The Sindh Water Resource Development and Management Investment Programme will improve the water productivity (income per drop of water) in the Lower Indus Irrigation and Drainage System (LIIDS), and helpful for water availability in severely water deficient areas, which will benefit directly to land owners (small and large), sharecroppers and tenants.
Nevertheless, increased agricultural outputs will increase work opportunities for the landless. According to Poverty and Social Analysis of the project, carried out by the Central and West Asia Department Agriculture, Environment, and Natural Resources Division of Asian Development Bank, the wealth generated will create opportunities for the rural non farm sector to expand and create jobs opportunities for the large amount of rural jobless people.
The construction of small dams and underground water recharge structures will also significantly contribute to increase water availability for domestic purpose. This improvement will have a strong impact on the poorest who cannot afford to pay the tanker delivery services currently used in many of these areas and have to rely on salty, unclean water and walk large distance to ensure their daily water supply, ADB Analysis highlighted.
By securing a clean and perennial water supply close to their home, ADB Analysis revealed that the project will reduce time used for water collection (especially by woman) and risks of water-born diseases of the most vulnerable. President, ADB Analysis mentioned, half of the Sindh population lives in rural areas and suffers from chronic poverty. About 37 percent of the rural population lives below poverty line compared to the 33 percent national average.
Rural households including the landless derive 56 percent of their income from agriculture directly or indirectly. Around 70 percent of the rural population is landless and is mainly employed as agriculture wage workers. Increase in agriculture growth inside and outside the IBIS will have a positive impact on wage rates and growth in the rural non farm sector development and contribute significantly to rural poverty reduction.
The programme concentrates on Lower Indus Irrigation and Drainage System (LIIDS) and the Kohistan and Nagarparkar regions of the Sindh province where the lack of investment in irrigation infrastructure and delivery services improvement keep agricultural productivity low and poverty levels high compared with the rest of the country.
The poverty is particularly acute outside the LIIS where up to 90 percent of the population is reported to be below the poverty line. ADB Analysis revealed that Agriculture is a crucial sector in Pakistan's economy and for poverty reduction since it accounts for about 25 percent of the gross domestic product and employs about half of the labour force. Access to water for irrigation or other purposes is considered similarly important.
Pakistan is considered one of the world's most water-stressed countries, and yet projections are that over 30 percent more water will be needed over the next 20 years to meet increased agricultural, domestic, and industrial demand due to high population growth and a quickly changing economy. Since Pakistan uses almost all of its available surface and underground water, water storage and improved water management will play an essential role in helping Pakistan cope with this situation both in the Indus Basin and outside in the barani, or arid areas.
Pakistan's Poverty Reduction Strategy Paper (PRSP) recognises poverty as a predominantly rural phenomenon and rural development as the key to fighting poverty in Pakistan. The PRSP pro-poor rural development strategy focuses on developing land and water resources, rural electrification, and other sub-sectors as well as on increasing crop and livestock productivity.
The proposed programme expected outputs are in line with this strategy. Similarly, the programme is expected to contribute to increasing access to drinking water, which is seen as an important elements under pillar III of the PRSP and recognised in the Medium-Term Development Framework as a national priority if Pakistan is to achieve its non-income-related objectives in connection with the Millennium Development Goals.
Constraints will essentially be with the improvement of the irrigation services as this implies the continuation and improvement of the reform process. So far, the management of three canal commands was devolved to organise farmers under the supervision of the Sindh Irrigation and Drainage Authority and 11 others are still under the direct control of the centralised bureaucracy.
The Sindh government seems committed to the reform process but lack clarity on the real performance achieved so far. The PPTA has allocated resources to undertake a review of the performance of the reform, identify constraints and make recommendation for improvement to be implemented under the programme.
The selection of MFF subprojects, particularly outside the LIIDS could be subject to political interference that may not benefit the neediest communities. To mitigate this, subproject selection will be guided by strict multi-dimensional selection criteria that include social considerations and benefits to the poor. These will be agreed with the Government, and subproject selection will be monitored throughout the programme.
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