Water dispute between Pakistan and India

Water has been the cause of war on several occasions in history. In 1962, negotiations between Brazil and Paraguay over the development of Parana River region where interrupted when the former invaded the area and to control of the Guaira Falls site. Brazil took five years to withdraw its troops after an agreement with Paraguay to re-examine the development of the region was reached.
Water is the sensitive issue and if India continues to deny Pakistan to its share, it can lead to war between the two countries. The talk of a war with India over water is an alarming turn in the conflict debate but is not something new. Water has become the latest cause to stoke tensions between India and Pakistan; the world may be perilously close to its first water war.
Water is linked to the crises of climate change energy and food supplies and prices, and troubled financial markets.
The first attempt to use water as a military tool was made in 1503 when Leonardo da Vinci and Machiavelli planned to divert Amo River away from Pisa during the conflicts between Paris and Florence.
In early 2009, Pakistan was seen being on the drink of a water disaster, as the availability of the water which was 5000 cubic meter per capita 60 years ago has declined to 1,200 cubic meters. By 2020, it may fall to about 00 cubic meters per capita. In recent weeks water storage has worsened from 30 to 40 per sent because of the drought that may reduce the Rabi crops produce by 20 per cent.
The first phase of Baghlihar dam, a 450 MW hydroelectric power project initialed in the 1990s, was completed on October 10, 2008. India has blocked Pakistan’s water supply from Chenab River and it may increase the lead to war between two countries. If Pakistan does not show upright then Pakistan can become desert within the next 10 to 15 years.
Pakistan has objected to the design of the Kishanganga project for not being in line with the provisions of the Indus Water Treaty as it diverts the water of Jhelum River and there could be 30 per cent water shortage for Rabi crop season. India has almost completed a 22-kilometer long tunnel to divert Kishanganga waters to Wullar Lake in India held Jammu and Kashmir. It will reduce water levels downstream in the plains of Punjab province threatening irrigation and power projects. India attempt to use water as a geo-strategic tool is in contravention to the Indus treaty. Under the treaty, India has been allotted exclusive control over the waters of the eastern rivers which are the Rivi, the Beas and the Sutlej. Pakistan controls the water of the three western rivers- the Indus, the Jhelum and the Chenab. The base-source of water of all the rivers flows from the Indian side of Kashmir.

Driving on Air

As concerns for the environmental continues to grow, many industries the world over have even working hard to develop products that are environment friendly, including the automobile industry.

From solar to hydrogen to electric, many innovative ways have bee employed to power vehicles with varying results. One such concept is the use of air as a fuel substitute.

Developed by India’s Tata Group, in collaboration with the French-based firm Moteur Development International, (MDI), the new technology is quite simple in its operation.

Unlike conventional engine cycles that depend on the combustion of hydrocarbon fuels, this engine that depends on the expansion of compressed air to move the pistons, resulting in a cleaner and quieter engine that expels nothing but very cold air without any traces of greenhouse gases. The compressed air used is stored in a carbon-fiber tank. Currently, two versions of this technology are on offer.

1-     Single energy compressed air plus fuel engines, which use only compresses air.

2-     Dual energy compressed air plus fuel engines, which may switch to fuel mode if the air runs out.

Two models of the air car are available; the MiniCAT which seats three people and the CityCAT, which has a capacity to seat six people.

In all other respects, both models are similar in that they can be bought either with the single compresses air or the dual energy version of the engine. Both versions can travel between 200 and 300 kilometers on one fill-up.

And when it cones to refilling, it takes about three minutes at a purpose built station.

The air is set to make its Unites States debut sometime this year.

National Saving Bonds (NSBs)

The Director General of Central Directorate of National Saving (CDNS) has introduced three-years, five-years and ten-years National Saving Bonds (NSBs) with coupon rates of 12.50, 12.55, and 12.60 per cent respectively. The minimum amount of investment is Rs20, 000 with no limit in maximum amount. These bonds can be bought from all National Saving Centers up to January 25. On January 29, the CDNS would allot the bonds and then CDC would process them till February 25, following which, investors can buy these bonds from the country’s all the three stock exchanges. The first ever listed and tradable NSB last week marked the beginning of new era in domestic debt management.

Under the rules individuals, mutual funds, provident/pension/ gratuity funds or trusts can invest in the new bonds. Banks and corporates cannot.

Under the rules those investing in NSBs must have an operational account or sub-account with CDC. NSBs are open-ended instrument of investment and as such there is no specific size of the issue. The profit n NSBs is payable every six months and liable to income tax but it is exempt from compulsory deduction of Zakat. Unlike other instruments of NSS, the new bonds are not redeemable before maturity.

Since banks are not allowed to invest in the new bonds it would help the government in avoiding a buildup in its borrowing from banks and would also compel banks to improve their rate of return on deposits. And as corporates are not eligible to invest in the new bonds, there is no chance for them to borrow money from banks invests in these bonds.

Bank employee’s funds are, however eligible to invest in NSBs and these funds would hopefully make some investment in the new bonds. Pension/provident/gratuity funds of state-run institutions in particular and those of corporate in general may also part of their funds into the zero-risk NSBs that also offer reasonable rates of return.

Since these bonds are listed and tradable on the three stocks exchanges, which means the investors would also have the opportunity to earn capital gain. But at the same time, chances of capital loss would be there and as such loss would be there and such investment in these bonds would require some-expertise unlike in case of NSS.

At the time passes eligible investor becomes familiar with these bonds, the government would be able to generate enough financial resources fro domestic market and domestic savings would grow. In recent years, massive government borrowings from the SBP resulted in unmanageable inflationary pressure. It’s borrowing from commercial banks also fuelled inflationary besides crowding out the private sector’s credit requirements.