Economic Valuation of Qurumber Park
Economic Valuation of Qurumber Park
1 MAY 2023
1
Department of Development Studies, Karakoram International University, Gilgit-Baltistan,
Pakistan
2
Department of Plant Sciences, Karakoram International University, Gilgit-Baltistan, Pakistan
3
WWF Pakistan, Gilgit-Baltistan, Pakistan
4
WWF Gilgit Office, Pakistan
ABSTRACT
Communities in high-altitude regions are particularly dependent on ecosystem services for their survival.
Understanding the economic value of ecosystem services is crucial for sustainable management of mountain
ecosystems and associated policy development. This study estimated the economic value of selected ecosystem
services provided by the Qurumber National Park (QNP) using data collected from 393 local households. This value was
estimated as PKR 738.37 million (US$ 4.28 million1) per year, corresponding to PKR 615,308 (US$ 35691) per
household per year. Provisioning services contributed PKR 706.828 million (US$ 4.01 million1) per year which
constituted 96 per cent of the ecosystem service value. This study argues that given the lack of economic opportunities
and high poverty rate in the valley communities, pressure on the park’s resources is increasing, resulting in depletion
of important ecosystem services in the park, thereby posing a key challenge for conservation efforts. This study
recommends a need to better recognise the ecosystem services provided by the park in policy decisions. An efficient
institutional mechanism should be developed to provide alternative livelihood options for the local community to
minimise pressure on the park’s natural resources. The findings of this study serve as baseline information for both
researchers and policymakers to maintain this vitally important mountain national park.
Key words: high altitude park, value assessment, local development, conservation, livelihoods
can enable managers to assess potential trade-offs among identification and design of funding mechanisms and
ecosystem services (Shedayi et al., 2022; Schroder et al., the provision of sustainable recreation opportunities to
2016) and identify efficient allocation of the resources tourists (Pisani et al., 2021). However, there is a dearth
associated with protected areas (Pisani et al., 2021). of valuation studies in the context of mountain regions in
Pakistan, even though these regions provide important
Mountain regions in Pakistan contain unique ecosystems
ecosystem services to both mountain and downstream
and species, landscape features such as glaciers, and
communities. In such circumstances, economic
important natural resources such as water, pastures and
valuation of protected areas can be instrumental in
forests. As such, they are a major source of ecosystem
persuading governments to initiate efficient management
services upon which millions of people depend. The
mechanisms for the sustainable flow of ecosystem
mountainous region of Gilgit-Baltistan in northern
services. Mountain ecosystems of Gilgit-Baltistan
Pakistan presents a good example of such endowments
are hot spots for international and domestic tourists,
and dependencies. However, with rapid socioeconomic
development, and climate change, pressure on ecological contributing significantly to the economic value of the
resources is increasing. Developments in the region are cultural ecosystem services of Pakistan (Shedayi et al.,
generating significant economic benefits, but at the same 2022). However, current development activities in the
time contributing to adverse impacts on mountain region, increasing population and climate change pose
ecosystems and biodiversity. Ensuring adequate serious threats to the provision of important mountain
consideration of such environmental impacts is therefore ecosystem services, demanding immediate attention
of increasing importance. In this context, adopting an from policymakers (Shedayi et al., 2016).
environmentally sensitive development perspective has
This paper estimates the economic value of ecosystem
the potential to provide sustainable livelihoods to the
services provided by the Qurumber National Park (QNP)
local community and in the long run conserve natural
in Gilgit-Baltistan and provides an insight into the current
resources and landscapes.
dependency of local communities on the services of the
National parks play a significant role in conservation, and national park. Results of this study will help the park
if they are properly managed can also generate significant authority to devise a better management plan for the
earnings to governments and local communities. The conservation of the protected area’s values. They could
economic valuation of protected areas is currently also assist the Government of Pakistan to assess the
receiving considerable attention from policymakers and economic feasibility of an ecosystem payment mechanism
park managers, as such information can assist with the designed to increase funding for the park and contribute
towards improved environmental conservation efforts. living in the buffer speak the Wakhi language, with the
The findings also serve as a starting point for considering Khowar language also commonly spoken by local people.
the views of local people who directly contribute to the The main source of households’ livelihoods is agro-
management of the park as well as assist with provision pastoralism. Goat and sheep rearing are the dominant
of enhanced recreational opportunities for domestic and practices while a considerable number of households also
international tourists. Furthermore, the findings of this rear cattle and yak. Table 1 indicates the areas of various
study can serve as a baseline for further research into the land class categories in the Qurumber valley and QNP.
value of ecosystem services derived from protected areas These areas were determined from Landsat 8 OLI data of
in remote mountain regions. 2016. It is evident from Table 1 that 51 per cent of the
valley and 66 per cent of the park are covered by snow
METHODS and glaciers which are the sole sources of fresh water
Study area supply for the buffer zone communities. Soil/rocks stood
second in terms of land coverage, accounting for 28 per
Qurumber National Park in Ishkoman, Ghizer District of
cent of the valley and 27 per cent of the park. Grass/
Gilgit-Baltistan, Pakistan was officially established in
shrubs covered 19 per cent of the valley and 7 per cent of
2011 by the Department of Wildlife and Parks, an agency
the park, whereas agricultural land covered only 0.8 per
of the Government of Gilgit-Baltistan, Pakistan (Figure 1).
cent of the valley and 0.06 per cent of the park.
