The government is working on setting up National Water Council (NWC) to launch a coordinated National Water Initiative for federal and provincial governments in areas of flood control, irrigation strategies, construction of dams and to ensure full cost recovery from water users. The NWC comprising provincial representatives and experts from the Indus River System Authority, Wapda and federal flood commission will take a multi-purpose view of the country’s water requirements and develop a balanced portfolio of major infrastructure besides suggesting introduction of water-efficient crops having maximum outputs and new operating rules for major reservoirs. A senior official in the ministry of water and power told Dawn that NWC was being established on recommendations of the Water Sector Task Force of Friends of Democratic Pakistan comprising multilaterals like the World Bank and the Asian Development Bank and leading bilateral lenders, including the US, the UK, Germany, France and Saudi Arabia. The plan was expected to be taken up by the Council of Common Interests for a formal decision in its forthcoming meeting, he said. He said that initially the proposal was to establish a national water commission under Irsa or federal flood commission. The idea was to enhance the institutional capacity of Irsa so that it could also suggest planting of water efficient and more productive crops and accordingly allocate water for provinces and municipal agencies. The official said the-then Irsa chairman who represented Punjab had agreed to the additional role for Irsa. However, the incumbent chairman belonging to Sindh has opposed the move saying Irsa will become controversial in case it deviates from its original role of regulating water shares among provinces in accordance with the Irsa Act of 1991. In his opinion, the changed role will require the water accord to be amended which will open a Pandora’s Box. At a meeting last week, it was opposed by major stakeholders given quite different and special operational mandates of the two major organisations involved — the FFC and Irsa. It was, therefore, agreed that a lean and independent NWC be created that reported to the federal and provincial governments. The Wapda, Irsa and flood commission would contribute their expertise to the new body. And every province would have a member on the NWC. It was decided during the meeting that proper taxation or cost recovery for water supplies would have to be made otherwise users would have no incentive to improve its usage. Based on a pilot model to assess what economic benefits of taking a multi-purpose approach to the operation of the post-Bhasha dam system revealed that overall economic benefits would be 20 per cent higher if more sophisticated operating rules were adopted. The NWC would, therefore, develop operating rules to maximise total social and economic value and to communicate these changes to all involved including provinces, Irsa, flood commission and Wapda. To achieve this, a model from Australia is being followed under which the federal and state governments (provinces in case of Pakistan) have to reach an intergovernmental agreement to improve the management of water resources and provide greater certainty for future investment. The overall objective is to achieve a nationally compatible market, regulatory and planning based system of managing surface and groundwater resources for rural and urban use that optimizes economic, social and environmental issues. It will have six specific action issues including preparing water plans with provision for environment, to deal with over-allocated or stressed water system, introduce registers of water rights and standards for water accounting, expand the trade in water (among the provinces) and above all to improve pricing for water storage and delivery and to meet and manage urban water demands. The NWC will also be responsible for audit of the water uses, monitor distribution of water among stakeholders and its outcomes and give feedback to federal and provincial governments.