Pakistan’s GB bans construction of new hotels around lakes, earning praise from environmentalists, residents

The picture posted by Najeeb Ullah Khan in 2024 on Google Images shows hotels built around Attabad lake in Gilgit-Baltistan. (Najeeb Ullah Khan)
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Updated 20 July 2025
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Pakistan’s GB bans construction of new hotels around lakes, earning praise from environmentalists, residents

  • Building new hotels around lakes banned for five years to discourage unregulated constructions, protect natural environment, says official
  • Environmentalists stress importance of protecting lakes, noting several in region serve as source of drinking water for Gilgit-Baltistan residents 

KHAPLU, Gilgit-Baltistan: Environmental experts, residents and activists have praised the government’s move this week to ban the construction of new hotels around lakes in Pakistan’s northern Gilgit-Baltistan (GB) region for five years, noting it would help protect the area’s natural sites. 

Pakistan’s mountainous GB region is home to over 13,000 glaciers, more than any other country apart from the polar regions, as well as picturesque lakes, orchards and mountains. As per the GB Tourism Department, over one million tourists visited the area in 2024. 

The rise of tourism in the area has led to the construction of new hotels, which have sparked concerns of increasing pollution, waste, lack of regulation and straining of water and power resources in the area. 

A video by foreign vlogger George Buckley in June, showing allegedly untreated sewage being discharged into the region’s picturesque Attabad Lake, went viral on social media. It prompted calls for thorough checks and inspections of hotels in the area. 
 
“Gilgit-Baltistan is becoming a forest of concrete due to the influx of tourism,” Syed Asrar ul Hasnain, an official of GB’s Environmental Protection Authority (EPA), told Arab News over the phone.

“The region was going toward an unregulated type of development. Due to this situation, our department sent a recommendation to the government to ban the issuing of NOCs [no objection certificates] for the new construction of hotels,” he added. 

Hasnain vowed that authorities would ensure that hotels that were already functional in the region would also be monitored. 

“The main objective behind the ban is the protection of natural beauties and the environment,” he said. “And initially, the ban is for five years.”

Kamal Khan, commissioner for the Baltistan region, said the construction of new hotels near lakes and “environmentally sensitive regions” in all four districts of the Baltistan region has been banned as well. 

He stressed that sewerage treatment plants (STPs) should be part of hotels constructed near water bodies.

“[Unfortunately], the operational hotels don’t have STPs in the region,” Khan said. “And after filling the pits, the sewage water is mixed in the water body, and it is hazardous for human life and health.”

Noting that GB has a “fragile environment,” Khan vowed to protect it through such measures.

“We have directed all existing and functional hotels to make STPs in their hotel, if the hotels have a high number of rooms,” the commissioner said. “If they do not implement our order, we will seal the hotels.”

’GOOD OMEN’ 

Dr. Salaar Ali, head of the Department of Environmental Science at the University of Baltistan, appreciated the government’s move, saying it would help protect the natural environment. 

“The lakes are not only a tourist destination, but many like Sadpara Lakes are a source of drinking water for the residents,” Dr. Ali told Arab News.

“And the protection of these lakes and areas should be our priority.”

He also called on authorities to ban the use of motorboats in the region, saying they were responsible for littering in freshwater bodies.

Kiran Qasim, a resident of Gilgit and a journalist, described the ban as a “very effective” measure, saying it would also help mitigate the effects of climate change. 

“The construction around natural lakes also disturbs plants, birds and fish, etcetera,” she explained. “Instead of imposing a ban for only five years, the ban should be for a long period.”

Zahoor Ilahi, a social activist from Hunza Valley, said authorities should promote environmentally friendly constructions such as huts.

“On the other side, multi-story buildings are dangerous for our environment,” he said. “And there should be no exception for big investors. Laws should be implemented equally.”

Manzoor Hussain, the president of the Hotel Association of Hunza, described the ban as a “good omen” but echoed the same concern. 

“We second this move, but there should be no difference between the rich and the poor,” Hussain said, calling on authorities to seal hotels that don’t meet environmental standards.

“The laws should be implemented to protect the environment, in a real manner, not just to get fame on social media,” Hussain said. 


Pakistan disburses record $9.2 billion agricultural loans in FY25, central bank says

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Pakistan disburses record $9.2 billion agricultural loans in FY25, central bank says

  • State Bank says farm lending rose 16 percent year-on-year to Rs2.58 trillion
  • Inflation eased to 5.8 percent in January as GDP growth hits 3.7 percent in Q1 FY26

KARACHI: Pakistan disbursed a record Rs2.58 trillion ($9.2 billion) in agricultural loans during fiscal year 2024–25, a 16 percent increase from the previous year, State Bank of Pakistan (SBP) Governor Jameel Ahmad said on Thursday while chairing a meeting of the Agricultural Credit Advisory Committee (ACAC).

Agricultural financing is considered critical to Pakistan’s rural economy, where farming contributes nearly one-fifth of GDP and employs a large share of the workforce. The government has repeatedly emphasized expanding credit access to small farmers as part of broader efforts to boost productivity, stabilize food supply and support economic recovery under an IMF-backed reform program.

According to official data shared at the meeting, agricultural credit disbursement reached Rs2.58 trillion in FY25, marking a record high. In the first half of FY26 alone, banks disbursed Rs1,412 billion in agricultural loans, while the number of borrowers increased to 2.97 million.

“During fiscal year 2025, record agricultural loans of Rs2.58 trillion were disbursed, reflecting an annual growth of 16 percent,” the State Bank governor said, according to a statement issued after the meeting.

He added that Pakistan had regained macroeconomic stability and that the economy was moving toward sustainable growth.

The governor said GDP growth in the first quarter of FY26 stood at 3.7 percent, while full-year growth was projected between 3.75 percent and 4.75 percent.

He also noted that headline inflation had declined to 5.8 percent in January 2026.

The committee reviewed measures to further expand credit access, including greater use of the central bank’s Zarkhez-e scheme to facilitate agricultural lending. Members also discussed promoting electronic warehouse receipt financing to enhance post-harvest liquidity and reduce distress sales of crops.

The statement said the purpose of electronic warehouse receipt financing was to “reduce forced sales of crops and strengthen linkages within the agricultural market.”

Agricultural lending has been a focus of Pakistan’s financial inclusion strategy, particularly as policymakers seek to improve rural incomes, stabilize food prices and strengthen export-oriented crop production amid broader economic reforms.