Country (Policy) Dialogues (With Special Reference to Pakistan)

Transcription

1 INTERNATIONAL WATER CONFERENCE Hanoi, Vietnam, October 14-16, 2002 Country (Policy) Dialogues (With Special Reference to Pakistan) By: Mirza Hamid Hasan

2 Country (Policy) Dialogues (With Special Reference to Pakistan) Mirza Hamid Hasan Introduction The growing need for more fresh water in countries across the world for agriculture, drinking, sanitation and industrial uses necessitated by increasing population, rapid urbanization and industrialization of developing economies is placing ever increasing pressure on limited water resources of the globe. This has highlighted the need for better and more integrated management of water resources. On the other hand the very factors mentioned above are not only competing with the need and demand for adequate water for sustaining and protecting the environment and the eco-system, they are also, in many ways, causing considerable damage to the urban and rural environment, the wildlife, flora, fauna and land, through excessive, indiscriminate and improper use of water. It is therefore a matter of utmost urgency to create a sustainable balance between competing demands on water resources. The only means to achieve this objective is an informed and rational dialogue between various stake holders, particularly between the leaders of the agricultural communities and the protagonists of environmental protection and conservation. This is necessary from the view point of assessing and determining the legitimate needs and requirements of each water sub-sector, and to evolve mechanisms, practices and technologies that would satisfy the requirements of each one of them. It has to be a win-win situation for all to be a sustainable solution. 2. The need for such a dialogue has long been felt, and infact it has been taking place for quite some time in the industrialized countries. But unfortunately it has not been held at a sufficiently high and decisive level in most of the developing countries, where it is needed the most. The recent deliberations of World Summit on Sustainable Development (WSSD), have further focussed on the need for such a dialogue, to ensure sustainable water management for agriculture, domestic and industrial needs as well as for preservation of the environment. 3. It is indeed heartening to note that the need for such a dialogue is now felt widely and a process of sustained discussions and consultations at international as well as national levels is gaining ground. The gathering of such a large number of distinguished delegates from so many countries at this conference is a proof of the importance attached to this issue by countries across the world. 1

3 Water Sector in Pakistan Role of Water in the Economy (a) Agriculture: 4. Agriculture is the largest sector of the economy, with primary commodities accounting for 25% of GDP and 47% of total employment, and contributes more than 60% of foreign exchange earnings. The water sector has played a major role in the development of the agricultural sector, which will continue to be the main user of water for the foreseeable future. (b) Industry: 5. Manufacturing accounts for 17% of GDP, though textiles, which is a secondary product of agriculture, accounts for a considerable portion of this sector. As this share increases over time, an appropriate balance will be needed to ensure both irrigation supplies to produce the raw materials for industry, and adequate supplies for industries themselves. Effective pollution control will also become increasingly important. (c) Hydropower: 6. The water sector also makes a substantial contribution to power generation. Hydropower accounts for 5,009 megawatts (MW) of the total installed generation capacity of 17,980 MW (although actual production is somewhat lower, at an average of 3745 MW). WATER AVAILABILITY The Indus River Basin 7. The Indus Plain, where most of the irrigated agriculture of Pakistan takes place and most of the population (80 to 85 % of the total) is centered, covers about 77,993 square miles (202,000) km 2, which is about 25.4% of the total land area. The Indus Basin Irrigation System commands an area of 36.2 million acres (14.64 million hectares) and, as such, is the agricultural and economic center of the country. 8. The Indus River and its tributaries, namely, Jhelum, Chenab, Ravi, Sutlej and Kabul, on average bring about MAF (187 BCM) of water annually (map of rivers at Figure-1). This includes MAF ( MAF) from the three Western rivers and 2

