ISLAMABAD: Prime Minister Shehbaz Sharif announced on Thursday that the federal government will pause constructing new canals on River Indus until a consensus develops between Pakistan’s provinces on the matter, following outrage and sit-in protests in Sindh.
Pakistan’s government launched an ambitious agricultural project in February to build a network of six canals on River Indus. The government says it aims to irrigate millions of acres of barren lands and ensure food security for the 240-million strong country.
However, critics say the project would trigger water shortages in the southern parts of the country, especially Sindh. Lawyers, members of the civil society and supporters of nationalist parties in Sindh have disrupted trade and traffic on the province’s National Highway since last Friday, staging sit-in protests over the issue.
Pakistan Peoples Party (PPP), a key ally of the ruling coalition led by Sharif and the largest party in Sindh, has led protests against the project. PPP Chairman Bilawal Bhutto Zardari met Sharif on Thursday to discuss the canals issue and Pakistan’s prevailing tensions with India.
“We must resolve this issue through mutual consent and dialogue,” Sharif said with Bhutto Zardari by his side. “And today, in the meeting held between the Pakistan Peoples Party and the Pakistan Muslim League (Nawaz), we have mutually agreed that no new canals will be constructed until a decision is reached via consensus in the Council of Common Interests (CCI).”
The CCI is a constitutional body whose members are appointed by the president on the advice of the prime minister. The council resolves power-sharing and other disputes between the federation and the provinces.
Sharif said the center had decided that there will be “no further progress” on canal-related matters unless a consensus is developed among provinces.
“Therefore, we have decided today that a meeting of the Council of Common Interests will be convened on Friday, May 2, in which the Pakistan Peoples Party and the Pakistan Muslim League-Nawaz, and the federal government’s decisions will be endorsed,” he added.
Bhutto Zardari thanked the prime minister for listening to his concerns regarding the issue, saying that the CCI meeting will endorse the decision that no new canals would be constructed without consensus on the matter.
“Today, we are not taking a decision together but are merely agreeing that without consensus on water-related matters, no new canals are being made,” he said.
The PPP last week threatened to withdraw its support for Sharif’s ruling coalition government if it decided to go ahead with building the new canals. Bhutto Zardari’s party, which emerged as the second-largest political party after the controversial 2024 general election in Pakistan, Sharif get elected prime minister last year.
The PPP settled for the presidency and governorships in Punjab and Khyber Pakhtunkhwa (KP) provinces, areas where it performed poorly in the national polls.
Pakistan pauses controversial canals project amid protests in Sindh
https://arab.news/4d8rf
Pakistan pauses controversial canals project amid protests in Sindh
- Nationalist parties, civil society members in fear project to build canals on River Indus will trigger water shortages
- Shehbaz Sharif says there will be no further progress on canals until all provinces reach a consensus over the matter
Pakistan, ADB sign $730 loan agreements to boost SOE reforms, energy infrastructure
- Both sign $330 million Power Transmission Strengthening Project and $400 million SOE Transformation Program loan agreements
- Economic Affairs Division official says Transmission Project will secure Pakistan’s energy future by strengthening national grid’s backbone
KARACHI: Pakistan and the Asian Development Bank (ADB) on Thursday signed two loan agreements totaling $730 million to boost reforms in state-owned enterprises (SOEs) and energy infrastructure in the country, the bank said.
The first of the two agreements pertains to the SOE Transformation Program worth $400 million while the second loan, worth $330 million, is for a Power Transmission Strengthening Project, the lender said.
The agreements were signed by ADB Country Director for Pakistan Emma Fan and Pakistan’s Secretary of Economic Affairs Division Humair Karim.
“The agreements demonstrate ADB’s enduring commitment to supporting sustainable and inclusive economic growth in Pakistan,” the ADB said.
Pakistan’s SOEs have incurred losses worth billions of dollars over the years due to financial mismanagement and corruption. These entities, including the country’s national airline Pakistan International Airlines, which was sold to a private group this week, have relied on subsequent government bailouts over the years to operate.
The ADB approved the $400 million loan for SOE reforms on Dec. 12. It said the program seeks to improve governance and optimize the performance of Pakistan’s commercial SOEs.
Karim highlighted that the Power Transmission Strengthening Project will enable reliable evacuation of 2,300 MW from Pakistan’s upcoming hydropower projects, relieve overloading of existing transmission lines and enhance resilience under contingency conditions, the Press Information Department (PID) said.
“The Secretary emphasized that both initiatives are transformative in nature as the Transmission Project will secure Pakistan’s energy future by strengthening the backbone of the national grid whereas the SOE Program will enhance transparency, efficiency and sustainability of state-owned enterprises nationwide,” the PID said.
The ADB has supported reforms by Pakistan to strengthen its public finance and social protection systems. It has also undertaken programs in the country to help with post-flood reconstruction, improve food security and social and human capital.
To date, ADB says it has committed 764 public sector loans, grants and technical assistance totaling $43.4 billion to Pakistan.
