POLITICS & POLICY MAKING

Historic Claim: KP Demands Rs 64.6 Billion from Punjab for Water Usage Since 1947

The KP government has officially demanded Rs 64.62 billion from Punjab as payment for water arrears dating back to 1947. The claim involves the daily supply of 500,000 gallons of water from KP’s Galiyat region to Murree over the last 79 years. Following a provincial assembly report, KP is now seeking full compensation for the usage of its natural resources, marking a major escalation in inter-provincial financial disputes
2026-04-27
Historic Claim: KP Demands Rs 64.6 Billion from Punjab for Water Usage Since 1947

The Core of the Dispute

The KP government has sent formal letters to both the Federal and Punjab governments regarding the water supply from Galiyat to Murree. The administration claims that since the independence of Pakistan in 1947, Punjab has been drawing 500,000 gallons of water daily from KP's natural springs without any formal agreement, financial compensation, or legal authorization.

The Key Demands

The KP government, through the Galiyat Development Authority (GDA), has laid out several strict conditions:

  • Stop Unauthorized Construction: KP has demanded an immediate halt to the construction of a 2-million-gallon water tank in Donga Gali, which was being built by the Murree Water Board without KP's permission.

  • Acknowledge Ownership: The Federal Ministry of Inter-Provincial Coordination has been asked to step in and ensure that KP’s rights over all springs, waterfalls, and water reservoirs in the region are legally recognized.

  • Immediate Water Sharing: Until a final deal is reached, KP wants 250,000 gallons (half of the current supply) diverted back to meet the local water crisis in Galiyat.

  • Payment at Market Rates: For the remaining half supplied to Murree, KP demands payment at current market rates, with all arrears cleared within two years.

Financial Stance

KP's Advisor on Finance, Muzzammil Aslam, stated that Punjab is effectively a "defaulter" of nearly Rs 65 billion. He emphasized that while the infrastructure was built during the British era, Punjab cannot continue to use KP’s natural resources for free, especially when Galiyat itself is facing a water shortage.