, will be forced to vomit all that they have. Pakistan is determined to have Dams asap.
I admire your clarity of thought and writings...
You stole the words from my mouth, Mr. Khurram Hussain.
The root cause of this Problem is not water but the ever burgeoning Population.
People have trust in CJ and ARMY. We have no other options left. Its just a start. New government will add on their strategy.
The contribution from various organizations and individuals shows that there is national consensus to build dams on priority basis. This gesture needs to be exploited in the media. As of today, I am afraid that no one is coming up to talk the role of Flagship and steer us out of water crisis looming on our heads.
Where there is a will there is a way. At least we need to start from somewhere. Small steps will take us towards our target. Although it’s a little contribution on the part of public, but what about looted money? Looted and plundered wealth if brought back, can resolve innumerable issues, so we also need to work on this front seriously and vigorously.
Bravo great article and eye opener for many
A technical matter must be dealt technically.
Simply outstanding. My point is we should get loan from China apart from crow funding. I hope this project get started with our sincere efforts. Second forensic auditing should also be done to gain confidence of people.
Where there is a will there is a way!
Glad to see someone writing some sense. I've been trying to explain the cost of the dam and futility of the attempt of funding it from public donations from the day the scheme was announced.
Unfortunately, people view everything through their own filters, which are tinted by their own political and misplaced patriotic ideologies. Even after getting people to calculate values based on difference between millions and billions and the effect of donations in rupees to cost in dollars, even after realizing that donations would contribute less than one percent of the cost of one dam, people staunchly believe that doing this through public funding is the only way for us to progress.
Guess all we can do is keep repeating facts till someday something clicks and people see the light.
please give my money back i deposited 100000 for the dam .... now i know its a scam.
You have done all of us a favor by writing this piece. Thank you.
Incredibly powerful and eye opening article... Can no one in our govt do even a simple math as illustrated in this article?
Well, this made sense!
Exactly. Let’s not fool ourselves n learn to make long overdue choices that are becoming harder to make because we didn’t make them at the right time. Time matters.
100% true and its shame
Excellent article that make sense sir...job should be left to professionals and experts in dam developments .
Something is better than doing nothing. The democratic regime we have in this country is very corrupt, system needs to be changed.
Fully agreed and Endrosed..Khuram Hussain Always comes up with such realistic opinion on power sector articles too.
be optimistic.
In my opinion the funding initiative has been taken in order to kick start the project and push the present and future government to keep focused on the project. When a few million rupees are taken through public charity atleast public can pressure the government. I think thats the idea.
Very aptly explained why a charity drive isn't workable for a mega scale dam
Logical! (y)
Logical...! (y)
SENSE.
crowd-founding is just a token to motivate and to show support for must required project.
meanwhile, the State Bank management has decided to take forced donations from its employees for the Dam Fund. Shameful
Bravo! Well said. My sentiments exactly from day one.
Our level of intellectual bankruptcy is amazing. People fiddling in matters about which they know very little.Doing nothing regarding matters that concern them and about which they are expected to do something. Shows what they are made of, an what benefit or guidelines they can provide. Some thing , anything, to catch some publicity is welcome.They have no contribution by which they are to remembered, so some attention seeking before they go into oblivion in a few months time/
It all sounds too amateurish.
We also had Qarz Uttaro Mulk Sawaroo Program in addition to Zulfiqar Ali Bhutto's scheme... where the money went into other expenditure due to sanctions imposed on Pakistan...
Building shaukat khanum hospital was also like a joke...this nation can turn dreams into reality
The state may fail to crowd fund this massive dam project. I believe, it will highlight and create awareness about the urgency of water management among the environmentally oblivious masses.
Water collection can be done by rainwater dams while for power generation renewable sources should be the norm.
awesome article written with proper facts.
