Anjum Nisar for provincial ownership of dams, Rs1,000bn federal fund for water projects
ISLAMABAD, DEC 14 /DNA/ – The Federation of Pakistan Chambers of Commerce and Industry’s Businessmen Panel has urged the National Finance Commission to reconsider the current resource distribution mechanism, proposing that the federal government retain at least Rs1,000 billion for national water infrastructure while calling on provinces to fulfil their constitutional responsibility in agriculture by investing in dam construction.
FPCCI former president and BMP Chairman Mian Anjum Nisar said floods and water shortages directly damage provincial land and crops, making it imperative for provinces to address the issue within their own domain rather than relying solely on the cash-strapped centre.
Mian Anjum Nisar said that under the Constitution and the NFC Award framework, agriculture is clearly a provincial subject, and therefore planning, investment and execution related to agricultural protection, irrigation and water management logically fall within the responsibility of provincial governments. He pointed out that floods primarily affect provincial territories, destroying standing crops, eroding fertile land and damaging rural infrastructure, yet little progress has been made in building adequate storage and flood-control mechanisms at the provincial level.
He explained that the impact of floods does not end with immediate destruction. Once floodwaters recede, prolonged water shortages emerge, further harming crops and reducing yields. This cycle, he said, has become a recurring pattern in Pakistan, inflicting heavy losses on farmers and weakening the overall agricultural base of the economy. According to him, dams are the only sustainable solution that can simultaneously control floods, store surplus water and ensure consistent irrigation during dry periods.
The BMP chairman noted that provinces are now financially stronger due to their enhanced share in the divisible pool under successive NFC Awards, while the federal government is struggling with limited fiscal space, rising debt obligations and mounting expenditure pressures. In this situation, he said it is unrealistic and unfair to expect the centre alone to finance large-scale dam projects when provinces have both the constitutional mandate and substantial financial resources at their disposal.
He stressed that upcoming NFC Award meetings must take a more pragmatic and forward-looking approach by recognising water scarcity and flood management as national priorities. As part of this, Mian Anjum Nisar proposed that the federal government should be allowed to retain at least Rs1,000 to Rs1,200 billion from the divisible pool specifically earmarked for water reservoirs, dams and related infrastructure. He said this arrangement would not undermine provincial autonomy but would instead strengthen national resilience against climate-related risks.
According to him, retaining funds at the federal level for strategic water projects is essential because water security has implications far beyond provincial boundaries. Rivers flow across provinces, floods affect downstream regions and water shortages disrupt national food supplies. He argued that a coordinated national approach, supported by adequate federal funding and provincial participation, is the only way to deal effectively with these interconnected challenges.
Mian Anjum Nisar said that properly planned dams in barren and underutilised areas could convert vast stretches of land into productive agricultural zones. This would not only increase crop output but also improve food security, reduce dependence on imports and create new employment opportunities in rural areas. He added that increased agricultural productivity would help stabilise food prices, which remain a major contributor to inflation in Pakistan.
He further highlighted the link between water availability and energy costs, noting that stored water can be used to generate low-cost hydropower. Cheaper electricity, he said, would significantly reduce the cost of production for industry, improve competitiveness and ease pressure on businesses already struggling with high energy tariffs. Lower production costs would ultimately benefit consumers through reduced prices and help contain inflationary pressures in the economy.
The BMP chairman observed that the business community views water management as a critical economic issue rather than merely an environmental or agricultural concern. He said unreliable water supply disrupts supply chains, discourages investment and undermines long-term planning for both agriculture and industry. Ensuring predictable water availability through dams would create a more stable economic environment and encourage domestic as well as foreign investment.
Mian Anjum Nisar criticised decades of delayed decision-making on major dam projects, attributing the slow progress to political disagreements, lack of consensus and short-term policy thinking. He warned that climate change is intensifying the frequency and severity of floods while simultaneously reducing the reliability of traditional water flows, making inaction far more costly than decisive investment today.
He called for stronger coordination between the federal and provincial governments, stressing that while provinces should take ownership of projects within their jurisdictions, the centre must provide leadership, technical expertise and financial support where necessary. He said transparent planning, clear timelines and accountability mechanisms are essential to ensure that funds allocated for dams and water infrastructure are used effectively.
