KARACHI – The Asian Development Bank (ADB) would provide a loan of at least $ 400 million for improvement in Sindh’s irrigation system, Pakistan Today has reliably learnt.
The ADB Mission and the Sindh authorities had reached a consensus on the heavy interest loan, while the first installment of $130 million of the loan would be provided very shortly. The bank’s loan would be utilised for reforms in the decades-old irrigation system of the province under Sindh Water Resources Development and Management Investment Programme. Besides, the loan would also bring administrative reforms in the Sindh’s irrigation department.
The loan carries a heavy interest rate as Sindh would pay at least Rs 2.5 to Rs 3.0 billion annually on account of interest, well-placed sources in Sindh’s irrigation department told Pakistan Today.
Earlier, in August 2009, the bank’s consultant had prepared a report on Sindh’s irrigation system and pointed out that the influential landlords were involved in water-theft, who had withdrawn huge quantities of irrigation water than the actual allocation.
The report also pointed out that the Sindh government had failed to ensure proper implementation of laws to contain theft of irrigation water by the influential districts of the province, depriving growers of water from the tail-end areas. Besides, the bank had also demanded Sindh to disclose the names of those influential involved in water theft, the sources said. Interestingly, the irrigation department had also forwarded its reply on the ADB consultant’s report, saying that there was no water theft in any district the province. Sindh had also agreed that the system of agricultural tax recovery would be made more effective. The agricultural tax collection, which is currently being done by the Revenue Department, would be transferred to the irrigation department and the funds collected would only be utilised for the improvement of the irrigation system.
In addition, Sindh had also agreed with the bank’s wish that powers to take against the violators of irrigation laws would be taken back from the police and be given to the irrigation staff to make the law more effective and strict action could be taken against the violators. Recently, in yet another letter forwarded by the ADB Few months back, in yet another letter, the ADB had agreed with the Sindh’s point of view of no theft of irrigation water by the influential people. According to finance department’s officials, the Sindh would have to pay at least Rs 2.5 to Rs 3.0 billion annually as loan interest.