Dear Sir, You have a valid point based on mathematical calculation, but the initiative and resolve of CJP is extraordinary. Its merely a symbolic gesture which will gain momentum with every passing day. The following governments will have to add up the synergies to make it a reality. Its high time that our Nation should stand up and be ready to take tough decisions
this is really a good analysis.
Agreed . Water Pricing Regime is mandatory for smooth inflow of funds for mega projects.
every thing is possible this fund may be used by Wapda through checking by Supreme Court
I am pleased to read this well explained article. Anyhow if we need to survive then we have to arrange enough water storage for this land and people.Now is the time to get back to the work seriously.
Excellent...
Please also shed some light on water pricing regime in vogue and what should it be.
Forced deductions are being made from salaries of employees of companies (both public and private sector). these deductions should be voluntary instead of mandatory (contribution vs. deduction) in the name of national cause. There is a great resentment in the already taxed salaried class.
Very well said ! Amount that can be collected by these measures will be peanuts. Considering the cost involved, i am sure this dam can never be built by PAK with their own resources. They will have to necessarily borrow from world financial institutions. Considering the state of PAK economy added to deteriorating relationship with USA, it is highly unlikely these institutions will lend to PAK. China will not give PAK a penny in aid. More loans from China to fund the project will be at a much higher interest will further add to your woes.
Who is a better ally in the current circumstances, US or China ? Time for a serious rethink.
Well said. We need to pay more attention to the broader water policy. We should fix the water-pricing scheme, get rid of the wasteful flood irrigation and replace it with more efficient methods, fix the leaks, curb water theft.
This article makes sense....however we also expect money recovered from looters to find its way in this account
A sane voice in a populist environment
Billions amount will be siphoned away by few donating millions amount. New style of corruption by playing emotionally with the masses sentiments.
Very sane and realistic article. As an Indian I take pleasure in reading author's article and feel peace has a chance in the region
Stop the developments funds given to members of parliament (basically political bribe in my view) and allocate it for big government projects. Intentions should be right and honest and we can achieve everything. Nation as a whole needs to follow a simple life style and this should come from the top starting from PM and President.
I feel that at this point in time where the entire country is suffering from water crises, generousity is not the sole reason for them to contribute but infact it is the stress, pressure and anxiety among the citizens of the state.
Great........
The idea behind fund accumulation is not build dam in hurry but to create a sense in public to do it yourself otherwise you will suffer. You are right but you need to realize we dont have any other option. This might contribute only certain minor percentage in total cost but its the beginning to imagine a vision. Remember when you want to build house in individual capacity then every penny matters alot
You are very right Mr. Khurram Hussain. Not a single dam can be built by such crowdfunding because there isn't enough money with the entire population, even if each one of them gives their last penny to the fund. It is just a publicity stunt of the present government, an excuse not to build dams. Big dams can only be built by borrowings from the world Ban or the Asia Dev Bank. But they don't really want us to have those dams as they would lose their grip on our economy as a consequence.
I wish someone translates this article in Urdu so that our masses can read it too who are very enthusiastic about donating money for the Fund. I have same questions in my mind which author has asked in this article but have no one to hear my voice that please don't forcefully deduct funds from my salary.
Why not? Imran Khan and ibrar ul Haq have successfully built many high class hospitals ..
mr writer may be thepublic funds raised through such efforts will not be enough to meet the required funding but they can atleast be a contribution in this regard even though a modest one.and all the corruption worth billions done by likes zardaris and nawaz shariefs if unearthed and recovered will be enough to finance such projetcs. for now u hv shariefs 300billion plus zardaris 35 billion and i believe such amount is enough to negate ur 20 million finance per day
@Khizar very True....At least some one had the guts to initiate the process....Thanks CJ Sab....every one has to chip in and contribute to the great case for our generation to come... including the politicians and the State...We should see the examples of others nations who has builds numerous dams I last 50 years or so... How about replicating the formula adopted by Crown Prince of Saudia....MBS....lock up 1000 so called elite who has looted our country and make them sign the cheques and build the dams....this is how we can meet the funds needed to build these dams...
