The results already achieved in this activity from 2006-2010 include:
Environmental conditions in Nawanshehr have significantly improved as direct consequence of the
watershed improvement activities. Capacity and performance of local administration has significantly
improved to better manage the natural resources and infrastructure.
Due to its successes in Abbottabad, the concept of EFR has been integrated in the ‘Poverty
Reduction Strategy Paper II’ being finalized by the Government of Pakistan.
The broad engagement and active involvement of local institutions, administration, communities
including children and commercial service provision in the capacity building and pilot processes have
established high buy-in and commitment, therefore showing significant changes in environmental
management in Abbottabad.
Improvements of the local governance structures were achieved. Cooperation lays a very important
foundation for adaptability of these structures, processes and activities to future external changes
(including climatic) and demands.
The EFR activity has generated high quality research work that has explicated the applicability of
fiscal measures in Pakistan for resource management, adaptation co-benefits and pro-poor
The activity aimed at demonstrating the feasibility of poverty reduction and environmental
improvement through undertaking a set of environmental fiscal reforms initiatives.
In the drinking water sector 2,700 feet of new water distribution pipes were installed in Nawanshehr
to ensure that sufficient water is supplied to domestic consumers. Thereby, and by planting trees and
maintaining the watershed, short and long-term employment opportunities were created. Capacity of the
Union Council was built to improve water resource management and to ensure access to all consumers. A
progressive block tariff system was then introduced in which consumers pay according to usage;
beneficiaries of ‘Zakat’ and ‘Bait-ul-Maal’ are exempted from any payments
except for nominal monthly fees in order to ensure water access to all segments of the community.
Also, the introduction of fees introduces an incentive to conserve scarce water resources.
Importantly, involvement of women and youth were sought in all aspects of the activity, since often
women are the ones directly using e.g. cooking water. Citizens, in particular children and women,
showed high motivation to manage solid waste for betterment of environment, health hazards and also
to generate revenue.
In the solid waste sector pro-poor fiscal measures have been successfully demonstrated in many forms.
Through community mobilization, five Mohellah Environmental Committees have been established and have
hired their own waste collectors paid through small contributions from all the households. Secondly,
school environmental clubs were established in five schools in Nawanshehr. Children are educated on
recyclable materials and encouraged to bring these to their school once a week. These are sold to
local merchants to generate revenue for the school, which is utilized for betterment of services and
excursions into the natural environment. Thirdly, kitchen gardening practices through composting of
organic waste have been promoted and at least nineteen kitchen gardens established during the
activity duration. This practice was very well received particularly by low income households as it
helps in reducing expenses for purchased vegetables. Fourth, registered waste merchants pay Rs.150
per month to the Town Committee as tax, in return of permission to do business in the area and
creating further income opportunities through paying garbage collectors. The town utilizes the
collected revenue for betterment of services and through registration has better management
oversight. The pilot showed that waste management can directly and significantly improve quality of
life for local residents and reduce long-term environmental pollution.
Overall, the environmental conditions in Nawanshehr town are reported to have significantly improved
because of implementing the pilots in the two sectors. Performance and capacity to better manage the
existing resources and infrastructure have significantly and lastingly been strengthened.
The improved environmental conditions in Nawanshehr have created further demand to introduce
other environmental fiscal measures in the area and also to implement the tested measures at a wider
scale. This shows the high applicability and suitability of simple EFR measures to the
The proposed replicability of this EFR activity targets two main aspects. On the one hand
dissemination of the research work, success factors and recommendations to all tiers of policy,
administration and communities shall widely raise awareness and support decision-making. On the other
hand the feasibility of EFR and the opportunities therein when applied on a larger scale need to be
communicated, in order to achieve lasting development results in which environmental factors, social
participation and economic instruments are involved.
A conducted research study showed that among the urban sample 92% were willing to pay for improved
water services, whereas in rural areas 69% overall were willing to pay. The mean willingness to pay
was estimated at 58 rupees per household per month. Both aspects show high potential for
replicability and upscaling of EFR in the water sector.
Output 1 for upscaling: Achievements and lessons learnt documented:
i. Prepare a lessons learnt document on application of EFR in to adapt to climate change in
water sector in Abbottabad, including beneficiary perspectives;
ii. Prepare policy brief on best practices and recommendations per stakeholder group;
iii. Prepare a video documentary on EFR as viable instrument for adapting to climate
iv. Advice to planning agencies on all levels (federal, provincial, district and urban planning)
regarding the integration and mainstreaming of EFR into planning processes.
Output 2 for upscaling. Effectiveness and efficacy of EFR for adapting to climate change
disseminated, opportunities for up-scaling explored:
i. Networking for opportunities of scaling-up and replication of EFR activities in Pakistan and
ii. Criteria for successful up-scaling (including appropriate pricing, adaptation and mitigation
co-benefits, means of participation, etc.) devised, based on shared experiences during networking
events, to be used to facilitate and improve pro-poor EFR decision-making.
As the activity finished in 2010, no funding is currently available for up-scaling.