4 8.40 MAF (10.37 BCM) from the Eastern Rivers. Most of the inflow, about MAF ( BCM) is diverted for irrigation, 38.01MAF (46.89 BCM) flows to the sea and about 9.9 MAF (12.2 BCM) is consumed by the system losses which include evaporation, seepage and spills during floods. The flows of the Indus and its tributaries vary widely from year to year and within the year. As is the case with the water availability there is significant variation in annual flows into sea. The Irrigation System 9. Pakistan has the oldest and largest integrated irrigation network in the world. It comprises of three major reservoirs, namely, Tarbela (7.226 MAF live capacity) and Chashma on River Indus, and Mangla (4.564 MAF live capacity) on River Jhelum; 16 barrages, 2 head-works, 2 siphons across major rivers, 12 inter river link canals, 44 independent irrigation canal commands, and more than 107,000 water courses (schematic diagram may be seen as Figure-2). The aggregate length of the canals is 34,834 miles (56,073 Km). In addition, the watercourses, farm channels and field ditches cover another 1 million miles (1.6 million Km). 3

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7 Groundwater 10. The System utilizes an estimated additional 41.6 MAF (51.3 BCM) of groundwater pumped through more than 600,000 tube wells (mostly private) to supplement the canal supplies. In addition, there are over 200 civil canals in NWFP Province, which irrigate about 0.82 Ma (0.33 Mha) and are managed by local tribal populations. 11. Outside the Indus Basin, there are two smaller river basins in Balochistan. The total inflow of the two basins is less than 4 MAF (5 BCM) annually. The streams are flashy in nature and do not have perennial supply. About 25% of the inflow is used for flood irrigation Future Requirements 12. At the time of independence in 1947, the surface water utilized for irrigation was 67 MAF (82 BCM), which has increased to MAF ( BCM) in year The increase in water utilization, though substantial, did not match with the increase in water requirements due to population explosion which increased from 32 million in 1947 to 141 million in It is estimated that at the present rate of population growth, it will increase to about 221 million by the year The per capita water availability is estimated to decrease from 5000 m 3 per year in 1947 to 900 m 3 in year 2010, if no major water development project is implemented during this period. 13. At present the irrigation system on the average supplies about 11% less water than the actual crop water requirements. The shortages in current supplies of the order of 51% are reflective of the serious shortages experienced during the last three years due to drought and lack of capability of the system to fill the gap during the dry years. The following table depicts the estimated future water requirements and shortfall even after improvement measures in water use efficiency and enhanced pumpage of underground water. 6

8 FUTURE WATER REQUIREMENTS Requirement/Availability Net Water Requirement Year 2000/ / /25 BCM MAF BCM MAF BCM MAF Net Irrigation Water Requirement Groundwater Availability for Consumptive Use Net Surface Water Requirements for irrigation Irrigation Efficiency Canal Head Requirements Mean Annual Surface Water Available Shortfall Shortfall ( %) Wetlands 14. Wetlands are among the world s most productive ecosystems and provide economic and environmental benefits to agriculture, horticulture and animal husbandry. In Pakistan, wetlands exist in riverside ecosystems, coastal and tidal wetlands in the Indus delta, mountainous springs and lakes, scattered ecosystems and lakes in the plains and the man-made reservoirs barrages and dams. Many wetlands in Pakistan have been protected by declaring them sanctuaries, games reserves or national parks. There are at least 14 major lakes of national and international importance including Manchar and Hamal Lakes. Irrigation Development Works 15. Massive water development projects were undertaken in the country as a result of the Indus Water Treaty of Nearly two dozen large irrigation projects have been completed, which include the construction of Tarbela and Mangla dams, 8 link canals and 6 barrages, to harness the country s water resource potential. Execution of two major surface water projects is in progress. With the substantial completion of Chashma Right Bank Irrigation Project (Stage I III), water has been made available for irrigation to estimated 404,000 acres of barren areas in Districts D.I. Khan and D.G. Khan, while additional 166,000 acres would be irrigatable when the project is completed in October 7

