INP-WealthPk

Flat water-rate system replaces crop-specific abiana in Punjab

July 03, 2026

By Muhammad Luqman

The Punjab government has introduced a flat water-rate (abiana) system for winter (Rabi) and summer (Kharif) crops, replacing the previous crop-specific water charges to simplify assessment, improve revenue collection and curb crop misdeclaration.

According to a notification issued by the Irrigation Department on June 24 with the approval of the Punjab governor, the new water rates have been fixed at Rs1,650 per acre for the Kharif season and Rs850 per acre for the Rabi season. The rates for sanctioned orchard supplies and state-owned lift irrigation have been set at Rs2,000 and Rs2,250 per acre per annum, respectively.

According to a spokesman for the Punjab Irrigation Department, the revised schedule of water rates has come into force with immediate effect.

"The flat-rate system will help both farmers and revenue collectors calculate and assess dues more easily while discouraging the misdeclaration of crops," he told Wealth Pakistan.

The spokesman said there had been instances where growers falsely declared crops as fodder instead of water-intensive crops such as sugarcane or rice to evade abiana payments. He expressed hope that the new system would ensure a fairer and more transparent mechanism under which growers of different crops pay water charges more equitably.

The spokesman said the reform was also intended to improve cost recovery, noting that annual expenditures on the operation and maintenance of Punjab's irrigation system far exceeded the revenue collected through water charges.

The new policy replaces the crop-specific water-rate structure introduced in 2023, under which water-intensive crops attracted higher charges than relatively less water-consuming crops.

Under the previous system, Kharif rates included rice (Rs2,000 per acre), sugarcane (Rs1,600), vegetables (Rs1,200), maize (Rs1,200), cotton (Rs1,000), orchards (Rs1,000), fodder (Rs400), and oilseeds and other crops (no charge).

For Rabi crops, the previous rates were vegetables (Rs1,200 per acre), maize (Rs1,200), wheat (Rs400), pulses (Rs400), fodder (Rs400), oilseeds (Rs400), and gram (Rs200).

Despite the government's justification, the new policy has drawn reservations from farmer organizations, which fear it could disproportionately affect growers cultivating low-value crops.

"Even small farmers cultivating low-value crops will have to pay the same water rate as growers of major food and cash crops. This is unjust," said Khalid Mehmood Khokhar, Chairman of Pakistan Kissan Ittehad (PKI).

Talking to Wealth Pakistan, he said the Punjab government's decision was likely to increase the hardships faced by farmers.

"The water rate has increased manifold over the last decade, while crop prices have not risen proportionately," Khokhar said.

He urged the government to withdraw the flat-rate system and restore the previous crop-specific structure.

Ebadur Rehman Khan, Director of Farmers Associates Pakistan (FAP), said the abiana system had been changed without taking stakeholders into confidence.

"The government should not focus solely on increasing revenue. It must also ensure that food security is not adversely affected by the difficulties faced by farmers," he told Wealth Pakistan.

Rehman acknowledged that there had been cases of crop misdeclaration by growers in collusion with patwaris (revenue officials).

However, he argued that instead of introducing a flat-rate system, the government should have strengthened transparency and accountability in revenue collection by addressing corruption and improving oversight within the revenue administration.

He maintained that improving governance in the existing collection mechanism would have been a more effective way to curb revenue leakages without placing an additional financial burden on farmers.

Credit: INP-WealthPk