Finance: Water conservation with a touch of realism
A number of issues are attributed to delays in construction of much needed water reservoirs that could have prevented colossal losses from floods. These include the problematic acquisition of the necessary land or the lack of capacity of executing agencies. However the main hurdle in the progress is stated to be a lack of funds.
As “the federal government bears around Rs716 billion in expenses on behalf of the provinces” Planning Minister Mr Ahsan Iqbal says, “this significantly shrinks our fiscal space. Right now, we are facing a major challenge. Projects like the Diamer-Bhasha Dam and Mohmand Dam, which are vital to our water security, cannot be completed swiftly due to insufficient development”.
Mr Iqbal has called upon the provincial governments to hammer out a formula that eases the federal government’s financial burden and enables it to complete these important projects. Unfortunately, Pakistan has also not been able to secure the required multilateral or bilateral funds for construction of big dams.
According to initial proposals the Diamer Bhasha Dam and Mohmad Dam are included in the projects being finalised to lure United Arab Emirates’ investment. In June, Prime Minister Shehbaz Sharif chaired a high-level meeting where he directed authorities to remove all obstacles hindering the timely completion of the Diamer-Bhasha Dam, calling it vital for Pakistan’s energy and agricultural security.
Small dams can be significantly more effective for managing heavy rainfall
Construction engineers say the dam, with a 6.4 million acre feet (MAF) capacity, will not be operational until 2029 or 2030, by which time water demand could increase and the dam would only be able to reduce the shortage from a projected 35 per cent to around 25pc.
They point out that Pakistan lacks the capacity to store the hundreds of thousands of cusecs of water that goes wasted during the monsoon season. No major reservoir was built in the past 40 years nor have our water usage methods improved. Over 80pc of the country’s arable land is irrigated by Indus waters. Moreover, topography and seasonal rainfall often combine to produce deadly torrents. For communities living in these areas, small dams are the bulwark in their fight against climate change and flash floods, and their best bet at water conservation to fulfil local irrigation needs.
There is also a significant though troubling view: “The government is working on water reservoirs, but not with the urgency the task demands”. In the current financial situation, it is also argued by certain experts that the focus should shift on small dams. Hydrology experts say they are more cost effective and can be constructed in a much shorter time.
Large dams take years to build and require financing in billions of rupees, says the Khyber Pakhtunkhwa (KP) Irrigation Department Engineer Abdul Waheed Khan. “However”, Mr Khan adds, “a network of small dams, if strategically placed, can deliver significant flood protection at a fraction of the cost. Pakistan is already blessed with several natural sites for the construction of small dams.”
‘The government is working on water reservoirs, but not with the urgency the task demands’
These small dams could easily be constructed in a short span of two to three years while big dams mostly require 10 to 15 years, says Civil Engineer Fahim Munawar, an expert in dam construction in KP. Small dams are becoming popular in developing countries due to their affordability. Pakistan may require additional 76 MAF water by 2050 which, he says, is only possible by constructing small dams.
Furthermore, experts emphasise that of the current available surface water, the amount allocated to agriculture must be reduced, noting that of 135 MAF of surface water, 102 MAF, or nearly 94pc goes to agriculture alone. China, for example, they add, has brought it down from over 90pc to 60pc. In this case, efficient irrigation methods that could improve the percentage, largely under provincial jurisdiction, have yet to be implemented.
While the World Bank has funded efforts such as concrete canal delivery systems, they point out that actual progress on the ground remains limited. Command area development activities are underway but remain unsatisfactory.
Even small dams cannot be built for want of funds in Sindh where only a few retention weirs located in Kohistan and Nagarparkar are constructed by the Sindh Irrigation Department under Small Dams Organisation (SDO), say officials of the department. SDO, they add, has carried out a number of feasibility studies of hydraulic structures and selected more than 200 potential sites for construction of small, medium and delay-action dams, and retention weirs in the Kohistan region and Nagarparkar, as well as the Ubhan Shah Hills in district Khairpur.
Beyond that, the SDO requires huge funds to implement the proposed schemes on a massive scale and complete it in the next five years to reduce poverty in arid areas. Officials expect Nai Gaj dam, another large dam project, to be completed by the Water and Power Development Authority within three years.
Published in Dawn, The Business and Finance Weekly, August 4th, 2025