PEPCO's announcement of the new loadshedding schedule of up to 10 hours in both rural and urban areas proves that the country's power and energy crisis is now gaining horrific proportions. The alarming thing is that the water in the country's major reservoirs, including Tarbela dam, has touched dead level. This would deal a serious blow not only to the agriculture and economy of the country, but would also bring down the hydro-electric production capacity. What is worse, reports indicating a shortage of furnace oil also evokes concern as it would worsen the crisis. At present the country is facing a shortfall of 2500MW and keeping in view the way the authorities are expected to handle things, there is not much hope for improvement. So far as agriculture goes, the confirmation by the government that it had stored water for the Kharif season, which would be released later on, is a welcome development but the threats to the industrial sector are there. Last year, hundreds of factories throughout the country had to be shut down on account of power outages, which left thousands jobless. People had to take to the streets because of persistent blackouts. It remains to be seen how the government would tackle the issue this summer. As the energy crisis owes much to the declining levels in reservoirs, effective water management like lining of canals and drip irrigation would help. A report by World Bank reveals the whole situation. It ranks Pakistan among the 17 countries facing acute water shortage with fears that its reservoirs would drastically decrease in level by 2025. Though Prime Minister Yousuf Raza Gilani has taken notice of the situation and has urged the Federal Minister for Water and Power, Raja Parvez Ashraf, to do the needful in this regard, the truth is that efforts on a war footing are required. The need to build large reservoirs had not been more pronounced. A good start would be going ahead with the construction of Kalabagh dam without any delay.