ISLAMABAD, Feb 1: The World Bank has asked Pakistan to set up a water regulatory authority for proper pricing of canal water and to build large dams keeping in mind the wishes of the people, it is learnt.

Informed sources said that the World Bank told a stakeholders' meeting here on Tuesday that a water regulatory authority on the pattern of National Electric Power Regulatory Authority (Nepra) or Oil and Gas Regulatory Authority (Ogra) should be established to properly price the water as a commodity.

The bank had arranged a meeting of over 60-stakeholders from across the country to finalize its Water Sector Assistance Strategy for Pakistan. The stakeholders were drawn from non- governmental organizations, Indus River System Authority (Irsa), Nepra, technical committee on water resources and farmers community.

The sources said the proper pricing of canal water through a regulatory authority would greatly help improve existing water distribution, maintenance of the system and sustainability of environment and management of water resources, the bank informed the participants.

The bank was of the opinion that canal water cost was more than 20 per cent lower than the tubewell water that resulted in inefficient use of canal water. The regulatory authority should create a balance between the canal water irrigation and tubewell water.

The bank also suggested that water uses should be allocated on the basis of per capita consumption so that every farmer or citizen was ensured his due water use rights. The bank's main stress was on improvement of management and distribution of water resources both in terms of irrigation system and relevant institutions.

The focus of the presentation was that water charges or abiana should recover the operation and maintenance costs in the short run and to develop new system in the longer run. The bank, in its presentation, also highlighted the importance of future dams in the country but emphasised that new dams should be built in consultation with the people at large.