rd

The 3 International Conference on Water Resources and Arid Environments (2008)

st
and the 1 Arab Water Forum

Role of Dams in the Economic Growth of Pakistan

Zahid Majeed1,Awais Latif Piracha2 and Khwar Munir1

1. Hydro Planning Organization, Pakistan Water and Power
Development Authority, Lahore, Pakistan
2. School of Social Sciences, University of
Western Sydney, Australia

Abstract

Pakistan is located in a semiarid to arid region where rainfall is highly

deficient and does not match the crop requirements. In most plain areas of the
country it is less than 500 mm and is unevenly distributed over the year. As
Pakistan is not an oil rich country, its economy depends on agriculture sector
which accounts for about 23 % of the GDP and 42% of total employed labour
force. It is also the largest source of foreign exchange earnings. Agriculture of
country is mostly dependent on Indus River System (IRS). IRS maintains
World’s largest integrated irrigation network called Indus Basin Irrigation
System (IBIS).
Historically IBIS had been fed through run of river supplies derived from
Indus and its five major tributaries. As a result of Indus Water Treaty with India
in 1960, Indus Basin Project (IBP) works were constructed during the sixties
and the seventies. Two mega multipurpose projects (Mangla and Tarbela
dams), five barrages one gated siphon and eight interriver link canals were
constructed to regulate and convey water of western rivers to irrigation canals
taking off from eastern rivers. Pakistan Water and Power Development
Authority (WAPDA) completed the construction of all sixteen IBP components
within a decade. Two multipurpose dams, Mangla (Live Storage 6.6 billion
cubic meter (BCM), Installed Capacity 1000 MW) and Tarbela (Live Storage
11.9 BCM, Installed Capacity 3478 MW) were built on Jhelum and Indus rivers
respectively. These multipurpose mega dams provide about 70% of total
existing storage capacity and hydropower infrastructure (producing one fifth of
the country’s electricity during 2007-08). These dams were constructed to
regulate and supplement flows in irrigation network to sustain Pakistan’s
agriculture. These dams are primarily operated according to irrigation
requirements of the country while inexpensive hydroelectricity is produced as a
byproduct. This paper highlights the role of the two large multi purpose dams
i.e. Mangla and Tarbela commissioned in 1967 and 1976 respectively, in the
economic development of Pakistan. Careful analysis of four decades historic
data (from 1967 to 2006) after the construction of these dams on the canal
head diversions of IBIS, when compared with the historic run of river supplies,
reveals that about 20% additional flows are available for irrigation during low
flow season. The paper also analyzes these dams role in providing
hydroelectricity that sustains the energy sector of Pakistan. Moreover impact on
the economic growth of the country due to failure to construct the mega
multipurpose dam since 1976 to date is explored. The results reveal that
sustainability in the economy of country is only possible by building large multi
purpose dams for storage to regulate flows for irrigation and hydropower.

Keywords: Indus River System, Indus Basin Irrigation System, Mangla and
Tarbela Dams

Introduction

1 Country Over View

Pakistan has an area of 796095 km2 and a population of 160 million.
Population wise Pakistan is the ninth largest country in the World population
wise. Pakistan has one of the largest networks of surface irrigation systems in
the World irrigating about 18 million hectares (MH) of land.
Politically the country is divided into four provinces, Punjab, Sindh, North
West Frontier Province (NWFP) and Balochistan. Moreover some areas have
special status, which include Federally Administrated Tribal Area (FATA),
Federally Administrated Northern Area (FANA) and disputed State of Azad
Jammu and Kashmir with India (Fig -1).

2 Indus River System (IRS)

Agriculture of country is mostly dependent on Indus River System (IRS),
which comprises of the rivers Indus, Jhelum, Chenab, Ravi, Bias and Sutlej and
the northern and western tributaries (Fig 1). It maintains World’s largest
integrated irrigation network called Indus Basin Irrigation System (IBIS).
 TAJIKISTAN

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Figure 1: Map of Pakistan showing River System of Pakistan.