9 2002. The Pehur High Level Canal Project is also under construction, which on completion will alleviate the shortages of irrigation supplies within the existing command area of Upper Swat Canal System in NWFP province. All this takes care of the food and fibre requirements of Pakistan s existing population, as well as serve agro-based export commodities. Environmental Impact of Irrigation Waterlogging and Salinity 16. A rapid expansion of irrigated agriculture on the Indus Plain from the end of 19 th and in early years of the 20 th century has caused a progressive rise in the groundwater table and salt build up. At present about 30% of the irrigated lands are waterlogged with water table depth less than 10 feet, while about 9% of the cultivable land is badly waterlogged with water table depth less than 5 feet. At present only about 27% of the average annual salt inflow of 33 Mt of salts brought in by the Indus and its tributaries are washed out of the system. Of the incoming salts about 24 Mt are retained in the Indus Basin, with 13.6 Mt. in Punjab and 10.4 Mt. in Sindh. These figures do not include salt mobilization by the large number of fresh groundwater tubewells, which are directly dumping the salts onto soils. The Drainage Sector Environmental Assessment Study (DSEA) estimated that about 24.7 Mt. of salts are mobilized in Punjab by fresh groundwater tubewells and another 3.5 Mt. of salts are mobilized by tubewells in Sindh, annually. This continuous addition of salts to agricultural soils has affected not only the socio-economic condition of the farmers but also created an unhealthy environment. About 2.5 million acres of irrigated land is affected by severe salinity. 17. Water logging and salinity are thus massively damaging the environment as well as posing serious threat to the sustainability of the irrigation system. In the 1960s the Government embarked upon a programme of Salinity Control and Reclamation Projects (SCARPS). Some 13,500 tube wells were installed by the Government, most of which have now become non-operational for various reasons and are being transferred to the private sector under a well planned transition scheme to re operationalise them. 18. A National Drainage Programme (NDP) was started in 1998 at a cost of Rs 31.4 billion for the first phase and is currently under implementation. It aims at reduction in drainage surplus and environmentally acceptable disposal of drainage effluent through an integrated system of surface drains. The overall programme is estimated to cost Rs 150 billion and is being co-financed by the World Bank, Asian Development Bank (ADB) and Japan Bank for International Cooperation (JBIC). 8

10 Loss/degradation of Wetland 19. Some of the wetlands have been negatively affected due to the development of water resources projects, especially the ones located at the downstream end of the Indus system. Fears have been expressed that reduced flooding and discharge of polluted drainage effluent into these water bodies may adversely affect wetland ecology. The Government of Pakistan in recognition of the situation is making all efforts to avoid disposal of saline effluent into these water bodies. This is evident from the fact that two major ongoing drainage projects, namely, Left Bank Outfall Drainage (LBOD) and Right Bank Outfall Drainage (RBOD) have been extended/planned to be extended right upto the sea to dispose off the drainage effluent. Floods 20. Flood control planning in Pakistan is a complex issue and calls for ingenuity and experience on part of the planners. The nature of flood problems vary at different locations due to changing physiographic, climatic, demographic and socio-economic conditions. Flood protection embankments are constructed wherever over bank flooding is the major problem, while spurs are constructed to encounter the land erosion and regulate the river through main course where this phenomenon is predominant and excessive meandering in the river course takes place. The Federal Flood Commission was established in 1977 to coordinate the financing of flood protection schemes throughout the country. A total of 5,822 Km of embankments and 363 No. of spurs have been constructed along the rivers in Pakistan. There has been significant improvement in flood warning and forecasting system by way of addition of weather surveillance radars and automatic gauging and telemetry system. Plans are underway to construct additional flood protection and river training works along vulnerable reaches, and to extend and supplement and improve the weather radar data collection and telemetric system for timely forecast of floods and to increase response time for required actions to mitigate damages. Efforts are also underway to create public awareness and participation in the overall flood management strategy in the country. ISSUES IN THE WATER SECTOR NEEDING SOLUTION 21. Due to heavy dependence of the country on agriculture, water is a scarce resource in Pakistan despite having an extensive irrigation infrastructure. The inflow to river Indus and its tributaries which are the main source of surface water, is mainly derived from snow and glacier melt and monsoon rainfall in the catchment areas. The average annual inflow of three Western rivers at the rim stations is around 143 Million Acre Feet (MAF) and Eastern Rivers contribution is about 8.4 MAF annually. Due to rapid increase in population, the per capita water availability is progressively declining and very soon Pakistan will touch the 1000 m 3 per capita water stress situation of Falkenmark s 9

