Another dispute

India’s objection on Diamir Bhasha dam

At a time when moves are afoot to resolve the outstanding disputes between India and Pakistan, New Delhi’s objection to the construction of Diamir Bhasha dam comes as an unexpected shock. Pakistan badly needs to build Diamir Bhasha dam. What is at stake is the country’s economy and the livelihood of its masses. The dam partly inside Galgit-Baltistan and partly inside Khyber Pakhtunkhwa is to serve four vital functions: produce 4,500 megawatts of electricity, store an extra 8,500,000 acre feet of water for irrigation and drinking, extend the life of Tarbela dam located downstream by 35 years and control flood damage by the River Indus downstream during high floods. Pakistan had already spent millions of dollars on feasibility reports, detailed drawings and initial work before laying its foundation stone last year. It won’t promote friendly feelings in Pakistan if the project is stalled on account of objections from India.

A report tells of the World Bank being hesitant to provide funds for the project on an objection from India regarding the area being under dispute between the countries. This was unexpected as Pakistan had never raised the objection as India constructed dams in the areas of Kashmir under its control. India was able to finance the projects with its own funds partly because they were smaller. The estimated cost of Diamir Bhasha dam in 2011 being US $11.19 billion, Pakistan is forced to seek loans from the World Bank and the ADB. The policies of the two banks require that any project in a disputed territory should have no objection from the concerned parties.

The objection by New Delhi negates the claims by the Indian leadership regarding its keenness to improve ties with Pakistan. Both countries are currently holding talks because they want to put an end to the animosity that has characterized their relations in the past. A number of positive developments have meanwhile taken place. After Pakistan agreed to give MFN status to India, New Delhi allowed Indian individual and entities to invest in Pakistan. An agreement has been reached to set up branches of the banks of each country in the other. During a meeting between the foreign ministers of the two countries visa restrictions were relaxed to allow more people to people contacts and facilitate visits by businessmen. The developments have been widely welcomed in both countries where people want more measures of the type. There is a need on the part of India to stop its opposition to the construction of the dam which is vital for Pakistan’s economy. Unless it does so it would add another dispute to the already formidable list of irritants.