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World Bank wants Pakistan to accept ‘neutral expert’ in dam dispute

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World Bank wants Pakistan to accept ‘neutral expert’ in dam dispute

Updated June 05, 2018



ISLAMABAD: The World Bank has asked Pakistan to stand down from pursuing its stand of referring the Kishanganga dam dispute to the International Court of Arbitration (ICA) and instead accept India’s offer of appointing a “neutral expert”.

In a fresh communication last week, World Bank president Jim Yong Kim advised the government to withdraw from its stand of taking the matter to the ICA for which the bank had on Nov 10, 2016 even picked a US chief justice, the rector of Imperial College, London, and the WB president for appointing chairman of the court to resolve the dispute over the dam.

Pakistan considers the construction of the Kishanganga dam in India-held Kashmir over the waters flowing into the western rivers a violation of the Indus Waters Treaty 1960 since it will not only alter the course of the river but also deplete the water level of the rivers that flow into Pakistan. Thus the dispute should be referred to the international court of arbitration.

On the other hand, India describes the issue as differences between it and Pakistan over the design of the dam and, therefore, it should be addressed by some neutral experts.

A source privy to the development told Dawn that Pakistan believed that acceding to India’s proposal of referring the dispute to neutral experts or withdrawing from its stand would mean closing the doors of arbitration and surrendering its right of raising disputes before international courts. “It will become a precedent and every time a dispute emerges between Pakistan and India, the latter will always opt for dispute resolution through neutral experts,” he said.

CJP Nisar says water will now be biggest priority of apex court

In Dec 12, 2016, the WB president had informed Pakistan through a letter to then finance minister Ishaq Dar that he had decided to “pause” the process of appointing the ICA chairman as well as the neutral expert.

At this, Mr Dar had lodged a strong protest with the World Bank telling it point-blank that Pakistan would not recognise the pause. He had asked the bank to play its due role in the matter.

Pakistan believes that on the one hand the World Bank has tied its hands from raising the dispute at the ICA, and on the other, it has not blocked the Indian effort to complete the construction of the dam.

The World Bank did not even heed to Pakistan’s concern when provided with satellite images during a number meetings with the bank that India was constructing the dam. The bank even denied Pakistan the opportunity to stay the construction of the dam.

In February last year, the World Bank further extended its pause until the secretary-level talks between the two countries bore some fruits. Subsequently, four rounds of talks were held in February, April, July and September in Washington in which the bank was willing to appoint an international court to determine which forum under the treaty was proper — arbitration or neutral experts. But India did not accept it, the source said.

The World Bank even declined Pakistan’s forceful plea on May 22, 2018, asking it to express concern by stating that it had “noted the inauguration of the Kishanganga Dam by Indian Prime Minister Narendra Modi”, the source added.

The 1960 treaty recognises the World Bank as an arbitrator in water disputes between India and Pakistan as the bank played a key role in concluding this agreement which allows India to have control over the water flowing into three eastern rivers — Beas, Ravi and Sutlej — also permitting India that it may use the water of western rivers — Chenab, Jhelum and Indus — but it cannot divert the same.

India considers this as a permission to build “run-of-the-river” hydel projects that neither change the course of the river nor deplete the water level downstream.

SC hearing on water scarcity

On Monday, a three-judge Supreme Court bench headed by Chief Justice Mian Saqib Nisar directed the federal government to furnish a comprehensive report on reduced flow of the Neelum river because of the construction of the Kishanganga dam.

The court had taken up a petition filed by Barrister Zafarullah Khan of the Watan Party seeking its directive for construction of dams, including teh Kalabagh dam, to ameliorate the worsening water scarcity in the country.

The petitioner informed the court that for the past 48 years not a single dam had been built when 20 per cent of development in the country depended on the availability of water.

At this, the chief justice in a loud and clear message said that from now on the biggest priority of the court would be water and the court would hear matters relating to the scarcity of water and lack of initiative to build dams on Saturday in Karachi, on Sunday in Lahore and later in Islamabad, Peshawar and Quetta.

