ADB okays additional $48m financing for water project in Balochistan

Published
1
The Asian Development Bank.— AFP/File
The Asian Development Bank.— AFP/File

The Asian Development Bank (ADB) has approved an additional $48 million loan for the Balochistan Water Resources Development Sector Project (BWRDSP), according to a press release issued on Wednesday.

In September, the Central Development Working Party had cleared the Rs49.9bn project for the Zhob and Mula river basins. At the time, participants were told the project would be financed through an ADB loan of $148m (78.99pc), an ADB grant of $5m (2.67pc), and a government contribution of $34.37m (18.34pc).

On Tuesday, the Exe­cutive Committee of the Nat­­i­onal Economic Cou­ncil had approved the project.

In the press release issued today, the ADB said the additional funds would support the completion of critical components of the project, including the Churi Infiltration Gallery subproject, the development of Siri Toi Dam command area, and watershed management activities, adding that work on the components had been “previously delayed due to budgetary constraints”.

“These components are vital for enhancing irrigation efficiency, promoting sustainable water use, and mitigating soil erosion caused by floods,” it said.

The press release further said: “An innovative piped water distribution network will also be introduced in the Siri Toi command area.

“This system promises higher efficiency, reduced conveyance losses, and improved service delivery compared to traditional open-channel systems.”

The ADB projected that once completed, Siri Toi Dam in the Zhob River basin would provide a storage capacity of 36 million cubic metres of water, significantly improving reliable water availability.

“This will ensure efficient and equitable water delivery for domestic and agricultural use across 16,592 hectares of the command area, including 1,839 hectares under khushkaba (rainwater harvesting) farming systems,” the press release said.

It further detailed that “to enhance long-term sustainability, the project incorporates watershed management measures such as afforestation, soil conservation, and the construction of check dams, to reduce land degradation and improve flood management within the dam’s catchment area”.

It further stated that additional financing for BWRDSP was aimed at building on the “project’s earlier successes in strengthening irrigation infrastructure and improving water resource management in Balochistan”.

The press release highlighted that the province faced “severe water scarcity, exacerbated by economic challenges and climate impacts”.

“Agriculture, which forms the backbone of Balochistan’s economy, contributes nearly two-thirds of the province’s economic output and employs 60 per cent of its 13 million residents. However, frequent droughts, water management capacity issues, and climate vulnerabilities have put livelihoods at significant risk, with regional poverty rates nearly twice the national average.”

The press release quoted ADB Country Director for Pakistan Emma Fan as saying: “The ongoing project, for which additional financing has been approved, focuses on the Zhob and Mula river basins. This project supports livelihoods and creates improved economic opportunities, particularly for women engaged in agriculture.”

The project is cofinanced by the Japan Fund for Prosperous and Resilient Asia and the Pacific — funded by the Government of Japan through ADB — and the High Level Technology Fund, the press release said.

It added that the project “aims to establish a climate-resilient and sustainable water resource management system in Balochistan, ensuring long-term benefits for the province”.

Follow Dawn Business on X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Narrative confusion
Updated 14 Oct, 2026

Narrative confusion

The centre must say clearly how long it intends it to last, what it hopes to achieve in that time, and how the province’s elected mandate will be restored.
El Niño’s long reach
14 Oct, 2026

El Niño’s long reach

THE extraordinary El Niño gathering strength in the Pacific could make 2026 the hottest year on record, with 2027...
Deeper poverty
Updated 14 Oct, 2026

Deeper poverty

PAKISTAN’S poverty crisis is far deeper than official indicators suggest. While the government celebrates economic...
Yemen escalation
Updated 13 Oct, 2026

Yemen escalation

Such an agreement can also help bring peace to Saudi Arabia, while ending Yemen’s humanitarian nightmare.
Inequitable taxation
13 Oct, 2026

Inequitable taxation

FINANCE Minister Muhammad Aurangzeb has once more reviewed the latest incentive scheme to bring retailers into the...
Taxila’s hidden past
13 Oct, 2026

Taxila’s hidden past

A HILL dismissed more than a century ago as an unremarkable heap of ruins has yielded one of Taxila’s most...