Businessmen Panel Urges NFC to Reconsider Fund Distribution for Water Infrastructure

By Farzana Chaudhry
Lahore, Pakistan

LAHORE: The Federation of Pakistan Chambers of Commerce and Industry’s Businessmen Panel (BMP) has urged the National Finance Commission (NFC) to rethink the current resource distribution mechanism, proposing that the federal government retain at least Rs1,000–1,200 billion for national water infrastructure projects while calling on provincial governments to invest in dam construction and irrigation development.

BMP Chairman and former FPCCI President Mian Anjum Nisar said that floods and water shortages directly affect provincial land and crops, emphasizing that provinces should address these challenges within their own jurisdictions rather than relying solely on the federal government. He noted that under the Constitution and the NFC Award framework, agriculture is a provincial subject, making planning, investment, and execution of water management and irrigation projects primarily a provincial responsibility.

Mian Anjum Nisar pointed out that floods destroy standing crops, erode fertile land, and damage rural infrastructure, while insufficient investment in storage and flood-control mechanisms has left provinces vulnerable. He added that the impact of floods continues after waters recede, causing prolonged water shortages that reduce crop yields. He said that building dams is the only sustainable solution to simultaneously control floods, store surplus water, and ensure consistent irrigation during dry periods.

The BMP chairman highlighted that provinces now receive a larger share of the divisible pool under successive NFC Awards, while the federal government faces limited fiscal space, rising debt, and increasing expenditures. In this context, he argued, it is unrealistic to expect the federal government alone to finance large-scale dam projects.

He called on upcoming NFC Award meetings to prioritize water scarcity and flood management as national concerns. He proposed that the federal government retain a portion of funds specifically for strategic water projects, asserting that such an approach would strengthen national resilience without undermining provincial autonomy.

Mian Anjum Nisar stressed that water security extends beyond provincial boundaries, noting that rivers flow across regions, floods affect downstream areas, and water shortages impact national food supplies. He said coordinated planning between federal and provincial governments, supported by adequate funding, is essential to tackle these interconnected challenges effectively.

He further highlighted the broader economic benefits of dams, including increased agricultural productivity, improved food security, employment generation in rural areas, and reduced dependence on imports. Stored water could also generate low-cost hydropower, lowering industrial energy costs, improving competitiveness, and mitigating inflationary pressures.

Mian Anjum Nisar criticised decades of delays in major dam projects, attributing slow progress to political disagreements and short-term policy thinking. He warned that climate change is intensifying floods and reducing traditional water flows, making immediate investment in infrastructure essential.

The BMP chairman called for stronger coordination between federal and provincial governments, emphasizing the need for transparent planning, clear timelines, and accountability mechanisms to ensure effective use of funds allocated for water infrastructure.