According to the 9th Annual Report on the State of Economy: Agriculture and Water, launched on Monday, Pakistan has large but inefficient and poorly managed irrigation system. The Report prepared by Burki Institute of Public Policy Netsol (BIPP) Chairman Shahid Javed Burki states that the system looses about 60 percent of water during conveyance from canal head works to the farm gate.
Maintenance is inadequate, and no asset management plan is in place. A sustainable financing plan is not available either, and the system continues to rely on transfers from various levels of government. Pakistan's leading businessman and Philanthropist Syed Babar Al was the guest of honour during the report launching ceremony while it was presided over by the former minister for foreign affairs of Bangladesh and currently Director institute Of South Asian Studies Singapore Dr Iftikar Ahmed Chowdhury.
According to the report around 18 institutions have been created to manage and develop water resources. Because of which recent efforts to formulate water policy have largely failed as different institutions look at policy issues from their own vantage point. For example, there is hardly any connect between two critical institutions, the ministries in charge of agriculture and irrigation. Further, the use of ground water has reached a limit beyond which increases the quality and sustainability concerns. Improved regulations are much needed.
The Report also stated 'based on the developments in the sector and on the experience of various reforms, it is clear that enhancing water storage capacity, improving governance and management of water institutions and effective and rational use of water are the most critical areas for action.'
"Higher water charges to farmers could induce better water use practices. Most farmers can pay a lot more for water then they are charged. Currently, the average selling price of privately supplied tube well water is about Rs 300 per hour, for an installed capacity of one cubic foot per second. This charge is four times more than what a farmer, relying entirely on government supplied canal water, pays for the same volume." The Report said.
The Report pointed out that agriculture growth has clearly slowed down in the last decade. Output growth averaged only two percent per annum during 2006-16 and was negative in 2015-16. Excluding the last bad year, the overall rate of growth of value added in major crops over 2006-2015 was only 1.5 cent per annum. While major crops, have limped along at a slow rate, the value added in the other crops, which include fruit and vegetables and oilseeds, actually dropped slightly from 14.5 percent in 2005-2006 to 11 percent in 2015-2016. The report also points out that government policies only focuses on major crops especially wheat, and have not given sufficient support to higher value crops and the livestock sector.
The Report suggests innovative model for increasing agricultural productivity based on value chain and underscores the importance of access of farmers to finance, establishment of agriculture, capacity building of all the entities involved in agriculture and access to technology, and institution of a robust market information and intelligence system.
While discussing the potential of agriculture, the authors have stressed the importance of judicious and economic use of water for the enhancement of the sector. The Report called upon the policy makers in the country to focus on speeding up the pace of growth and social transformation. The ceremony was attended by vice chairman BIPP Shahid Najam, Chairman Shahid Javed Burki, Advisor BIPP Dr Mahmood Ahmad and Acting Director BIPP Asad Ejaz Butt.
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