pakistan’s political economy exacerbates water crisis


Published on: December 3, 2023.

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Introduction

Pakistan is facing a water crisis that poses a long-term challenge to the country’s stability and development. Unequal access to clean water is deepening socioeconomic disparities and has the potential to spark civil unrest. Aging infrastructure, weak water governance, and climate shocks are exacerbating the problem. However, the current moment presents an opportunity for Pakistan to address these challenges through policy changes and greater accountability.

Pakistan’s Water Crisis

Despite having enough water to meet its population’s needs, millions of Pakistanis lack access to clean water. Insufficient supply of clean water contributes to 40 percent of all excess deaths in the country. Less than 40 percent of households in Karachi have access to piped water, while drought conditions in rural areas lead to rural-urban migration. Pakistan’s water crisis is not due to water scarcity but rather issues of equity, access, and intersectoral distribution.

Agriculture and the Water Crisis

Pakistan devotes a significant amount of its water supply, almost three-quarters, to water-intensive crops like wheat, rice, sugar cane, and cotton. Existing policies encourage the cultivation of these crops without pricing water into their production costs. This leads to disproportionate water usage in the agricultural sector compared to other sectors. Reforms in the agricultural sector, particularly in the cash-crop sector, can help alleviate water stress.

Toward Agricultural Reform

Policy reforms should target the cash-crop sector, specifically sugar and cotton, which collectively consume almost a third of Pakistan’s water resources. While sugar presents challenges due to the political influence of sugar barons, reforms in the cotton sector can be a starting point for export diversification. Pakistan’s reliance on water-intensive cotton exports has made it the largest exporter of virtual groundwater in the world. Price water into the cost of agricultural production to create disincentives for water-intensive crops like cotton and sugar, while promoting alternative high-value export sectors.

Navigating Challenges

Agricultural reforms should be implemented through a phased approach, taking into account the impact on foreign exchange reserves, national food security, elite interests, and farmers’ livelihoods. Pakistan should focus on increasing exports of high-value goods, services, and information technology while reducing dependence on low-value cotton products. Differentiating between essential and nonessential water-intensive crops is important to ensure food security is not compromised. Support vulnerable subsistence farmers through cash transfers, land grants, and training programs to transition to less water-intensive crops.

Looking Ahead

Pakistan’s international partners can incentivize agricultural reforms and water-conscious practices through investments in more sustainable agricultural practices. International financial institutions should consider the environmental impact of their policies, particularly those promoting water-intensive exports. The reallocation of IMF Special Drawing Rights (SDRs) presents an opportunity for positive change. SDRs can be allocated based on countries’ progress in achieving water-related Sustainable Development Goals, promoting essential policy changes and water-conscious practices.

Conclusion

Pakistan’s water crisis is a pressing issue that requires immediate attention and policy changes. By prioritizing the public’s access to clean water and implementing agricultural reforms, Pakistan can mitigate the effects of water scarcity and contribute to its long-term stability and development.

Source: [Stimson](https://www.stimson.org)