ll Pakistan’s major cities face a silent emergency. Officials have been warning that it may soon roar into a full blown crisis. Dry taps in Karachi, sinking aquifers in Lahore, unpredictable water supply in Islamabad and collapse of Quetta’s ground water network speak of the same significant fact: Pakistan’s urban water systems are challenged.

Tehran’s water emergency holds both warning and lessons for Pakistan. Extreme drought and mismanagement have pushed the Iranian capital to the brink. Given its fast urbanisation and climate stress, unless it acts quickly, Pakistan could end up facing a similar disaster.

The question its policymakers face is: can public-private partnerships (PPP) rebuild water security quickly enough to avoid a Tehran-level breakdown?

A number of Pakistani cities are growing at a fast speed as millions of people migrate to urban centers in search of jobs, education and security. The water supply situation is stark:

n about 40 percent of piped water is lost before reaching the consumers;

n over half of the urban households lack a regular daily supply;

n ground water level is falling at an alarming rate in major cities;

n Karachi’s distribution networks collapse with every weather event.

Meanwhile, climate change has brought us hotter summers, erratic rains and dwindling river flows. Reliable river flows can no longer be assumed.

Tehran’s case

Tehran’s experience is a sobering case study in water supply infrastructure development that neglects rational water management principles. Poor urbanisation planning, wasteful farming and constant over pumping have pushed underground water to low levels. Experts warn that with anything less than drastic reform, the Iranian capital will likely suffer irreversible water collapse.

For urban planners in Pakistan, Tehran is more than a cautionary tale, it’s a reflection of their own situation. The same vulnerabilities exist here:

n overreliance on groundwater;

n reluctance to raise tariffs;

n fragmented governance;

n slow infrastructure renewal;

n and the belief that crisis has yet to hit us.

Public-private partnerships

With budgets stretched thin and utilities close to bankruptcy, the leading proposition for turning the tide is public-private partnerships (PPP). PPPs enable governments and private companies to share responsibility for project finance, construction and operation. In an inherently capital-heavy sector necessitating consistent technical discipline, this model appears tailor-made for such needs.

Its proponents argue that PPPs can deliver what state-run utilities have failed to provide:

n investment for treatment plants, transmission lines, and sewerage networks;

n operational efficiency: cutting leaks and increasing supply hours;

n modern metering and billing to replace manual, error-prone systems;

n accountability through performance-linked contracts.

Senior water-sector consultants in Lahore say that without private participation, the scale of Pakistan’s urban water problems is unmanageable. The government alone cannot finance the lifeline.

Where PPPs can deliver

Experts point out several areas where private partners can contribute to rapid improvements:

n Leak repair and loss reduction: Some of Pakistan’s biggest cities lose nearly half their water to leakage and theft. Private contractors, incentivised through performance bonuses, can dramatically reduce these losses within two to three years effectively creating “new water” without expanding supply sources.

n Universal metering: Shortage of installed meters in many cities makes billing arbitrary and wasteful. PPPs can roll out universal metering, enabling fair tariffs and discouraging overuse.

Tehran’s experience highlights stark lessons. Iran made a huge investment in supply side projects including dams, canal and diversion schemes but did not fix its governance, metering and pricing system. The demand ballooned just as supply stagnated. 

n Treatment plants: Private operators can build and operate desalination plants in coastal cities, expand treatment of wastewater and upgrade filtration plants in areas where stalled public projects have been the norm.

n Modernisation of billing systems: Digital billing, automated leak detection and smart pressure management are standard for private operators. These are badly needed in Pakistan’s outdated utilities.

Wastewater recycling: PPP can accelerate recycling infrastructure to irrigate urban greens, recharge aquifers and supply industries.

Where PPPs fail

Water PPPs around the world collapse when governments rush to project execution without safeguards. The pitfalls may include:

n sudden tariff hikes leading to public protest;

n opaque contracts fuelling corruption allegations;

n misaligned incentives between operators and regulators;

n and political interference undermining technical decisions.

Tehran’s experience is instructive. Iran made huge investments in supply side projects including dams, canals and diversion schemes but did not fix its governance, metering and pricing system. The demand ballooned just as supply stagnated. The message is loud and clear. More pipelines alone cannot save us if governance is leaking like bad pipelines. With lax governance PPPs are liable to fail spectacularly.

PPP roadblocks

PPP execution can be hindered by the following obstacles:

n Weak regulation: Water utilities lean towards relatively little regulatory oversight. Where independent regulation is lacking, private operators may not have clarity for long-term investment.

n Tariff politics: No government wants to raise the cost of water even when increases are sorely needed. PPPs cannot operate without predictable revenue streams.

n Institutional fragmentation: Institutions in federal ministries, provincial department, development authorities and municipal utilities all tend to claim authority. This can lead to divided authority for overlapping mandates causing bureaucratic paralysis.

n Public distrust: Private involvement in essential services is always viewed with suspicion. This sentiment needs to be handled in a transparent manner otherwise it will derail the process.

Smart PPP

The PPP approach taken should be gradual and well-structured, suggested framework can be:

n Begin with management and performance contracts: Before handing over major assets, private firms can be contracted for leak repairs, metering drives and billing modernisation. Such contracts can become trust-building exercises that show results.

n Lifeline tariffs: No PPP should go forward without assured affordable water for the poor. Targeted subsidies can avert backlash.

n Make all contracts public and establish clear standards for services: The best antidote to mistrust is transparency. Publicly accessible contracts and independent monitoring can assure accountability.

n Coordinate water use: The oversight by Tehran was isolating urban planning from larger basin management. This must be avoided by properly integrating water, agriculture and climate policy.

n Climate resilient investment: A resilient PPP framework is essential. It must include rainwater harvesting, flood water capture, recharge wells and recycling.

A narrow window

Pakistan is currently at a critical juncture with urbanisation peaking and water table sinking. Much of its water infrastructure is aging into obsolescence. Tehran’s struggle is a warning from the future Pakistan can still avoid by acting decisively.

Public-private partnerships can help but have to be handled with honesty, oversight and a sense of fairness towards everyone. The faucets are open. The window is shrinking. What Pakistan does next and how fast, will determine its future.

The writer, an independent consultant on sustainable public private partnership projects, holds a PhD degree on the subject. He can be reached at [email protected]