PAKISTAN STUDIES

RIMSHA SHAKOOR (FA19-BSE-007)

 Project
Current Social, Economic and Political Challenges related to Industrial Sector of
Pakistan since partition.

Abstract
Since the time of partition Pakistan has faced many problems as an emerging
nation which can be comprised as political social and economic. In review of this
this report is mainly highlighted to indicate the agriculture sector with respect to
water scarcity. So, the report has been compiled y keeping all the facts and
figures.

_________________________

To
The Municipal Committee,

ABC department,

City: A.B.C.

From

A chief executive news reporter,

ABC district,

Islamabad.

Subject: Agriculture with respect to water scarcity

Respected Sir,

In response to current challenges faced by Pakistan, I have been

assigned to compile report and represent to you about one of biggest challenge
our country is facing nowadays in terms of social political and economic as
affecting our industrial sector too in this regard.

Introduction
Pakistan, one of the world’s most arid countries, with an average rainfall of under
240 mm a year into the Indus River system. About 180 billion cubic meters2 of
water of the system emanates from the neighboring country and is mostly
derived from snow-melt in the Himalayas. Still that’s not enough to overcome the
problem of water scarcity in agriculture sector of Pakistan.

Purpose:
This report will give an overview of the reasons of having downfall of our
economy due to agriculture sector in our country and how this has endangered
our economy in terms of currency and all that. Also, some strategies have been
given in order to overcome this problem.
 Background:
This hydraulic economy of Pakistan faced massive challenges right from the
independence of country in 1947. The first challenge arose at the time of partition
of the Indo-Pak subcontinent which detached the irrigated heartland of Punjab
from the life-giving waters of the Ravi, Sutlej and Bieas which have now become
the part of India.

The situation became worst when India stopped the water flow of Pakistan in
April 1948. Then, water diplomacy started and both states under the mediation of
the World Bank negotiated the Indus Waters Treaty (IWT) in 1960, giving Pakistan
rights in perpetuity to the waters of the three western rivers; Indus, Jhelum, and
Chenab rivers. While the three eastern rivers Beas, Sutlej and Ravi came under
total control of India.

Discussion
After the partition in 1947, Pakistan was created in watershed when East Pakistan
split off to become a Bangladesh and thus it gives rise to a threat in industrial
sector.

Settlement of the issue:

Water issues between Pakistan and India were settled through Indus Water
Treaty often regarded as a remarkable example of conflict resolution. But the
recent Indian intentions of building “chain of dams” on Pakistani western rivers
have once again posed a serious challenge for Pakistan.

Further, UN reports are suggesting that Pakistan is going to become a water

scarce country in near future. Forgoing in view, this essay highlights the reasons
of water shortage in Pakistan, its implications and a proposed way out.
Following are the major issues linked with agriculture:

Irrigation:
A huge amount of water is lost due to seepage and evaporation. Moreover, due to
problem of distribution of water in fields, farmers do not practice the standard
water required in fields. Thus, this leads to mismanagement of water.

Salinity and water logging:

Due to excessive use of canal water, most of cultivated lands have become
victims of these two dangerous diseases. Every year, salinity alone is turning
about 100,000 acres of arable land into marches and salt lands. Water-logging is
no less injurious. About 25% of the irrigated area of Pakistan is affected by water
logging and salinity problems

Absence of land reforms:

During Ayyub’s era, first time land reforms was practiced. Mr. Zulfiqar Ali Bhutto
introduced more reforms in 1972. The Law Reforms Act 1977 was also enforced
by Bhutto’s regime. The most important change was that individual holdings,
including shares in shamilat, if any, in excess of 100 acres of irrigated land or 200
acres of un-irrigated land. Thus, absence of it has a huge impact.

Lack of Accountability:
The marketing facilities for agricultural products in Pakistan are still far from
satisfactory level. Our cultivators cannot get just prices for their produce due to
defective marketing organization. Moreover, the chain of middlemen between
the producers and ultimate consumers take a heavy share of their produce. Thus,
the cultivators do not take much real interest in increasing their product too

Deforestation:
Less than 4% of land in Pakistan is forested and rate of deforestation is around 3%
which is the result of unplanned urbanization.
 Policy Support:
During the 70’s, the country faced heavy nationalization including in the ten hi-
tech basic industries - steel, fertilizer, engineering to name a few, which are now
being advised to be phased out for being internationally uncompetitive. Be it as it
may, Pakistan always imports more than it exports.

The gap has been filled by loans and credits. Cumulative loan amount was $38
billion, a couple of years ago, which made up a staggering 66 per cent of
Pakistan’s GDP. This has now been reduced to $30 billion, or about 50 per cent of
the GDP, still a sizable debt burden.

Impact on Manufacturing Sector:

The manufacturing sector is one of the two legs on which the commodity
producing edifice of the economy stands. Beginning in the 1970s, a large state
enterprise sector emerged, with several enterprises suffering from problems of
inefficiency and unprofitability. This caused a drain on the federal budget, and led
to acceptance of the imperative for reform
With the losses of KESC from the point it has generated to the point they realize
the billing is 45%, so 55% people are paying for those who are stealing the
electricity. Government of Pakistan out of its own limited resources is paying 200
billion rupees every year as subsidies for electricity.
Our industry is at a disadvantage that they get the orders from foreign countries
but they cannot execute the orders because there are electricity outages. In
addition to economic losses it also creates inconvenience for pursuing normal life.
We have silting of our dams, but no additional dams have been constructed since
Tarbela in 1974. We have water course losses of about 20-25%.

Obstacles to Labor Force:

Even after these losses, the water is inequitably distributed. The influential land
lords are able to take greater share of water from the canals as compared to poor
farmers. Therefore, the productivity of poor farmer is only one ton per acre as
compared to 3 tons by large holders.
If we provide the water equitably to the small farmer, he would also be able to
increase the productivity from one to at least two tons resulting into additional
income, increase in exports of food grains, cotton and fruits and vegetables which
will add to export earnings of Pakistan. With the climate change taking place with
all the glaciers in Himalayas which are going to melt, we are going to have
difficulties in future due to global warming.
Recommendations
1. Lack of educational and institutional means and equipment.
2. Water issue with the serious problems of proper dams’ construction in the
country.
3. Government must unveil a solid industrial policy keeping in view
the global requirements
4. In order to increase the share of the industrial sector in the GDP there is
dire need to establish new industrial estate in the country
5. To enhance the contribution of existing industrial estates in the economy

they should be facilitated by the government policies

6. The crisis of energy must be resolved on priority basis and interrupted
supply of energy to industry be ensured
7. Law and order situation be improved to allure the investors to invest their
money and time
8. New technical universities and institutions be established for the guidance
of the labor and equip them with the modern techniques being used in the
industry
9. More attentions should be given to increase export
10. Import substitution products are produced to encourage people to use
local products
11. Realistic and up-to-date statistics is provided to this sector
References
Ansari, H.S. (2009), “User Needs Profile of Executive Education on Governance
in Pakistan”, Islamabad.
 Asghar, U.M. (2013), “Governance Issues in Pakistan” Retrieved from
http://ndu.edu.pk/issra/issra_pub/articles/issrapaper/ISSRA_Papers_Vol5_IssueI_
2013/06-
Governance-Issues-Mr-Usman-Asghar.pdf