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Water is inevitable for all human beings and its share is nearly 2/3 in human body. The population of Pakistan crossed 190 million with a growth rate of 1.8%. Per capita water availability is decreased from 5,600 m3 to 1,000 m3.

This situation raised the concern about quantity and quality of water. Drinking water after filtration and mineral addition with reverse osmosis drinking water plants is a better option. At present, mineral water from some leading companies (Nestle, Aquafina, Kinley etc) is available but at high price. Many people cannot afford it. However, water private filtration plants are also working but these are less in numbers even in city area.

The installation of reverse osmosis plants needs high investment. To solve this issue, economists have suggested that Government should provide subsidy for this sector.

Requirement:

Keeping in view the above facts and figures, analyze how this subsidy would affect the consumers and producers.

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Please Discuss here about this GDB.Thanks
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