The impact of the Indus on Pakistan is considerable because of its size

and capacity. It has the 7th largest delta and the 12th largest drainage area in
the world. Its annual water runoff places it the10th, and annual sediment
discharge places it the 6th in the world. Hence, by any yardstick, Indus River
and its basin is a very large geographical and natural phenomenon (Majeed
Zahid , 2008) .
Indus River and its tributaries on average carry about 180 BCM of water
annually. This includes about 169 BCM contribution from the three western
rivers of Indus, Jhelum and Chenab and their tributaries Chitral, Swat, Kabul,
Haro and Soan rivers. The remaining 11 BCM of water is contributed by the
eastern rivers1 of Ravi, Sutlej and Bias. Most of the inflow, about 131 BCM is
diverted for irrigation while the remainder flows to the sea phenomenon
(Majeed Zahid, 2008).

3 Historical Background Of Indus Basin Irrigation System

Historically IBIS had been fed through run of river supplies derived from
Indus and its five major tributaries. Pakistan after its independence in 1947 had
a water dispute with India when on April 1, 1948 India cut off the flows of the
eastern rivers, on which most of the Pakistan’s agriculture is dependent. The
dispute was resolved through Indus Basin Treaty signed between Pakistan and

1
Waters of these three rivers have been now completely utilized by India according to the
Indus Basin Treaty signed in 1960.
India in September 1960 under aegis of the World Bank after lengthy
negotiations.
The Indus Basin Treaty provided waters of three eastern rivers Sutlej,
Beas and Ravi to India and three western Rivers Chenab, Jhelum and Indus to
Pakistan. For supplying water to Pakistan’s irrigation network (the largest man
made canal system in the world) the IBP was designed and constructed to
replace the waters of eastern rivers.
Under IBP works, two mega multipurpose projects (Mangla and Tarbela
dams), five barrages one gated siphon and eight inter river link canals were
constructed to regulate and convey water of western rivers to irrigation canals
taking off from eastern rivers. WAPDA completed the construction of sixteen
IBP components within a decade (WAPDA, 2006-07).
Tarbela and Mangla multi purpose mega projects sustain Pakistan’s
agriculture economy by supplementing and regulating irrigation supplies and
providing inexpensive electricity to the country. Bulk of flows in IRS, about 88%
of total mean annual are experienced in the 70 to 90 days) from June to August
of summer cropping period of Kharif (April to September). The remaining 12%
flows are available for winter cropping period of Rabi (October to March), (Ch :
2005). Flows in Rabi season are low because of the frozen glaciers and low
rainfall during the winter season. It is reverse to the irrigation requirement,
which is 60% for Rabi and 40% for Kharif. Therefore high flow variation and
deficient rainfall dictates that mega storage dams be constructed to optimally
use the water throughout the year according to crop requirements (Ch: 2005).
Neglecting addition of mega multi purpose dam during last three
decades for storage and hydel power generation after construction of Mangla
and Tarbela dams has resulted in less availability of water for irrigation and
high electricity tariff which has negative impact on the economic growth of
Pakistan.

Mangla Dam
It is an earth fill dam built across river Jhelum (12th biggest of its type in
the World) completed in 1967. Its height above the riverbed is 116 m with a
crest length of 3.15 km. It has a lake area of 256 km2 having a total gross
storage of 6.52 BCM (presently reduced to 5.52 BCM) for supplementing and
regulating irrigation supplies. Moreover it has hydropower generation capacity
of 1000 MW (10 x 100 MW), which produces mean annual electricity of 5 billion
KWh. Main spillways has a capacity of 28612 m3/sec and emergency spillway
has a capacity of 6500 m3/sec.
Figure 2: View of dam and Reservoir from Mangla Fort

Tarbela Dam
It is an earth and rock fill dam built across river Indus. It was the largest
in the World at the time of its completion in 1977. Its height above the riverbed
is 148 m and its crest length is 2.75 km. It has a lake area of 256 km2 having a
gross storage of 14.3 BCM (presently reduced to 10.3 BCM) for supplementing
and regulating irrigation supplies. Moreover it has hydropower generation
capacity of 3478 MW consisting of 14 units. First 4 units of 700 MW were
installed in 1977, next 4 units of 700 MW in 1982 then 2 units of 350 MW in
1985 and finally 4 units of 1782 MW capacity were installed in 1992-93. It
generates mean annual electricity of 15 billion KWh. Main spillway has a
capacity of 18413 m3/sec and auxiliary spillway has a capacity of 23796 m3/sec.