The court is taking the issue of water scarcity very seriously and, while referring to the building of dams by India, regretted that the water level in the Neelum and Jhelum rivers had reduced considerably.

“We will be failing in our duty if we do nothing for posterity,” the chief justice observed. He regretted that not a single political party had ever mentioned the water crisis in their respective manifestos.

In his petition, Barrister Zafarullah highlighted that nobody was willing to sponsor loan to Pakistan to build Diamer-Basha dam that might cost $18-20 billion.

The petition regretted that instead of saving water in reservoirs, 35.5 million acre feet (MAF) of water was being drained to the sea annually. It said had Kalabagh dam been built, it would have saved 6.5MAF water annually in its reservoir which would be filled during the rainy season.

https://www.dawn.com/news/1412082/world-bank-wants-pakistan-to-accept-neutral-expert-in-dam-dispute

Published in Dawn, June 5th, 2018

 
World Bank wants Pakistan to accept ‘neutral expert’ in dam dispute

Updated June 05, 2018



ISLAMABAD: The World Bank has asked Pakistan to stand down from pursuing its stand of referring the Kishanganga dam dispute to the International Court of Arbitration (ICA) and instead accept India’s offer of appointing a “neutral expert”.

In a fresh communication last week, World Bank president Jim Yong Kim advised the government to withdraw from its stand of taking the matter to the ICA for which the bank had on Nov 10, 2016 even picked a US chief justice, the rector of Imperial College, London, and the WB president for appointing chairman of the court to resolve the dispute over the dam.

Pakistan considers the construction of the Kishanganga dam in India-held Kashmir over the waters flowing into the western rivers a violation of the Indus Waters Treaty 1960 since it will not only alter the course of the river but also deplete the water level of the rivers that flow into Pakistan. Thus the dispute should be referred to the international court of arbitration.

On the other hand, India describes the issue as differences between it and Pakistan over the design of the dam and, therefore, it should be addressed by some neutral experts.

A source privy to the development told Dawn that Pakistan believed that acceding to India’s proposal of referring the dispute to neutral experts or withdrawing from its stand would mean closing the doors of arbitration and surrendering its right of raising disputes before international courts. “It will become a precedent and every time a dispute emerges between Pakistan and India, the latter will always opt for dispute resolution through neutral experts,” he said.

CJP Nisar says water will now be biggest priority of apex court

In Dec 12, 2016, the WB president had informed Pakistan through a letter to then finance minister Ishaq Dar that he had decided to “pause” the process of appointing the ICA chairman as well as the neutral expert.

At this, Mr Dar had lodged a strong protest with the World Bank telling it point-blank that Pakistan would not recognise the pause. He had asked the bank to play its due role in the matter.

Pakistan believes that on the one hand the World Bank has tied its hands from raising the dispute at the ICA, and on the other, it has not blocked the Indian effort to complete the construction of the dam.

The World Bank did not even heed to Pakistan’s concern when provided with satellite images during a number meetings with the bank that India was constructing the dam. The bank even denied Pakistan the opportunity to stay the construction of the dam.

In February last year, the World Bank further extended its pause until the secretary-level talks between the two countries bore some fruits. Subsequently, four rounds of talks were held in February, April, July and September in Washington in which the bank was willing to appoint an international court to determine which forum under the treaty was proper — arbitration or neutral experts. But India did not accept it, the source said.

The World Bank even declined Pakistan’s forceful plea on May 22, 2018, asking it to express concern by stating that it had “noted the inauguration of the Kishanganga Dam by Indian Prime Minister Narendra Modi”, the source added.

The 1960 treaty recognises the World Bank as an arbitrator in water disputes between India and Pakistan as the bank played a key role in concluding this agreement which allows India to have control over the water flowing into three eastern rivers — Beas, Ravi and Sutlej — also permitting India that it may use the water of western rivers — Chenab, Jhelum and Indus — but it cannot divert the same.

India considers this as a permission to build “run-of-the-river” hydel projects that neither change the course of the river nor deplete the water level downstream.