The ecosystems of QNP are mainly high altitude deserts
where annual rainfall rarely exceeds 150 mm. QNP, Across the Gilgit-Baltistan region, less than 2 per cent
which covers an area of 73,800 hectares, is unusual in of the land is under cultivation and in the Qurumber
the sense that the local communities of Qurumber valley valley the figure is even lower, at only 0.77 per cent.
approached the Government of Gilgit-Baltistan urging its As indicated in Table 1, much of the area is covered by
establishment. QNP serves to conserve the vitally snow and glaciers which are the main sources of water
important natural resources of the valley and also for drinking and irrigation. Water is one of the main
provides significant economic and ecological benefits to ecosystem services in QNP, supporting both the domestic
local communities. The Qurumber valley is sub-divided needs of downstream communities and sustaining the
into many small villages and the buffer zone of QNP has productivity of crops. Qurumber valley residents grow
approximately 1,200 households. Most of the communities maize, wheat, potatoes, a variety of vegetables and
fruits such as apple, peach and cherry. These goods are Valuation method
primarily produced for local consumption. Following guidelines in MEA (2015), this study
considered provisioning and regulating services. The
Data collection
provisioning services of the park were evaluated using
Data for this study were collected using a survey of
the current market price method whereas a benefit
households conducted during October and November
transfer method was used in the valuation of regulating
2021 in all villages of the Qurumber valley. Survey
services of the park. Following Sharma et al. (2015) and
design was assisted by a literature review (Din et al.,
Din et al. (2020), the estimation of total provisioning
2020), two focus group discussions and six in-depth
services of the park (TVP) was made using the following
interviews with local residents and members of the
equation:
village welfare organisation, as well as input from
WWF-Pakistan. Thirty respondents provided feedback
on a pilot version of the survey which prompted several
useful amendments. The final survey is given in the
supplementary online material. The survey covered 32 where i represents the various provisioning ecosystem
per cent of the total population in the study area (393 services, HH is the cumulative number of households
households out of 1,200). A survey team was hired living in the buffer zone, and is the annual average
from the local population (who therefore knew the local benefit obtained per household.
language and were aware of the cultural sensitivities of
the region) for final data collection. The survey team was Valuation of provisioning services: crops
given one day of training before the start of the survey. During our discussions with the local communities of
the Qurumber valley, we found that the staple crops are
The household questionnaire, which included closed and wheat, maize, potatoes, vegetables and barley. Based on
open-ended questions, was divided into five sections. the studies of Sharma et al. (2015), Murali et al. (2017)
Questions in the first section related to households’ and Din et al. (2020), the market price method was used
socioeconomic and demographic profiles and the second in estimating the value of these crops:
section contained questions related to perceptions of the
relative importance of ecosystem services provided by Net annual crop income per household
the park. Section three included questions related to the = (crop yield per household × local price of the
types of crops grown by households and the market value crop in kg)
of each crop. Section four contained questions related - input cost of the gross income
to the types and quantities of fruits produced and their
market prices. The final section contained questions Based on the focus group discussions with the local
related to the livestock owned by households and the community, we considered the input cost as 60 per cent
market value of this livestock. of the gross income from crops. The above equation gives
a net annual value of crops per household and this value is
Local community campaigning for protection of QNP natural resources © EJAZ WWF-Pakistan
multiplied by the total number of households (1,200) in Valuation of domestic water consumption
the study area to give the total economic value of the crop. Much of the QNP is covered by snow and glaciers which
are the sole sources of freshwater for the inhabitants
Valuation of provisioning services: fruits
living in the buffer zone of the park. In this study, we used
Through the focus group discussions, we identified the
minimum per capita water consumption (WHO, 2013)
main fruits grown by households in the valley as apples,
and multiplied it by the local price of water (Murali et al.,
apricots, pears, grapes and cherries. Using the market
2017) to estimate the total value of water per household.
price method, the valuation of these fruits was made
using the following equation: Valuation of cultural ecosystem services: trophy
hunting
Net annual fruits income per household
Communities living in the buffer zone of QNP have
= (annual fruit production per household successfully established conservation practices where
× local price of the fruits in kg) - input cost open hunting is not allowed. The valley has a good
population of Himalayan Ibex (Capra sibirica
The input cost of producing these fruits was assumed to hemalayanus) and a trophy hunting programme has
be 30 per cent of the gross value of the fruits. been successfully practised in the region. We collected
data from the conservation organisation of the Qurumber
Valuation of fuel wood
valley regarding revenue generated from the trophy
Qurumber National Park provides fuel wood for the
hunting programme. Annually, an average of four to five
community living in the buffer zone. In the household
permits are granted to hunters, and annually around
survey we asked households to report their annual
PKR 0.7-0.8 million are earned from the trophy hunting
consumption of fuel wood collected from the QNP. This
programmes. This study calculated the net earnings from
turned out to be 40 kg per household. The valuation of
trophy hunting by subtracting the management fee (20
this fuel was then estimated using the following equation:
per cent of the gross income). The net revenues go
Net annual value of fuel wood per household directly to civic development of the valley.