Figure 3: Tarbela Dam and its Lake Figure 4: Tarbela Power House
 The agricultural benefits of the Tarbela project are evident from the fact
that canal-irrigated areas in the country increased by about 45 % from 10
million ha to 15 million ha as a result of increased canal supplies because of
Tarbela Dam. The total cultivated area in the country increased by about 13%
from 19.5 million ha before Tarbela to 22 million ha presently. It also resulted in
an improved cropping pattern for areas in the country receiving irrigated water
from Tarbela. The increases in the cultivated areas are, for wheat (37%), for
cotton (45 %), for rice (40%) and for sugar cane (52 %) (Majeed Zahid: - 2006).

Impact Of Dams Operation On Water Regulation And Power Sector

1 Impact Of Dams Regulation On Canal Withdrawals
These mega dams optimally regulate the flows for IBIS throughout the year by
storing water in Monsoon season from June to August for Rabi crops and for
early Kharif i-e April and May and late Kharif i-e September. Further more since
commissioning of these dams sensitivity to canal with drawls in Rabi and early
Kharif has decreased.

1.1 Estimated Financial Water Storage Benefits

The total water storage benefits corresponding to releases for irrigation
between 1966-67 to 2005-06 from both the dams is 547 BCM stands at 2.60
billion US$ 2(Calculated at a rate of Rs. 200/acre foot3 from 1966-67 upto 1991-
92 and from 1992-93 to 1996-97 at the rate of Rs.300/acre-ft and thereafter at
the rate of Rs.900/acre-ft upto 2005-06 at present exchange rate of Rs with US
$) given in Table 1 and shown in Figure 5.

2
1 US $ = Rs. 72 ( July 2008)
3
1 acre-foot = 1232 m3
Table 1 : Total irrigation flows benefits of both dams from their commissioning upto 2005-06.

Year Mangla Tarbela Total Releases Million

(from June to July) Release (BCM) Release (BCM) (BCM) US $

1967-68 to 1980-81 76.96 - 76.96 173.5

1975-76 to 1980-81 - 63.63 63.63 143.5
1981-82 to 1985-86 31.32 59.91 91.23 205.7
1986-87 to 1990-91 28.93 51.90 80.83 182.3
1991-92 to 1995-96 27.50 43.38 70.88 239.7
1996-97 to 2000-01 28.06 54.43 82.49 837.0
2001-02 to 2005-06 28.58 52.27 80.86 820.4

TOTAL
221.35 325.53 546.88 2602.0
Accumulated Irrigation Benefits by Dam

3000
2602.03
2500
Releases (Million US $)