SC hearing on water scarcity

On Monday, a three-judge Supreme Court bench headed by Chief Justice Mian Saqib Nisar directed the federal government to furnish a comprehensive report on reduced flow of the Neelum river because of the construction of the Kishanganga dam.

The court had taken up a petition filed by Barrister Zafarullah Khan of the Watan Party seeking its directive for construction of dams, including teh Kalabagh dam, to ameliorate the worsening water scarcity in the country.

The petitioner informed the court that for the past 48 years not a single dam had been built when 20 per cent of development in the country depended on the availability of water.

At this, the chief justice in a loud and clear message said that from now on the biggest priority of the court would be water and the court would hear matters relating to the scarcity of water and lack of initiative to build dams on Saturday in Karachi, on Sunday in Lahore and later in Islamabad, Peshawar and Quetta.

The court is taking the issue of water scarcity very seriously and, while referring to the building of dams by India, regretted that the water level in the Neelum and Jhelum rivers had reduced considerably.

“We will be failing in our duty if we do nothing for posterity,” the chief justice observed. He regretted that not a single political party had ever mentioned the water crisis in their respective manifestos.

In his petition, Barrister Zafarullah highlighted that nobody was willing to sponsor loan to Pakistan to build Diamer-Basha dam that might cost $18-20 billion.

The petition regretted that instead of saving water in reservoirs, 35.5 million acre feet (MAF) of water was being drained to the sea annually. It said had Kalabagh dam been built, it would have saved 6.5MAF water annually in its reservoir which would be filled during the rainy season.

https://www.dawn.com/news/1412082/world-bank-wants-pakistan-to-accept-neutral-expert-in-dam-dispute

Published in Dawn, June 5th, 2018
On reality , Pakistani land dried due to no water in the rivers. World Bank won t help anything. Just accept Indian terms ... which is not going to help Pakistan.
 
Or the damn can be blown up and problem solved. War drums will beat but will nuclear stand be accepted by the world or even India???
 
Pakistan was asleep. It's not India's fault. It's our fault

No dams were built and you are perennially out of money and knocking the doors of IMF . As they say, its the economy stupid. All the bluster aside, till you don't stop begging to International donors and have a weak economy, you cant compete and neither can Iron Brother or Ummah help you in this. Looks like you are ready to knock on IMF's door yet again.

Money Matters
Financial mess

The caretaker government led by Prime Minister Justice (retd) Nasirul Mulk has sworn in after taking oath and assumed powers with the mandate to hold free and fair elections in the country within the stipulated timeframe of two months. The caretaker cabinet is expected to assume its charge this week. The incoming finance minister will have to ensure a smooth transition on the economic front. This will help avert any blown out crisis-like situation during the tenure of the caretaker setup, so that smooth and timely transition of power can happen. This will be the second transfer of power to an elected government in Pakistan.

325122_7682647_updates.jpg


There are many things that the caretaker government and political parties contesting elections will have to ensure on the political as well as the economic front to ensure that the masses get to vote for their representatives. First and foremost being the end of uncertainty.

Any effort to delay elections may further aggravate the economic crisis because multilateral creditors like the International Monetary Fund (IMF), World Bank and the Asian Development Bank may show reluctance to work with any transitional government. The creditors may not be keen to dole out a much needed bailout package to remove external sector woes if an elected government is not in place.

While there is no doubt any more that Pakistan will have to knock at the door of the IMF again with a begging bowl, the political parties must come forward with some home grown reform, agendas of their own.

The agendas must be undertaken with the support of the IMF, so when the party assumes power after getting the mandate of the masses, it can roll up its sleeves and get to business. Merely relying on sloganeering and strong claims that Pakistan will not opt to go back to the IMF can no longer be relied on.

If the elections are held on time, the elected prime minister’s first meeting might be with the fund officials.

The caretaker finance minister must remain vigilant and not consider this stint a bed of roses. The finance minister will have to decide, as soon as assuming power in the caretaker setup, to either retain the existing economic team till the last month of the outgoing fiscal year 2017/18 or to bring in new faces at the ministry to control matters.