Absolutely agree.
Remember, if there is a will then there is a way, so we have to be optimistic and support any good initiative that will help country's infrastructure, education, health care and any other good projects - we cannot rely upon corrupt politicians, who are selfish and looted public money. Shame on such people, and salute on our institutions like, army, judiciary, ISI, NAB and any other who are dedicated, loyal and care about nation and its sovereignty!
In my opinion, we can solve this problem by creating awareness for the present and dam for the future. All we know that how much water we waste on daily basis. Therefore, it is pertinent to educate people about effective water usage and there devastating impacts if we do not follow the practice. Carefully usage of water can prevent scarcity of water and meanwhile we can collect the funds for dams which is the utter most need for survival of our nation.
Reason and Logic have few takers in Pakistan.
But does this mean, even to think of starting a dam with our own sources is next to impossible for Pakistan. To certain extent,as per article facts, it is like a child like effort but the nations are build up with some hard work or real effort. And if not public funding could serve the purpose then why can't we think of something else which is feasible. The writer or his organization are suggested to invite suggestions at broader scale from public and then pass those to the concerned for finding some way. Because first we have to be determined and then we have to believe in hard-working. A suggestion in this regard is to get hold of all those who have exploited the sources of this country and are enjoying extra luxurious life while living in such a poverty stricken country where dam building is a big headache. However, lastly, when there's a problem we should think of solution and not of the problem only.
Thumbs up
well thought out piece of writing by Khurram sab. it is an excellent overview of the infrastructure financing mechanism
Good article. Question why the Chief Justice had to step in. Because of incompetence of the government. If our governments have right direction and policies of public interest. I have deposited some money in the fund and have believe my money will not be wasted. This fund will be added to government's fund for the project. It will create some urgency. We are facing a critical situation and need some crash programming.
Dams are build to store the water not to produce the water. Our existing dams are already empty or near to empty in month of July. This Country needs to learn the respect of natural resources and optimize the utilization.
Thank you Mr.Khurram for a thought provoking article.However it is essential, when you write some thing so important,you need to check and verify the facts.I worked in KIU(GB) for more than 5 years and let me tell you that most if not all people affected by Bhasha dam have already been paid land costs. Please do not write discouraging articles.Let people donate generously.Whatever is the shortfall,government can always pitch in to provide remaining funds.Pakistan needs dams and we must build them whatever it takes.
What the writer - the naysayers - has totally missed in his analysis (Infrastructure Financing 101) is that the funds generated through an appeal to the public (call it crowd funding, if you will, to show that you have watched Thomson Reuters and/or Bloomberg a few times) will demonstrate the commitment of the people, not just the govt (or the establishment - the bogeyman) to the project. Once the elections are over, fundraisers could be organized where celebrities will raise funds locally and from overseas Pakistanis. Provincial governments and the Federal Government will chip in and so what if we still only manage to raise 30%. With a 30% equity, the ADB, WB, sovereign funds and other donors would look at the project more positively than they would if we were not putting up anything. Just because this has never happened, not in Pakistan or elsewhere doesn't mean it can't be done! Crowdfunding, Venture capital, Angel Investors are themselves relatively new concepts.
Mr Khurram Husain articulates quite brilliantly on whatever he writes and this article is no exception.
His observations and analysis re-enforce the fact that Pakistan need look within with honesty, go back to the drawing board and re-invent itself. There are no short-cuts such as crowd-funding to build dams.
