By SKM
August07, 2025
ISLAMABAD: The federal government finds itself on a tightrope as the IMF has stepped up pressure on the top mandarins of the finance ministry to align WAPDA with the State Owned Enterprises (SOE) Act 2023 by changing its existing structure with the Board of Directors (BoD), a Chairman. Under this structure the BoD will appoint a Chief Executive Officer (CEO) who will run the show.
“The government financial managers have given the said undertaking to the Fund under the $7 billion loan program that the WAPDA Act will be changed and aligned as per the SOE Act. It is a structural benchmark. So the Ministry of Water and Resources has been assigned to make a draft with some changes in the WAPDA Act in alignment with the SOE Act 2023, so that the IMF condition could be met,” well-placed senior officials told this to the Exclusivewaves.com.pk.
“However, some powerful circles have come out to oppose this move arguing that WAPDA is, first of all, not a commercial entity, but a strategic organization which erects the water-related structure, that includes dams, hydropower projects, improving irrigation system and maintaining the flood control structure and barrages as well.”
“Water is the life of any country, and Wapda deals with dams such as Tarbela, Mangla and is in the process of erecting Diamer-Bhasha, and Munda dams. The reservoirs have been built with a primary purpose to cater to the irrigational requirements of the four federating units and for these services, Wapda in return does not make business.”
However, hydro generation is a byproduct which is not the main purpose and Wapda’s top priority. The Indus River System Authority (IRSA) – a water regulator, when it asks the Wapda to release the water on demand of the provinces and the water is released, then electricity is generated and when provinces do not submit any demand with the IRSA, then water is not released which is why electricity through turbines is not generated. This is why the electricity generation is called a byproduct of the dams.
“So Wapda through generation of electricity gets the revenue to meet its operational cost and initiate more projects to irrigate more land of the country for better food yields. WAPDA raises funding through bonds based on its financial health and assets for future projects. More importantly, the central government also allocates funds through PSDP per year for these projects.”
“More importantly, Wapda is not a loss-making entity, however, it is more than a strategic entity. The SOE Act 2023 was made to turn around the loss-making organizations. However, WAPDA by nature is not a profit-making body as it deals with the country’s dams and water-related structure. Pakistan’s all reservoirs ensure the regulated water supply to four provinces for irrigation purposes to maintain and enhance the food security of the country. Therefore, it should not be treated as per the SOE ACT.”
The powerful circles are of the view that Financial Managers of the sitting regime should not have given such undertaking to the IMF. The defense-related entities and strategic projects and nuclear power plants are exempted from the SOE Act. Water reservoirs and their maintenance and erecting more dams are the defense line against the water war initiated by India. “So WAPDA should be treated as a defense and strategic organization and let it run under the existing WAPDA Act.”
Under the latest scenario, after the Pahalgam false flag operation staged by India, the Modi government unilaterally held the Indus Waters Treaty 1960 in abeyance and manipulated for many times the flows of Chenab and Jhelum rivers before the start of the monsoon and cloud burst phenomenon. This has increased the importance of dams manifold in the country. So keeping in view, the expected water war with India in the forthcoming winter season, as India under the Modi administration is most likely to manipulate in winter the water flows which are destined to reach Pakistan during winter destroying the sowing of various crops. This will cause a huge dent towards the Pakistan’s food autarky. So, in the time to come, Pakistan has to complete its ongoing dams with a fast pace. Pakistan leadership has already declared that if India initiates any manipulation in water flows, it will be considered as an Act of War.
Given the situation, the Finance Ministry officials, according to top sources, are required to sensitize the IMF that bringing WAPDA under the SOE Act will serve nothing but it will prove detrimental for the country. As under SOE Act, Independent directors in majority will be appointed with the government directors in minority. The Board of Directors will elect a chairman which may be from the private sector. The BoD will appoint the CEO who will run the show. Under this structure, the CEO will try to make WAPDA a more profit-making entity through increasing the hydro generation despite the no demand of water releases from provinces. This is how the water would go wasted at the cost of hydro generation knowing the fact that dams are built for irrigation requirements of the country. Ends