11 indicator. The flow of river Indus and its tributaries vary widely from year to year and from one the crop season to another. The present canal diversions are about 104 MAF. Following are the major issues confronting the government in the water sector: Live storage capacity in the major storage reservoirs, Tarbela and Mangla has decreased from the initial MAF to MAF due to siltation and is estimated to fall to only 9.96 MAF by the year 2025, thus seriously reducing the country s capacity to store water for major crops in the lean season. This would cause a major shortfall of supplies in the water short period (October-March) when river inflows are only 18% of the total inflow of the year. Water use efficiency in crop production is as low as 40% thus putting extra strain on the already deficient agriculture sector. The tremendous increase in rate of population growth (2.7%) is estimated to result in its increase from the present 141 million to 221 million by year A large proportion of the population will also shift from rural areas urban areas. This puts enormous load on the already scarce water resource in both urban and rural areas and a challenge to meet the food, fiber and domestic requirements while also sustaining the environment. At present, the utilization of water for irrigation is 104 MAF, which is estimated to rise to 124 MAF by year 2025, while there would be no change in the total water availability. Besides there would be a greater competing demand of urban water supply and industrial use. Water quality is one of the leading problems in Pakistan. While large volumes of underground water cannot be pumped for irrigation due to being brackish, access to clean domestic water in the urban and rural sub-sectors is also low in service as well as quality. There is heavy dependence on groundwater pumpage (41.6 MAF) in sweet water zones which has led to depletion of aquifer and quality deterioration in some areas. In addition to the above, the following Management and Technical issues hamper the development of this sector: Lack of financial sustainability i.e. the investment in this sector does not become self-sustaining owing to low tariffs and still lower recoveries owing to the social structure and low paying capacity of the populace. 10

12 Deficient public management of the irrigation as well as urban water supply system i.e. infrastructure and activities. This can be attributed to low investment in the sector, limited stakeholder participation and poor public awareness. Deteriorating irrigation and drainage infrastructure due to inadequate investment in the Operation & Maintenance of the system on account of financial constraints. Environmental degradation caused by old and faulty irrigation techniques, lack of adequate drainage of waterlogged and saline areas, environmental pollution caused by the discharge of untreated industrial affluents and domestic sewage into fresh water stream or open areas. Meeting the Challenges 22. In order to meet the daunting challenges, some of which have been listed above, the Government of Pakistan has embarked upon the formulation of a National Water Policy and a National Water Sector Strategy to give effect to the proposed Policy. The formulation of both these documents, which started more than a year ago, involved identification of a number of issues; recognizing, bringing together and associating the stakeholders in various sub-sectors and issues; identification and recognition of the constraints hampering the development and management of the water sector in a holistic and integrated manner, taking care of legitimate as well as perceived interests of various communities, water user groups and other stake holders, environmental activists and advocacy groups, and finally initiating a process of dialogue and discussion with all or most of them to achieve consensus at sustainable policy objectives and workable strategies to achieve those objectives. National Water Policy 23. Having identified the issues, the following vision for the water sector was conceived as the guiding force for the National Water Policy:- By year 2025, Pakistan should have adequate water available through proper conservation and development. Water supplies should be of good quality, equitably distributed and meet the needs of all users through an efficient management, institutional and legal system that would ensure sustainable utilization of the water resources and support economic and social development with due consideration to the environment, quality of life, economic value of resources, ability to pay and participation of all stakeholders. 24. Following have been identified as the major policy objectives:- 11

