Pakistan is planning to build a new Chenab Dam to help manage its growing water problems and respond to India’s actions under the Indus Waters Treaty (IWT). This big project, together with the revised Diamer-Bhasha Dam, will cost the country more than Rs800 billion.
To cover these huge costs, the government wanted to keep all money collected from a special water storage cess with the federal government and not share it with the provinces. This idea was meant to make sure there would be enough funds to complete the dam without delays.
The goal of the new Chenab Dam is to secure Pakistan’s water needs for farming, drinking, and power generation. Many experts believe this project is important because Pakistan has been facing water shortages for years, and tensions with India over river water have made the situation worse.
However, Pakistan’s plan to collect funds through a 1% water storage cess on goods did not get approval from the International Monetary Fund (IMF). The IMF rejected the proposal and suggested that Pakistan should increase the general sales tax instead if it wants to raise more money for the dam projects.
This has put extra pressure on the government to find new ways to arrange money for such massive projects while managing other economic challenges.
As Pakistan looks for solutions, many people hope that the new dams will help secure water for future generations. Finding the right way to fund and build them has become one of the country’s biggest tasks right now.