2000
1781.65
1500

1000 944.65

500 704.94
522.69
317.00
0 0
1966-67

1980-81

1985-86

1990-91

1995-96

2000-01

2005-06

Years

Figure 5: Total accumulated benefits to date due to flow releases from dams from 1966-67 to
2005-06 (ref : Wapda Annual Report (2006-07))
1. 2 Water Additionality Assessment Due To Dams Operation
Impact of Mangla and Tarbela Dam’s reservoir operation on the canal
head diversion of IBIS has been analyzed for the post-dam period of 1967-
2006 and compared with the pre-reservoirs period of 1960-67 by using historic
discharge data. Flow measurements are taken at the rim-stations of Indus
Basin Rivers at points where these enter the plains or at key locations such as
storage sites. The record at rim-stations does not account for the run-off
generated from local tributaries below these stations. Additionally Chashma
Barrage cum Reservoir having a live storage of about 0.6 BCM on Indus which
was commissioned in 1971 is included for calculation at rim stations but not
described because its storage is about 30 times and releases impact is about
15 times less than the releases gained by Mangla and Tarbela dams together.
Historic stream flow data is collected from WAPDA and Indus River
System Authority (IRSA). Designated rim-stations of western rivers are at
Kalabagh, Nowshera, Mangla and Marala on Indus, Kabul, Jhelum and
Chenab, while those on Eastern Rivers are at Balloki and Suleimanki on Ravi
and Chenab Rivers, respectively.
Further the assessment of impact has been sub-divided into low flows of
late Kharif (September); Rabi (October to March); and early Kharif 2006;
comparison of canal head withdrawals during different periods (Figure 6); and
percentage increase of canal head withdrawals in the period 1976-2006 against
the base period 1960-1967 (Figure 7).
The impact assessment on canal head withdrawals of IBIS has been
calculated on the evaluation of canal head withdrawals in IBIS over 1960-2006
(Table 2); and storage The above information has been utilized to derive the
relevant results pertaining to: historic uses and available surface water to IBIS
during low flow seasons from 1960- (April-June) and high flow period (July-
August). Release from the dams during low flow seasons from 1967-2006
(Table 3).
Above evaluation reveals that the increase in canal head withdrawals
from 1960-67 (base period) to 1976-2006 for the low flow period of early Kharif,
late Kharif and Rabi was around 20 % (refer Figure 7). In quantitative terms the
corresponding increase in canal head withdrawals was about 15.32 BCM as
given in table 2 column 9. This clearly indicates these dams brought about
increase in canal head withdrawals.
Table 2: Canal Head Withdrawals in the Indus Basin Irrigation System 1960-2006
Low
Flow
High Kharif Apr-
Early
Flow Late Total Rabi Jun-
Sr. Kharif Annual
Period Kharif Kharif (Apr- (Oct- Sep
#. (Apr- (6+7)
(Jul- (Sep) Sep) Mar) and
Jun)
Aug) (3+4+5) Oct-
March
(8-4)
(1) (2) (3) (4) (5) (6) (7) (8) (9)
1. Pre-Mangla
(1960-67) 29.92 31.02 13.44 74.39 34.08 108.47 77.45
2. Pre-
Chashma 32.64 32.24 14.27 79.15 37.61 116.76 84.52
(1967-71)
3. Pre-Tarbela
(1971-76) 31.31 33.15 14.01 78.46 37.18 115.64 82.49
4. Post-Tarbela
(1976-2006) 34.42 32.50 14.87 81.79 43.54 125.33 92.82
5. Increase in
1976-2006
with respect 15 % 4.8 % 10.65 % 9.95 % 27.73 % 15.54 % 20 %
to 1960-67
periods.
All releases are given in Billion Cubic Meter s(BCM)

Table 3: Storage Release from the On-Line Reservoirs During Low Flow Seasons from 1967-
2006

Early Late
Sr. Rabi
Period / Reservoir Kharif Kharif Total
# (Oct-Mar)
(Apr-Jun) (Sep)

1. Pre-Chashma (1967-71)
(Mangla) 0.29 0.48 5.34 6.11

2. Pre-Tarbela (1971-76)
(Mangla +Chashma) 0.11 0.27 6.51 6.89

3. Post-Tarbela (1976-2006)
(Mangla+Chashma+Tarbela) 1.25 1.74 13.82 16.81

All releases are given in Billion Cubic Meters (BCM)

 140.00

120.00
Volume (BCM)

100.00

80.00

60.00

40.00

20.00

0.00
Early Kharif (Apr- High Flow (Jul- Late Kharif (Sep) Total Kharif (Apr Rabi (Oct - Mar) Annual (Apr -
Jun) Aug) - Sep) Mar)
Period

Pre- Mangla-> (60-67) Pre-Chashma->(67-71)

Pre-Tarbela->(71-76) Post-Tarbela->(76-06)

Figure 6: Comparison of Canal Head Withdrawals of Different Periods

30
Percent Increase (%)

27.73%
25 20%
20 15% 15.54%

15 10.65% 9.95%
10 4.8%
5
0
Early Kharif High Flow Late Kharif Total Kharif Rabi (Oct - Annual (Apr Total Low
(Apr- Jun) (Jul- Aug) (Sep) (Apr - Sep) Mar) - Mar) Flow (Early
Kharif+Late
Kharif+Rabi)

