Daily Times

KARACHI: In a bid to overcome water challenges, the State Bank of Pakistan (SBP) suggested the government to increase water rates and install metering devices to regulate the quantity consumed.

The central bank said that within the pricing structure, focus needed to be on raising ‘abiana’ rates within agriculture and tariffs within domestic and industrial sector to bring them at par with the cost required to operate and maintain the water supply system. Besides, it would help in encouraging a more rational use of water, the bank said. Within the domestic and industrial sectors, proper provision of water connections to households and industrial units, along with metering devices, was also crucial to regulate the quantity consumed and charge rates accordingly, the bank said. This would also regulate the use of water and reduce issues of equity between households, it added.

“At the same time, regulatory policies are needed to ensure sustainability of underground aquifers. Developing supply infrastructure through metering and ensuring connections so as to charge volumetric pricing: Urgent lining, repair and maintenance of canals are required to minimize the most extensive source of water losses in the system”, the SBP said. The central bank said there was a need to charge volumetric pricing, which is to charge each crop and area as per the unit of water consumed. This would be possible through separating charge of water from the land area and connecting it to the quantity of water consumed.

The Central Bank, in its annual report for fiscal year 2016-17 (FY17), said Pakistan was still awaiting its first national water policy despite the fact its draft was formulated in 2003. The task of structuring a policy became more complicated after the 18th amendment when water distribution for agriculture, domestic and industrial purposes became a provincial subject.

Accordingly, the draft water policy was awaiting approval from the Council of Common Interests. In comparison, neighbouring countries such as India, Bangladesh, Nepal and Sri Lanka all had water policies in place for more than a decade, which defined the goals regarding water conservation, storage and distribution at the federal and other levels, the bank added.

“The delay in announcing this policy is a major setback as the current policies are inadequate in addressing the upcoming water challenges. Further delays would only damage the long-term growth prospects of the economy. Any policy on water should focus on measures to augment supplies and manage demand”, the SBP stressed.

A system of water rights should be introduced which allowed for trading of water rights, the bank added.

Focus on proper disposal of household, industrial and agriculture waste was crucial to ensure adequate quality of water. Penalties and fines shall be imposed for non-compliance. Since water is a sensitive issue in the country, there was a need to focus on raising awareness about the importance of conservation, the SBP concluded.

Published in Daily Times, October 15^th 2017.