Water laws in Pakistan: a corporate perspective

Sunday 31 August 2025

Sahar Iqbal

Akhund Forbes, Karachi

sahar.iqbal@akhundforbes.com

Evolution of water laws in Pakistan

From colonial-era laws to contemporary policies targeted at sustainable water management, Pakistan's approach to water governance has undergone a substantial transformation. The nation's increasing awareness of water security, climate resilience and fair resource distribution is reflected in the development of water legislation.

Legal framework governing water resources

Pakistan’s water laws are derived from constitutional provisions, federal and provincial legislation, international treaties and customary practices. The Constitution of Pakistan 1973 allocates legislative authority over water governance, with Article 155 addressing interprovincial water disputes. The Canal and Drainage Act 1873, a colonial-era law, regulates irrigation canals and drainage systems, granting provinces authority over canal-based irrigation.

Moreover, The Water and Power Development Authority (WAPDA) was created by the WAPDA Act of 1958 to develop and oversee water and electricity infrastructure, such as reservoirs and dams. The World Bank mediated the 1960 Indus Waters Treaty, which gives Pakistan rights over the Indus, Jhelum and Chenab rivers and regulates water distribution between India and Pakistan. This treaty has been instrumental in securing Pakistan’s access to its water resources amid regional tensions.

The National Water Policy of 2018 and the Punjab Irrigation and Drainage Authority Act of 1997 are key legislative and policy measures aimed at ensuring the sustainable management of Pakistan’s water resources. The 1997 Act promotes decentralised governance and introduces a modern framework for participatory irrigation management, enhancing the efficiency of water distribution. The Act aims to increase responsibility and optimise water use in agricultural sectors by incorporating farmers and local stakeholders in irrigation management. In order to solve major issues including diminishing water supplies, wasteful use and the effects of climate change, it emphasises the significance of integrated water resource management.

Sovereign rights and transboundary water management

Pakistan has continuously upheld its water rights under international law as a lower riparian state. Pakistan's water security is at risk due to India's unilateral development of upstream hydroelectric projects, which Pakistan has strongly opposed. Pakistan has taken legal disputes, including those over the Kishanganga and Ratle hydroelectric projects, to international arbitration, asserting its rights under the Indus Waters Treaty. Additionally, it is actively engaging with Afghanistan on the Kabul River’s water usage to establish a fair and mutually beneficial water-sharing arrangement, aiming to prevent future conflicts over transboundary resources.

Water conservation and sustainability measures in Pakistan

Large-scale infrastructure projects and legislative actions are essential to Pakistan's water sustainability initiatives, although obstacles like financial limitations and environmental concerns still exist. Important projects like the Diamer-Bhasha and Mohmand Dams are designed to produce hydropower, control river flows and increase water storage capacity. Nevertheless, many programmes encounter difficulties due to economic limitations and relocation concerns.

The Punjab Groundwater Act of 2019 aims to control water use, but over-extraction and weak enforcement persist, while costly irrigation methods face resistance. Tackling financial, technical and regulatory challenges is crucial for water sustainability.

Challenges and the way forward

The future course of action in light of Pakistan’s solid legal and regulatory system involves navigating problems with water management that are caused by both natural and man-made elements. It is undeniable that Pakistan is severely water stressed, with per capita water availability below 1,000 cubic meters. Inefficient irrigation, aging infrastructure and climate change worsen water shortages, increasing flood and drought risks. Hence, a strong and resilient strategy is key to water security.

Cross-border water disputes complicate Pakistan’s reliance on the Indus Basin, making diplomatic efforts under the Indus Waters Treaty crucial for fair distribution. While concerns persist over upstream hydroelectric projects and altered water flows, Pakistan continues to adopt a firm diplomatic and legal approach to safeguarding its water rights, advocating for equitable resource management and effective dispute resolution.

Conclusion

In order to improve the efficient management of its water resources through international legal actions, policy changes and strategic infrastructure investments, Pakistan is bolstering its water security and defending its sovereign rights. By taking these steps, the nation is able to address new issues and guarantee sustainable water supplies for coming generations. For corporations, compliance with these regulations is not only a legal necessity but also a strategic imperative. Strengthening institutional coordination, enhancing regulatory clarity and promoting sustainable water management practices are essential for ensuring long-term economic and environmental sustainability. In this evolving landscape, businesses must proactively align their operations with Pakistan’s water laws to mitigate risks and contribute to sustainable development.