13 (a) Technical Promote an approach to planning and development that will ensure availability of water to all elements of society preferably to the poor and underprivileged segments including women and children on sustainable basis. Promote planning and development of water resources that will involve comprehensive and integrated analysis of all technical, social, environmental and institutional factors and address the needs and interests of all the stakeholders. Adopt the principles of Integrated Resources Management (IWRM); Equity between; rural and urban, agriculture and industry, human and environment, downstream and upstream users integrating surface and groundwater resources. Promote conservation of water to the maximum extent possible. (b) Development Adopt the principles of Integrated River Basin Development to ensure that all aspects of water are taken care in decision making for water resources development. Water resource plans for development should be prepared in view of the following considerations: In co-ordination with the policies and projects of other sectors, both public and private; Conjunctive use of surface and groundwater resources; In accordance with established planning and regulatory zones; In accordance with Manuals of Good Practice; and Exploit untapped freshwater resources of country to meet the growing requirements. Develop additional storage to improve water resource availability in relation to demand giving due considerations to all factors including environment. 12

14 Assess the impact of climate change on water resources development and account for the impacts in future water development strategies. ( c) Potable Water Supply and Sanitation All people have access to potable water and sanitation services at an affordable cost by 2025, which is essential to safeguard, improve and develop public health and people s living standards. Potable water supply and sanitation are developed in a sustainable manner, which promotes the equitable and efficient use of available water resources while protecting the environment. (d) Irrigated Agriculture Sufficient food is available to meet Pakistan s growing food requirements and food security. Food production is focused to have sufficient stocks for export to achieve high economic growth. Water for irrigated agriculture is targeted specifically to agricultural production. The efficient use of water is emphasized. Costs of supplying irrigation water, especially for O&M, are financially self-sustaining. Horizontal expansion in agriculture dictates that water resources be developed and additional supplies ensured to alleviate abject poverty in the villages and to improve poor health conditions. (e) Water for Industry Sufficient water will be made available to industry to promote industrial and economic development. Disposal of industrial wastewater is regulated and the polluter pays principle is adopted. (f) Stakeholders Participation Promote active participation of stakeholders in all aspects related to water. 13

15 Promote partnership between the public and private sectors in the water sector. (g) Environmental Promote the protection, restoration and preservation of the natural environment and its biodiversity including wetlands, mangroves, national parks and water quality as part of future development and management of the nation s water resources. Promote measures, as part of future plans for water resources development, that reduce or eliminate contamination of surface water bodies and groundwater aquifers from industrial and domestic emissions of pollutants, over-use of agro-chemicals and urban run-off all of which adversely affect water quality, natural eco-systems and public health, and Ensure that all agencies responsible for the planning, design, implementation, operation and maintenance, and regulation of water resources development will be responsible for enhancing and protecting environmental assets and amenities and water quality. Policy Dialogue 25. Having laid down the objectives, it was considered unnecessary to list the constraints likely to hamper the achievement of objectives through an agreed and practicable action plan. Without the understanding and cooperation of all stakeholders and agreeing on the issue and the constraints, it was considered that the policy and the implementation strategy may not really take off. Time had therefore come to initiate a process of dialogue with all the interest groups and stakeholders, as well as managers of the water sector. The primary constraints in the achievement of the objectives of the proposed policy were considered to be as follows: 14

