The Metropolitan Corporation Islamabad (MCI) has decided to impose a tax of Re2 for the extraction of every litre of water by the mineral water companies. This strategy of the government is linked with the expectation of millions of rupees per day. This revenue will be used in two streams: one will be spent on providing clean drinking water to citizens and the other for water recharging arrangements. The government, particularly the Supreme Court (SC), must be appreciated for levying a tax on mineral water companies because they have generated revenue without any taxation which has impacted the economy. This will certainly create new channels of revenue for the government.

This move should encourage the legislation of all sectors of the economy functioning without taxes. Another possible means of expanding the tax base is finding tax nets within the existing market force. The absence of taxation against the extraction of groundwater in Pakistan has cost the country millions in revenue. It has affected the groundwater ratio of Pakistan along with the growing population and the growing number of illegal housing schemes in the country. Pakistan is one of the countries facing severe water scarcity. The water present is also infected with arsenic. There is a continuous decrease in water reservoirs. The order by the SC to a local company near Katas Raj to refill its pond has left the pond empty again due to the construction of the company nearby.

Along with taxation of the present companies, the government must work towards environment-friendly development plan. A plan for population control along with a database of the housing schemes will enable the government to preserve water sources. In order to ensure the completion of the project, the government must work on feedback channels which will enhance their capacity of conflict resolution.