Hi Khurram
I appreciate the efforts made in writing this thoughtful note on this initiative. But I have slight different opinion on this. We have to take steps in this regard as our political governments are sleeping. This step is a first move of awakening this sleeping nation. Once this goes forward, more steps can be taken like; 1. Imposing Rs 1000 on houses on 500 sq yards and Rs 2000 on 1000+sq yards with utility bill. Same can be made for 250 sq yards with rs 200 or more for at least a year. 2. Generating funds from businesses by implying some DAM taxes. 3. Recovering looted amount from corrupts. 4. Seizing unnecessary governtment expenses on national and provincial assemblies and get a considerable amount from MNAs and MPAs. These are just glimpses. Now lets say, if we need Rs 100 from IMF loan and we have to pay huge interest on these and if we produce 50% by ourselves and remaining form them, isn't this will reduces loan and interest to be paid. (Alloted space finished)
@Himmat So few people pay taxes anyway.The only way to actually increases taxes is with automation and a proper head count. So much of Pakistan's economy is cash based.Do you think peoples servants/street venders pay taxes?
It is an obvious stun.
Thanks for the encouragement
'Diamer-Bhasha dam, whose cost has been given as Rs1.450 trillion.' ... I think if dam get started, cost would rise too.
Fact is that, if dam would really cost Rs 1450 billion than real cost would be Rs 145 billion and remaining Rs 1305 (90 percent of the cost) would go into the pockets of politicians, bureaucrats, contractors, media houses and journalists (who would get advertisements, glorify politicians, cost of projects and would turn every stone to justify the cost).
Good analysis, however author forget to add amount, which will recover from NAB and banks loan write-off which is almost 100 billion...
Agreed. What gets dams and indeed any infrastructure built Is taxation invested wisely by good governments.
There are no short cuts
No sane person can believe on such sort of financing of dams.
It was a different time when such initiatives were undertaken but given the pace of accountability and the wind of change that are blowing against all odds it is better for all of us to Kindle a ray of hope in our hearts. On paper the theme might not be seem feasible but being a vibrant country why should we take a pessimistic appraoch? If we assume that the plan will be a failure in the days to come given its technicalities, the sensitivity of honorable chief justice can not be rule out because whatever he is up to is just a glance of his determination to show a mirror to the inept politicians whom never bother to bring a revolution in terms of socio-economic change in the life of the nation. The points raised by the competent columnist are invaluable but let us put our efforts to materialize the dream of the hon'able CJP.
For every 100 Rs earning, place a Rs.3 development fund.
For every product sale, impose tax a 5%-20 sales tax Milk, Poultry, Meat etc 5%, Sale of Car, houses etc 20%. Capital gains seller 20%
Wealth tax at market rates 10%, every year.
Imports-mobiles,cars,etc 200%
"Involve public committees" to regularise collection of development tax etc.
Splendid piece of writting with great contribution from facts and figures.
Absolutely right.
Well written! Everyone had an idea that a dam can not be made this day but well done in putting figures and statistics with the claim.
Mr.Khurram Hussain you have rightly indicated the issues regarding donating for dams Scheme. Please write more about it in coming days.
Getting everyone to pay some amount from their earnings? I think there is a system for that... TAXES!!!!
10% of the defence budget for the next 5 years as a contribution towards this imminent issue of national security would do the magic.
Please don't call it 'crowd-funding'. Giving people a chance to participate in their humble way can infuse confidence and a 'sense of participation'. The CJ of Pakistan is not asking for money for himself. What he is trying is to do 'moral-boosting'. By contributing Rupees one million from his own pocket he has proved it is not a lip-service, but a big gesture to create awareness about the fact that water, air, light etc are common to all.
I am sure when this suggestion was made, a plan was laid on how to manage the money donated by the public. At present we need dams but have no money so this is the only solution at present. Think positive thats what we need at the moment. There is no other way.
Good job! but the sad fact is that our public easily gets emotional blackmail on such matters, without taking in consideration that such big state matters can't be resolved with small public funding....
really need more awareness on such issues..
You have nailed it. Excellent write-up.
Khurram, you are one of the writers I never miss to read. We need 14 Billion USD over a period of 10 years, that means a average 1.4 billion USD a year (or 175 billion Rupees a year) including the power component, turbines etc. We lost over 1,000 billion rupees in the power distribution sector just in the last government tenor of 5 year, the PIA, Steel Mills, and other public sector enterprises not included, and the tax evasion and corruption on top of this. Honestly if we can plug just half of the corruption in the power sector and public sector entities, we can build many dams in the next 5 to 10 years, but our focus is more on mega projects and kick-backs and government perennial control over public sector entities.
