Groundwater markets in the Indus Basin Irrigation System, Pakistan

Abstract

The groundwater market has been developing over time and operating on an informal basis in Pakistan, with a loosely defined governance structure. However, an increasing scarcity of surface water - coupled with a greater dependence on groundwater across all sectors (especially the agriculture sector) - has ignited a new debate for operating these markets with a governance structure in place, which can promote efficiency and equity among the water users. This chapter is designed to present a synopsis of the broader discussion to summarize the debate in form of a well-defined matrix - portraying a picture of existing dynamics of the groundwater markets across the Indus Basin Irrigation System (IBIS). The complexities of the IBIS are largely being dealt with in an over-simplified way; which has lead to a deterioration of institutions, infrastructure and resources over time.