Period

Figure7: Percentage Increase of canal withdrawals in period 1976-2006 against 1960-1967

International Panel of Experts (IPOE) Review Studies on Water

Escapages Below Kotri Barrage in November recommended that an escapage
of 142 m3/s (5,000 ft3/s) at Kotri Barrage throughout the year is required to:
check seawater intrusion; accommodate the need for fisheries and
environmental sustainability; and to maintain and preserve the river channel
morphology. Based on the post-Tarbela flow data, the above recommendations
would result in a required additional release downstream of Kotri Barrage
during low flow months of 1.55 BCM (1.26 MAF) in an average year and 2.71
BCM (2.20 MAF) in a typical dry year. This is also ensured due to presence of
the storage dams to maintain minimum flows as and when required
Government of Pakistan, (2005).
2 Impact on Power Sector
These dams made a substantial contribution to the interconnected
national power system. The total electricity generation of Mangla and Tarbela
hydropower plants was 478 billion KWh with total direct benefits of 6.2 billion
US$ upto year 2005-06 (Calculated at various exchange rates over the years of
Rupees with US $ price/unit is 0.3 Rs/KWh) accumulated benefits are shown in
Figure 8 in the Table 4.
Accumulative generation of Mangla and Tarbela dams aggregated to
478 billion KWh from their commission up to year 2005-06 which is equivalent
saving of about 119 million tons of furnace oil, which saves foreign exchange of
13.8 billion US$ (at various exchange rates of Rs with US $ and oil prices over
the years) and greenhouse gas emissions (details are given in Table 5). Total
share of electricity due to these dams was about 50% of total power system up
to 1995-96, which subsidize the whole electricity system of the country with
generation cost of less than half a cent. Because of failure in constructing new
dams the hydel generation of the country reduced to about 30% of the total in
2006-07, which is responsible for steep hike in electricity tariffs.

7000
6189.36
Accumulated Hydroelectricity

6000
Benefits (Million US $)

5712.96
5000 5114.30
4000 4099.27
3000 2908.40
2000
1712.42
1000

0 0.00
1966-67

1980-81

1985-86

1990-91

1995-97

2000-01

2005-06

Years (From June to July)

Figure 8: Total accumulated benefits to date due to hydroelectricity generation from dams from
1966-67 to 2005-06 (ref : Wapda Annual Report (2006-07))
 Table 4: Hydel Electricity Generation Benefits of both dams from their commissioning to 2005-06
Year Mangla Tarbela Total Benefits
(from June to July) (GWh) (GWh) (GWh) (Million US $)

1967-68 1980-81 41028 - 41028 1243

1975-76 to 1980-81 - 15482 15482 469
1981-82 to 1985-86 21692 32127 53819 1196
1986-87 to 1990-91 28643 49240 77883 1191
1991-92 to 1995-96 30533 68264 98797 1015
1996-97 to 2000-01 22533 73252 95784 599
2000-01 to 2005-06 23482 71322 94805 476
Total 167911 309687 477598 6189

Table 5: Saving in million tons of oil equivalent due hydel electricity generation both dams from
their commissioning to 2005-06.
Savings in
Year Mangla Tarbela Total Furnace Oil Savings
(from June to July) (GWh) (GWh) (GWh) Mill. Tons (Mill US$)

1967-68 1980-81 41028 - 41028 10 611

1975-76 to 1980-81 - 15482 15482 4 231
1981-82 to 1985-86 21692 32127 53819 13 1722
1986-87 to 1990-91 28643 49240 77883 19 2036
1991-92 to 1995-96 30533 68264 98797 25 2250
1996-97 to 2000-01 22533 73252 95784 24 3006
2000-01 to 2005-06 23482 71322 94805 24 3908
Total 167911 309687 477598 119 13765