Kudos to author for such a great analysis. Would really like to see a follow up article on possible solutions to fund the Dams
Let us take another ca;culation. The cost of the dam Rs. 1.45 trillion is 1,450 billion or 1,450,000 million. Divide it with population of 220 million. The answer is Rs. 6,591 per head cost of the dam. Now compare it with Rs. 170,000/= loan per head on the head of each living person in the country. The cost of dam is just 3,89% of the loan.
Do the math other way, Pakistan population is approx 200million. Cost of dam approx as Rs1.450 trillion. or RS1450billion or as Rs1450 000 million . So By dividing needed money by population it comes around Rs 725 000. If we allow 35% for poor or who cannot participate , average able persons has to shell out Rs 1 million per head. Is it possible . ?
650 Billion PKR for 200 Million people means only 3,250 per head, that too in several years. still seems a lot?
Agreed !
Makes sense!
I do not agree. When there is a WILL, there is a WAY. This nation is very resilient. If they want, they can DO it.
World over such projects have been part of five or seven year's development plan, and cannot be organised on ad-hoc basis or a spur of the moment Idea.
Once again it is proved water is more important then any matter. It's a basic need for human. Not understand since 70 yrs .
Pakistan needs to run advertisements in China to donate generously.China has a huge population.Even 1 Rupee per Chinese will translate to a lot of money.
The account for dam funding is an Idea that floated the social media for a while and the CJ adopted it. I wonder where is policy making?
On the contrary, if 5 crore people are taxed for Rs. 75 per day for one year; the target will be achieved. Do you Maths.
We are nation of 200 million, donate Rs.1 After every five day it's 200×5 =1000 million = 1 billion Now we require 600 billion so 600×5 = 3000 days which is 8.2 years , And if Rs. 2 per person per day then 4 Years, We can collect money in just 4 Years. Correct me plz
@Zeeshan Aamir Khan : Wholeheartedly agree with you ...
You said it perfectly: "Public finance is not a joke, the state cannot be run like a charity, and infrastructure finance cannot be crowd-sourced like this".
The state should have the guts to tax people. And the state needs to demonstrate to the people that their tax-money is being wisely spent. Then most people will willingly & honestly pay their taxes too.
Well! I'm sure honorable CJP is wise enough. Thanks for undermining otherwise an honest effort and discouraging many potential donors with your dumb maths. Do people think that crowd funding would generate enough money for building 2 dams? Answer is, No! And yet they are doing their part. Its all about individual contribution. Pity that you missed the whole point. Keep doing math!
Nowhere did CJP say that dams will be built solely from donated money. To me, it's an enlightened step that employees of GOP are being made to donate their salary for since they will be the number one people who will be looking after and inquiring the development of dams. Let the money go first from their pocket is the idea shows seriousness of the pursuit of building dams. Of course we can make more atomic weapons than Hindustan, we can make dams by relying on ourselves.
Author's opinion here in not the bigger picture for constructing dams.
To build anything in such a country where crowd is available possibly more, than crowd funding, the unemployed masses can be employed to do the work by providing of food, clothing and shelter while they work building the dam. Contracting out is the worst thing to do and is certainly a way of making things pricey i.e. waste of money. The planning, designing, procurement and building work will need to done by people employed by the Government directly if anything is to be achieved making it cost effective and avoiding wastages.
Well researched and based on facts and figures. But i disagree with the calculations, if only fifty percent of the total population do contribute a little amount, target will be achieved very soon. The issue is we never take public properties as our own. If this campaign would be by any religious party to built infrastructure, it would take hardly few months and people would contribute. Any how, time to change mind set, if we do persistently relay on past, we cant go for good things. Today's Pakistan is more vulnerable as compare to past
As usual, happy to read this author.
