Water shortages in dams hit Pakistan’s electricity generation, threaten major crops 

Pakistani residents inspect a three wheeler water bike standing over a dry portion of the Rawal dam in Islamabad on June 19, 2018. (AFP)
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Updated 29 June 2021
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Water shortages in dams hit Pakistan’s electricity generation, threaten major crops 

  • Country left with 8-10 days of water in dams due to decreased inflows from north where low temperatures have slowed melting of snow and glaciers
  • WAPDA says country’s hydropower generation has plummeted to around 2,500 megawatts due to reduction in water level in reservoirs 

ISLAMABAD: Acute water shortages in Pakistani reservoirs have hit electricity generation in the country and at least three major crops including rice, cotton and sugarcane, officials said on Monday as the federal government reduced around ten percent water supply to the provinces.

Pakistan has two major water reservoirs, the Mangla and Tarbela dams, on the Jhelum and Indus rivers which are about to hit “dead level” due to reduced water inflows from the northern areas where low temperatures are resulting in the slow melting of snow and glaciers. 

The temperature in the country’s northern regions is usually above 25 degrees Celsius during this time of the year, but currently stands at around 15 degrees Celsius due to thick clouds. 

Pakistan’s river flows are heavily dependent on glacial melt (41 percent), snowmelt (22 percent) and rainfall (27 percent).

“We are left with only eight to ten days of water in our dams, and if the temperature doesn’t improve in northern areas, especially Skardu, a crisis-like situation may emerge in a couple of weeks,” Mohammed Khalid Idrees Rana, director of operations at the Indus River System Authority, told Arab News on Monday.

“We have reduced the water supply from five to ten percent to provinces from today, and if the water inflow doesn’t improve in a week, this will be reduced further,” Rana said, adding that water shortages are bound to hit rice, sugarcane, cotton crops and orchards “severely.”

The South Asian nation generates cheap hydropower of around 7,320 megawatts through water stored in its reservoirs.

Muhammad Abid Rana, an additional director-general at the Pakistan Water and Power Development Authority, told Arab News the country’s hydropower generation had reduced up to 2,500 megawatts in recent days due to water shortages in Tarbela dam. 

“We have to close down seven electricity generation units at Tarbela dam,” he said. “If the water level doesn’t improve in the coming days, hydropower generation will further reduce.” 

Pakistan is home to 7,253 glaciers, with more glacial ice than any other country on earth outside the polar regions. 

But climate change is “eating away Himalayan glaciers at a dramatic rate,” a study published last year in the journal Science Advances said. As glacier ice melts, it can collect in large glacial lakes, which are at risk of bursting through their banks and creating deadly flash floods downstream. More than 3,000 of those lakes had formed as of 2018, with 33 of them considered hazardous and more than 7 million people at risk downstream, according to the UN Development Program. 

Now, lower temperatures have added a new dimension to the problem of flooding. 

“If we receive committed rainfall in monsoon, we can fill up our dams and provide due share of water to provinces for crops,” Rana from the Indus River System Authority said. 

Pakistan’s water storage capacity is now only enough for 33 days which, experts say, should be increased to at least 100 days to ensure much-needed water supplies for agriculture, industry and other purposes. 

The Indus system receives an annual influx of 134.8 million acre-feet of water, while Pakistan receives snowfall only in the northern areas during winter. 
 


Pakistan’s Engro executes $475 million Islamic financing deal to expand telecom infrastructure

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Pakistan’s Engro executes $475 million Islamic financing deal to expand telecom infrastructure

  • Islamic banking accounts for over a fifth of Pakistan’s banking assets amid a shift toward Shariah-compliant finance
  • The deal brings more than 10,000 telecom towers under Engro’s control, enabling their shared use by multiple operators

KARACHI: Pakistan’s largest conglomerate Engro Corp. has completed a Rs133 billion ($475 million) Islamic financing deal to acquire telecom tower company Deodar, expanding its telecom infrastructure business as the country seeks to strengthen digital connectivity, the company said on Friday.

The transaction, structured entirely through Shariah-compliant financing, brings more than 10,000 telecom towers under Engro’s control and marks one of the largest Islamic financing deals in Pakistan’s infrastructure sector.

Engro, which has major interests in energy, fertilizers, food and petrochemicals, said the acquisition would allow it to scale shared telecom infrastructure, under which a single tower can host multiple mobile network operators, lowering costs and reducing duplication as Pakistan prepares for next-generation digital services.

“My congratulations to the Dawood family and Engro, the Islamic bankers and conventional banks through their Islamic windows on being able to put together a deal of this size,” State Bank of Pakistan Governor Jameel Ahmed said at a ceremony marking the transaction, referring to the company and its chairman. “This is a great achievement which has been supported by the banks.”

The deal was supported by a group of local banks, including United Bank Limited and Meezan Bank, Engro said, highlighting the increasing role of Islamic financing in funding long-term investment in Pakistan.

Islamic banking, which operates without interest and is based on profit-and-loss sharing structures, accounts for more than a fifth of Pakistan’s banking assets, and authorities have said they aim to transition the financial system toward Shariah compliance over the coming years.

The acquisition of Deodar, which was originally carved out of mobile operator Jazz, also aligns with government efforts to digitize the economy by expanding broadband access and supporting digital payments, e-commerce and online public services, though progress has remained uneven due to infrastructure and regulatory challenges.