16 - Poor project implementation; - Scarcity of water; - Lack of consensus and cooperation between the provinces and between the - provincial and federal agencies; - Poor information availability; - Overuse of water in certain areas and insufficient efforts in conservation; - Design of irrigation systems; - Inequitable distribution of water; - Low cost recovery and insufficient maintenance of infrastructure; - Weakness of institutions; - Lack of stakeholder participation. 26. The process of dialogue and consultation had to be undertaken painstakingly and had to be conducted in stages involving the following steps:- i) The Policy formulation team going out to meet individually and collectively the interest groups, user groups, stakeholders and managers of the water sub-sectors to exchange views about the issues in the water sector, in order to understand their correct nature and complexities and ascertain both common as well as divergent views of various groups about the issues and their possible solutions. ii) iii) iv) Sending out proformas, questionnaires and write-ups to the concerned groups to invite their views in writing on the issues and problems as perceived by the policy formulation team as a result of their discussions and interviews and the proposed solutions and writing their views and comments on it. Preparing a preliminary document listing the problems and issues, the proposed solutions, the views of stakeholders and others and throwing it open in a seminar for discussion to further sharpen the identification of issues, possible solutions, gauging the conflict of interest of different groups in different solutions and requiring the preliminary ideas in order to achieve of a compromise or consensus that would be acceptable to all stakeholders. Following the above process by preparing a detailed draft policy document and throwing it open for discussion, comments, suggestions in seminars/workshops to be attended by all interest groups and stakeholders. 15

17 Simultaneously posting the draft document on a web-site for wider dissemination and invitation of views and comments. Guiding Principles of the Dialogue Stakeholder Participation and Public Awareness and Understanding 27. (i) The development of the water resources of Pakistan and the water using sub-sectors is undertaken specifically and only for the people of Pakistan and the support of their health and economic and social development. (ii) It is necessary to enhance the participation of all water stakeholders: those with an active involvement in water use, such as farmers and rural communities who manage their own water systems, as well as those who rely on water services for their health and livelihoods. (iii) There have been and will continue to be difficulties in developing functional farmer management of irrigation systems. International experience with irrigation management turnover and participatory irrigation management has been mixed. In developing countries, in particular, the actual progress achieved has often been much below expectations. However, the process should continue to be promoted with full farmer participation in the development of what will be their responsibilities. Their level of involvement in management will evolve, though government is likely to continue to be the major partner in irrigation management. (iv) The principles and practice of user participation in rural water supply and sanitation are now becoming well established. Its role in urban water supply and sanitation is likely to remain limited, however, because urban systems lend themselves better than rural systems to operation on commercial lines. This situation is reflected in the strategy proposals made for these sub-sectors. (v) To effectively participate at all level; the public must be aware of and have an understanding of the issues in the water sector and their rights and responsibilities within central component of the proposed Strategy. They have been included in the subsectoral strategies of water resources development, urban and rural water supply and pollution control and environment. Political Legitimacy 28. It is easier, faster, and more pragmatic to resolve issues on the basis of political legitimacy in which all parties can be convinced that a certain approach is fair, transparent and appropriate, based on known standards or criteria independent of the vested interest of any party. 16

18 Changing Conflict to Cooperation 29. Pakistan s water resources are shared amongst the four provinces and need to be developed and managed in an integrated and holistic manner in keeping with the principles of integrated water resources management. The increasing water demands have the potential to lead to conflict if not managed with due consideration for all water users, including the environment. Inter-provincial insecurities regarding water sharing have led to near stagnation of the development of the water sector. There is a need to strengthen the political process required to bring about the much needed reforms and changes, many of which will not be popular and will meet with obstruction from various quarters. 30. Agriculture will continue to be the largest user of water in Pakistan and one of the key elements of the Strategy is to conserve water used for agriculture through increasing irrigation efficiencies. This will require a concerted effort on the parts of both irrigation and agriculture departments and their cooperation and collaboration will be crucial to its success. Improving cooperation, coordination and collaboration between irrigation and agriculture is a key recommendation in the strategy for both agriculture sector and the irrigation sub-sector. 31. Of crucial importance is ensuring the long-term sustainability of all water sector infrastructure and services. To achieve this, there will need to be a great improvement in the public sector cost recovery, especially for the recurrent costs of O&M, improvement and modernization and extension of services, as well as capital costs in some sub-sectors. 32. A unique demonstration of political legitimacy vis-à-vis mutual cooperation and national spirit was witnessed in 1991 when the Water Accord was signed by all four provinces, which resolved the 70-year old issue of water sharing. The same political will and consensus are being evolved to pave way for the construction of future storages in Pakistan. Creating Incentives 33. Every stakeholder and interest group has to be assured that his interests are being protected. In case he has to make a sacrifice in national interest to forego his share of water for a more important sub-sector, sufficient incentive should be given to him to do so in order to enlist his full and unreserved cooperation. Creating Commitment 34. A strong commitment at every level of the Government and on the part of all the stakeholders is necessary in order to have a sustainable water management system which would take care of the needs of agriculture, domestic uses and environment in a balanced 17