While the writer has correctly pointed out that public projects cannot be crowed funded, the point he has missed is that its not a funding issue the Chief Justice may be trying to resolve. These dams were not delayed because of an absence of funding but because of an excess of ill will, politics, wrong prioritization to a point that we are now close to death by starvation as a nation. Thus the efdorts of Chief Justice help build a national momentum which will strike down all the ill wills hindering the projects in the first place. While this may not be his core job, those whose core job it was have busy doing somethjng else. Bejng a matter of survival for the nation, his efforts are appreciated.
One ounce of action is better than hundered pounds of advices.
Hope the judge reads the article.
I hope Honorable Chief Justice will get time to read this article.
@Himmat Instead of surcharge expand tax base. Remove any loop holes and include every type of income. No exception.
INDIA has successfully launched dams project in joint venture with our east neighbour nepal. India want a prosperous and peaceful south Asia. India might help our western neighbour if Pakistan gives us kind gesture.
This is why there are taxes. If a project is worth doing, then fund it through taxes. If it is not, then don't build it. If the problem is poor management of the project, then that problem will still be there with private donations, as the author has pointed out.
This sounds more like school-boy math. If the state can run as a charity for the likes of our disgraced ex-prime minister and our ex-scalper from Karachi and enrich them beyond our wildest imaginations, why can't dams be built on the same principle with the same kind of help from the state?
Seal Nawaz Wealth in Pakistan and abroad and built the dam
I don't think that today people are in a position to contribute the billions. With uncertainty looming over everyone is holding on to their savings. We are talking about a big dam not a smaller one.
@naim "Big dams can only be built by borrowings from the world Ban or the Asia Dev Bank. But they don't really want us to have those dams as they would lose their grip on our economy as a consequence"
Really? The world is conspiring against us?
politics can only be done by this method
Dam building is a serious economical and technical ebdouver which CJP has made a joke out of it. Instead of this collection nonsense the CJP could help guide to find out the root cause why dams like Kalabag or others are not build. What are the obstacles and how to remedy or overcome these obstacles with sincere, professional and justly manner instead of doing politics of vested interests. He could have help to form consensus and trust among all stakeholders to design, implement and finance and make sure agreed procedures, rules and promises are fulfilled by all stakeholders. If foreign loans are needed then make sure money is judiciously used for the purpose. In short he could have form a commission under oversigt of the supreme court to force the government to build dams as a most priority task and make sure design, implementation and financing is done transparently with zero tolerance of corruption.
Crowdfunding will work for cleaning city or building hospital or school at small scale will work. Here simple solution is military spending needs to be cut by 10% each year, reduce force count by 10 % each year. Force spending needs to be in proportion of GDP and tax collection, else this kind of crowdfunding will require for all development work
@Ali Khan what is the current collection of all political party and religious places? For building DAM you need very big amount.
Its not about collecting money. Its more about showing intent and sensitivity. Plus by paying into a fund, the public who has been so far indifferent towards a dam become stakeholder. They become serious. Organizations and schools get involved. Rising awareness creates an expectation from the coming government. For example how many people even knew about the dam before the fund and how many know about it and want it complete now
Great read ,loved it !!!
Crowd funding can beat anything!
You have missed the point which mobilisation of masses through such initiatives We have other challenges to dam construction also which will be addressed through this initiative Take it as a referendum
Nonetheless contributions are not negligible as stated by you
@Azam I am stunned by your statement.
One has to take some action rather than sitting around. As you indicated in your artcle, elected governments as well as Musharraf did nothingin the past. At least CJP has taken a practicle step that will go a long way. Sialkot Airport was also people's initiative that was funded by people.