Although, the existing finance team led by Finance Secretary Arif Ahmed Khan is struggling to fix financial mess, the caretaker finance minister must review in detail and then analyse the real situation. The analysis is especially important as far as the twin deficits - the ever increasing budget deficit and current account deficit – are concerned.

A thorough analysis will enable the incoming finance minister too to either post out the existing team at the Finance Ministry and the Federal Board of Revenue or to continue with them for at least a month if they are found helpful in delivering on three major fronts of the economy.

Controlling the yawning budget deficit, which might have crossed 5 percent to 5.5 percent of gross domestic product (GDP) in the first eleven months would be one of the first and foremost challenge for the upcoming finance minister.
The budget deficit is likely to reach 6.5 percent to 7 percent of GDP till the end of June 2018, despite taking circular debt out of the official books. Moreover, the likelihood of provinces having left anything in their kitty to generate revenue surplus to the tune of one percent of the GDP is also highly improbable.

The federal government will have no option but to deduct the desired amount from their share, before transferring to the provinces in the last month, if it wants to avoid touching eight percent deficit for the outgoing fiscal year.

A reality check is much needed. Instead of hiding the mess under the carpet, the incoming finance minister must first analyse the situation and then undertake all required steps to help the country avoid further ballooning of the budget deficit. The caretaker government will have to take many tough decisions.

A major decision among those would be increasing the prices of petroleum products, as no other option is left on the fiscal side of the economy.

The Pakistan Muslim League-Nawaz (PML-N) regime as well as provincial governments, before relieving powers, splurged money and maximised their dole outs and incentives to lure voters in view of the next general elections. The frequent issuances of cheques, provision of Rs31 billion refunds and many other incentives damaged the country’s fiscal discipline. Now, it will be the unpleasant responsibility of the caretaker government to clean the house as much as possible before handing it over to the elected government within a two months period.

By slashing down the budget deficit, the caretaker government can suppress demands for imports, though time is very short and the task enormous, they will have to take steps to avoid the eruption of a major crisis.

It is not an option to sit idle and wait for the monster to come and swallow everything.
The foreign currency reserves are depleting at supersonic speed, so the incoming finance minister will have to rush to do something to ensure dollar inflows in the range of $2 to $4 billion on immediate basis. The foreign exchange reserves have continued to decline in the range of over $250 to $300 million on weekly basis during the last two months. If this pace continues in the coming month without receiving any major injection of dollars, then it will be difficult to stop run out for dollarisation of the economy and exchange rate may come under immense pressures.

The due repayments as well as rising imports bill cannot sustain with this meagre foreign currency reserves position. The current account deficit crossed $14 billion for first ten months of the current fiscal year and many independent economists are projecting it in the range of $17 to $18 billion for the whole fiscal year 2017/18.

With this kind of surge in the current account deficit, the finance minister will have to raise alarm bells, so that the incoming finance minister scheduled to assume charge this week, can device an effective strategy on short-term basis. Otherwise, the crisis might aggravate in a few weeks, exactly at the time when the country will be passing through the next general elections.

The writer is a staff member


https://www.thenews.com.pk/magazine/money-matters/325122-financial-mess
 
India violated the Indus water treaty, how hard is it for the world bank to understand this? They are clearly under Indian influence. When India has clearly said that they want to dry Pakistan waters completely, this statement is enough to proof what India is doing in the region & are only promoting tension & problems in the region.
 
FATF listing, World Bank reprimand to Pakistan, Knocking on IMF's door..... You think International order is based on the principle of equality of nations? You pissed off uncle SAM and are broke. Now face the music. BTW we continue building dams on chenab and the other rivers while all this is happening.
 
Before you blow up the dam thing, make sure you have something to stop the gushing water or pray to god and put on your swimsuits.

At least we have swimsuits. You still wear lungis and make your own gods and when they get old throw them away. Next time you bring religion into it think what the reply will be.
 
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