19 and effective manner. Commitment to environmental causes needs to be strengthened further to achieve this balance. Role of Information 35. It is not a regular practice to inform the public about water related problems or involve them in decision making unless it is required as a part of a donor-funded project. Water resources are managed by federal and provincial governments through their related agencies with little or no public involvement. This includes determining the location of dams and barrages, the size of reservoirs, rehabilitation of canals, arrangement of spurs, diversion of rivers, link canals, etc. People are seldom involved, even in the case of resettlement or transfer of operation and maintenance. 36. Information to the public on water related matters is now becoming more widespread. There is a need for improvement in dissemination of information so that benefits can accrue from the research that has been conducted/ or is being carried out in the fields of water resources management, irrigation practices, crops varieties, etc. There is no opportunity for public participation in decision-making and water resource management. Consensus Building Efforts for Storages 37. The Report of the World Commission on Dams demonstrated that future for water and energy resources development lies with participatory decision-making, using a rights-and-risk approach that will raise the importance of the social and environmental dimensions of dams to a level once reserved for the economic dimension. The following elements are key to better informed negotiations: All participants should have a clear and, to the extent possible, common understanding of the issues to be negotiated. Workshops involving scientists with the participation of the main negotiators concerned would greatly help to establish a common analysis and a more general understanding of the issues involved. Stakeholders must participate in the negotiations. Actions related to river basins, in particular if they involve construction of dams, will have considerable effect on populations in the area. This participatory approach is essential within the national context. The importance of a broad approach to development. Spatial planning around the river basin management as such, involving transport links, urban developments, particularly sensitive nature areas, just to mention some components, becomes an important complement to the efforts of agreeing on principles for sharing waters. 18

20 Macro-and micro-economic analysis plays an important role to the extent that economic consequences of different lines of action can be projected, negotiations will be better informed and the prospects for cooperation instead of conflict will increase. The land/water linkage is important for its impact on the quality and quantity of water. This is obvious in the case of irrigation. Negotiations must be based on an integrated approach that establishes common criteria for the long-term management of land and water. The principal task is to find adequate ways to deal with environmental preconditions while satisfying human and social needs. 38. Pakistan requires additional storages of 15 MAF (18.5BCM) by year 2025 to fulfill the water needs for all sectors, particularly agriculture, and to replace lost storage in the existing reservoirs. One of the major concerns voiced by national and international communities is that dams are not environment friendly as they involve the displacement and resettlement of local population. The Government of Pakistan, recognizing the importance and sensitivity if this issue, has recently drafted the Resettlement Policy of Pakistan. This has been clearly demonstrated in the recently approved Mangla Raising Project, which involves resettlement of about 43,800 persons. The Resettlement Action Plan has been prepared in light of the guidelines provided in the policy, and in consultation with the stakeholders. An unprecedented liberal compensation package has been developed for the affectees. For resettlement of the displaced population, a New City has been planned with modern infrastructure and public amenities. In addition, four small towns will also be developed on periphery of the reservoir for the affectees who would choose to resettle near to their original habitat. Similar efforts of consensus building would be made before undertaking any future dams that are planned for development of water resources. 19