If you divide the total cost estimate of 1.45 Trillion rupees with 22 Million Pakistani's. It's about 6,500 rupees per head and if you count the 35% poor out then it will be close to 10,000 rupees per head and that my friend is very much possible. One thing that every one is missing is that CJP announced that the looted money will be recovered to assist with the project costs. Now let's do another calculation, just the Mayfair and Avenfield apartments are worth 22 Billion rupees. Have a little faith and let's make Pakistan Great! InshAllah
Before the World War 2, the Japanese government had a similar donation scheme in which the Japanese people donated every single spoon, plate and glass made of metal to their government which then was used to make fighter jets and war ships etc. Japan being a tiny island became so strong that the world powers were fearful of their mighty force. Moral: Nothing is stronger than a man's will to do anything!
Crowd funding usually doesn't work for such large projects
we have already funded Neelum-Jhelum Project.
Well presented article: One question from my side also..As suggested by author, the movement possibly die down in few months or years..Then what will happen to money which will be collected, It will simply go to the pockets of corrupt politicians.
I know who can finance these projects, two of the few are coming in today, make them all pay...
An excellent article. Should be read and circulated
Totally agree.. infrastructure development firmly in public sector.
@Zeeshan Aamir Khan "Simply outstanding. My point is we should get loan from China apart from crow funding" Pakistan tried to get funding from World Bank, ADB and USAID for Basha dam but was denied. China agreed to fund it but the terms were so onerous, that Pakistan backed out.
good and really thoughtful article. if the Dam cost alone is 1.45 trillion and pakistan can really make the amount why they would have taken 48 billion loan for CPEC. What will happen if in initial motivation the project may get started and will halt in between?
Such huge project may take min 7-10 years & to complete it requires political and social stability. Already the country is in debt trap of china. Its very easy to motivate people for funding but it is not practical as well stated in artilce
I worked at Mongla dam from start to finish this this was expected It is nice somebody realized. But. KALA Dam is absolutely necessary like Life & Death.
Brilliant article making the issue clear to understand even by a layman. Isn't it possible to recover all the looted/embezzled money and allocate it to the construction of the proposed dams instead. People of Pakistan will contribute, however, the desired aim can not be achieved by contribution.and as mentioned by Khalid Azhar if BISP which is 125 Billion for 2018/19, mainly used for political workers only, is diverted could reach the target.
Read this artical
Good analysis
The author has made a plausible point. However, an optimist can count on initially meeting an year's funding needs alone. The subsequent progress on the project-work may serve as an inspiration to donors to not only continue the noble work but also inspire other citizens to meet future funding requirements. In the absence of debt becoming available from traditional sources -- World Bank etc -- for an essential project of such huge size, we are left with no other options but to look for innovative funding sources.
Perfect calculation with adorable knowledge. Brilliant article
Perfect Calculation with adorable knowledge, why public should donate foe dam when we are paying taxes at everything, even in each liter of petrol we are paying tax of more then 50 rupees, so where all these taxes are going! where political parties funds are going? Doesn't make any sense, seriously
A much-needed analysis which must get attention
Let's ask those who have initiated this noble national cause. They should also have done some math. If not, then there is hardly any hope of its success.
Well calculate. But I am afraid this may disseminate pessimism. There is no good in maligning a good initiative, even though it might look irrational. No government did the needful for the last 50 odd years in this regards. If CJP has taken an initiative, let's be optimistic and spread optimism. This article is counter productive, as in comments section, some people are regretting that they have donated, and some are showing there intentions not to donate, thanks to your cynisism.
The whole affair is a textbook example of what is wrong with Pakistan. People who are paid for one thing are doing things for which we are already paying others. This never ends well. Secondly, if the person is realy interested in funding the dams, easier way is to force the state machinery to shrink itself. In a single tehsil we are two PMS or CSS officer only to issue domicile certificates. KP's recently ended govt was running each department with two secretaries and also added one buearucrat in each tehsil for sports.. imagine that. Additionally, they added "administrative/executive" allowance to babucracy's salary with 21 grade receiving 1 lac 6 thousands and so on.