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Water pricing and financial aspects of irrigation - Issues and Options.
Author(s):
1. Munir Ahmed Bhatti: Pakistan Council Research Water Resources, Islamabad, Pakistan
Abstract:
In Pakistan, Water sector has to compete with other sectors for its development and operation like in any other developing country of the world. A mechanism was devised to share the cost of the irrigation systems by the Government early this century in which the Government was to develop the system and the users were to bear the operational expenditures namely water rates. Water rates are levied on cropped acreage basis and recovered on the basis of crop area actually matured. These rates do not take into account the value of water which is different from the cost of water Revenue in terms of water rates is the government's only income against all expenditure incurred by the Federal and Provincial agencies on irrigation system. For the decade 1981- 1990, the average annual income from water rates has been Rs. 1093. 7235 million, while the average annual expenditure on the irrigation system was Rs. 3604. 1 million. Deficit between the income and the expenditure of the irrigation system is rising every year, i. e. Rs. 1560 million in 1985-86 to Rs. 4013 million in 1990. The concept that "every unit be self-sustainable" is quite valid and can be realized either by total privatization or by reforming the system by structural and non-structural adjustments. Privatization of water distribution network and development of system of pricing can be advocated to make the system efficient only if it is practical in our socio-political system and the government has necessary infrastructure to implement it. The existing system can also be reformed by giving more autonomy to irrigation circles or other smaller units. Let them collect the revenues and use them. The decentralization of tax and revenue system to the lowest level of irrigation system which is watercourse command, can facilitate progress towards the required direction rapidly. The structure of water rate may comprise of (I) facility cost @ Rs. 25 per acre, on canal command irrespective of its use (2) dealing cost charged on volume or share in show @ Rs. 120 per acre and (3) Development/Improvement charges @ Rs. 120 per acre. An other option is that Federal Govt. can share the cost of tubewells for water logging and salinity, flood Control and drainage, and the rest be charged to the water users or at least a portion of it be charged from the direct beneficiaries.
Page(s): 95-107
DOI: DOI not available
Published: Journal: Pakistan Journal of Water Resources, Volume: 1, Issue: 1, Year: 1995
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