No abstract

This paper looks at the Indus Basin Water Strategy for Pakistan. It begins with a historical overview of the Indus Basin Irrigation System (IBIS), the Indus Basin Replacement Works (1960-1980) and the Indus Basin Salinity Control Efforts (1960-2000. The paper then looks at the IBIS irrigation and salinity control investments that have taken place over the last decade (2000)(2001)(2002)(2003)(2004)(2005)(2006)(2007)(2008)(2009)(2010). The paper goes on to look at the present situation of the IBIS as well as discuss an IBIS strategy for the next decade. Finally, the paper discusses supply side and demand management strategies for IBIS. Overall, the paper concludes that Pakistan should focus on (1) Creating Additional Surface Storage, (2) Preserving surface water (particularly through lining canals), (3) Controlling Groundwater and controlling salinity (by discouraging excessive tube-well use), (4) Encouraging general efficiency of irrigation water use (through improved land management techniques), (5) Enhancing yields through improved farming practices, and (6) Fully meeting the environmental concerns of the Indus Delta, river systems and wetlands.

Definitions and Sources Definitions: In this paper it is proposed to use the definition of selfemployed, small scale (2-9 employees), medium scale (10-99 employees) and large scale (100 employees and above) to discuss the issues relating to the Small and Medium Enterprise (SME) sector in Pakistan. The national pension (regulated through the Employees Old Age Benefit Institution Legislation) and health insurance (The Provincial Social Security Institutions Legislation) is applicable to institutions with 10 or more employees and provides a natural cut off point between the small scale and medium and large scale sectors. The cut off between the medium and large scale at 100 workers is also appropriate.

Private foreign investment in Pakistan is regulated by the government's statement of industrial policy issued in 1959 which recognises, welcomes, and facilitates the inflow of private foreign investment in the country. In order to attract foreign investors, the government offers liberal incentives and concessions. In addition all profits are repatriable at the official rate of exchange. An attempt has been made in this note to determine the size and nature of private foreign investment in relation to the rest of the economy and to examine the inflows of private investment and remittances of profits, dividends, etc., made abroad.

The Pakistan economy is currently going through a period of much needed structural adjustment focusing on: (i) Reducing fiscal deficits from about 6 to 4 per cent of GDP, which should reduce public sector borrowing and bring down interest rates and inflation; (ii) Reducing tariffs from an average of about 80 per cent in 1993 to about 60 per cent currently and about 45 per cent next year – which while requiring painful adjustments particularly in the industrial sectors, should make Pakistan more competitive in the long term and also benefit consumers; (iii) Reducing the size of the public sector in the economy by privatising nationalised banks, nationalised and public sector industry and public utilities including power, gas and telecommunications, which should increase the efficiency of these sectors. All these measures have implications for employment generation. In the short term they are slowing down the economy and therefore employment creation is not taking place at the earlier higher rates. In the long term they should help stabilise the economy and add significantly to economic growth.