Impact on the Energy and Agriculture Sector Due to Inability to Construct a

Large Multipurpose Dam
Unfortunately mega multipurpose large dams were not constructed after
Tarbela due to political dispute between the provinces impacting the economy
of Pakistan appreciably. It was planned that a mega dam project would be
necessary to be constructed after every decade.
A clear indication of need for building new dams for the economy of
country was felt in 1994-1996 in the form of power shortages and scarcity in
water for irrigation has been experienced. At that time the government had to
opt an expensive option of installing Independent Power Projects (IPPs). The
operating cost structure was transformed by increasing purchases of power
from IPPs.
 The share of hydropower generation (with its low operating cost)
declined from 47% to 29%; between 1997 to 2001 (Figure 8) in the absence of
the proposed dam ([Link], 2005) construction.

Figure 9: Energy generation by WAPDA and Imports (IPPs) ([Link] : 2005)

If the large multipurpose dams were built as per planned schedule or if

only one dam of the capacity of Tarbela was added to the system the hydel
share instead of decreasing from 47% to 29% from 1997 to 2001 would have
been maintained about half the share of total generating capacity. It would have
resulted in stabilizing in electricity tariffs due to less operating costs of hydel
power generation. Moreover dependence on IPP,s would have been more than
50% (2000 MW instead of present figure of more than 5000 MW).
Storage capacity of existing dams in Pakistan depleting at the rate of
0.18 BCM per year (Haq : 2005) leading to storage loss of 5 BCM to date
which accounts for about 20% storage loss for irrigation. Furthermore with
average annual increase in population of about 3 million, additional water
resources of 0.62 BCM are required to sustain and extend irrigation network of
remaining area to meet the food requirements of the country. Unfortunately
instead of an increase in the irrigation network a deficiency of irrigation water
for the existing system especially in late and early Kharif and Rabi (October to
March) has been experienced in the absence of mega multipurpose dam.

Conclusions

The operation of Mangla and Tarbela dams from their commissioning to

2006, as compared to pre-reservoirs period of 1960-67, reveals:
i. Cumulative incremental irrigation water benefits over the period of 1967-
2006 were 2.6 billion US $ due to regulation of these big storage dams.
ii. Withdrawals of IBIS increased by about 20 percent in the low-flow periods
of early Kharif i-e April and May in Rabi from October to March and late
Kharif i-e September, which ensuring regular water supply throughout the
year in this semi arid, agriculture based economy.
iii. Hydropower contribution from these dams from 1967 to 2006 aggregated to
478 billion KWh. Correspondingly estimated benefits were 6.8 billion US$
which saved 119 million tons of furnace oil resulting in saving of foreign
exchange of 13.5 billion US$.
iv. Electricity benefit, which is by product of dam operations, is 3 times the
direct irrigation benefits and in present era plays a vital role when the
furnace oil prices are at their peak i-e 120 US$ a barrel.
v. Combined impact of above two factors was a substantial contribution to
sustainable economic growth of Pakistan.
vi. These dams regulation ensures minimum flows as and when required
necessary to avoid saltwater intrusion from the sea in low line areas during
low flow season.

Recommendations

The benefits gained from existing mega multipurpose dams and the
adverse impact on power and irrigation sector of Pakistan due to failure of
constructing a mega multipurpose dam in the last 4 decades, clearly
demonstrates that dams ensure essential irrigation water supplies for food
security and provide energy security by providing affordable electric energy for
agriculture, industrial and domestic sectors necessary for sustainable economic
growth of the country. The development of dams for proper management of
river waters can only improve economic viability, preserve ecosystem and
enhance social justice of the country in the coming years. Availability of
inexpensive electricity and required irrigation waters are the key factors for
improvement in living standard of common man. Therefore immediate
construction of mega multipurpose dams is imperative. The benefits gained
from existing Tarbela and Mangla Dam Projects reinforce this finding.

Acknowledgement

Mr. Muhammad Afzal Chief Engineer (Retd.) , WAPDA, Lahore Pakistan

presently working as Chief Hydrologist of NDC for his help, guidance and
access to data developed by him for low flow studies benefits due to dams for
this paper.
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