= (annual fuel wood consumed per household Valuation of regulating services: carbon
× local price of the fuel in kg) sequestration
Owing to the prevailing high unemployment rate The carbon sequestration index (CSI) measures the
(observed during the focus group discussions with the potential of vegetation at a particular site to sequester
local community), the opportunity cost of time for labour carbon in comparison to the total emissions at that site.
in the collection of fuel was taken to be zero. If the value of CSI is less than one, then the area is
considered a carbon emitter, whereas if the value of CSI
is greater than one, the site is considered a carbon sequester
(Wahyudi & Afdal, 2019). Din et al. (2020) estimated the provided by the park. Responses were rated for
value of carbon sequestration for QNP using the benefit importance on a scale as indicated in Table 3.
transfer method. They calculated the annual value of
Table 3 shows that 80 per cent of the respondents
carbon sequestration using the following equation:
considered the pastures of QNP to be important in terms
Annual Value of Carbon Sequestration of providing fodder for livestock. The most important
= area under cultivation and grassland provisioning service was water (100%) followed by
× corresponding carbon sequestration index × wildlife (93%) and energy resources (92%). Respondents
rated flood prevention (93%) as the most valued
per unit price of CSI
regulating service, followed by climate regulation (92%),
water regulation (92%) and carbon sequestration (90%).
This study used the carbon sequestration result
Tourism and recreational services were considered
estimated by Din et al. (2020).
important by all respondents with knowledge generation
(94%) also regarded as important by most people.
DATA ANALYSIS AND RESULTS
Villages sampled Economic valuation of provisioning
This study surveyed ten villages in the Qurumber valley services
using the systematic random sampling technique. During Local communities living in the Qurumber valley get
our focus group discussion and personal interviews with direct as well as indirect benefits from QNP. Table 4
the local community, it was established that Qurumber shows the estimated economic value of provisioning
valley has a population of around 1,200 households. ecosystem services of the QNP at both household
In order to obtain a representative sample, we sought and aggregated levels. The total economic value of
responses from 400 households. However, seven the provisioning services of the Qurumber valley was
questionnaires were not properly completed and we estimated to be PKR 706.828 million per year which
thus obtained 393 valid responses, representing 32 per translates into PKR 0.589 million per household per
cent of the total population of the Qurumber valley. The year. Provisioning services contribute approximately
distribution of the sample is shown in Table 2. 96 per cent of the total economic value with the most
important of these being livestock, domestic water use,
Table 2: Sampled villages in Qurumber valley
fuel wood and livestock production.
Village No. of responses Percent
Agriculture products (crops and fruits)
Badswat 40 10.2 The net annual value of crops was estimated to be PKR
Bilhanz 62 15.8 0.0272 million per household per year after deducting
input costs which were assumed to be 60 per cent of their
Borth 11 2.8
gross value. Similarly, the annual net value of fruits was
Lower Gishgish 42 10.7 estimated to be PKR 0.0037 million (PKR 3,700) per
Immit 147 37.4 household per year after subtracting input costs which
were assumed to be 30 per cent of their gross annual
Matramdan 12 3.0
value. The shares of crops and fruits in the total value of
Nowbahar 6 1.5 provisioning services were 4.6 per cent and 0.6 per cent
Shamshabad 18 4.6 respectively (Table 4).
Percentage of responses
PKR 149.52 million per year which translates into PKR million per year, equivalent to PKR 0.2847 million
0.125 million per household per year, with the share of per household per year. Domestic water consumption
livestock in total provisioning services at 21 per cent. was the most significant component of provisioning
ecosystem service value at 48 per cent.
Fuel wood
Households in the buffer zone use wood as an energy Cultural service
source and QNP directly provides much of this fuel wood.
A trophy hunting programme is being successfully
We estimated the total annual value of fuel wood in the
implemented in the Qurumber valley. In 2021 five
valley to be PKR 178.56 million per year which translated
permits were granted for the hunting of Himalayan Ibex,
into 0.1488 million per household per year. The share of
with an average price per animal of approximately PKR
fuel wood in the total value of provisioning services was
150,000. The regional government charges 20 per cent
25 per cent.
of the income as a management fee, with the remaining
Domestic water consumption 80 per cent going directly to the local community
Communities living in the buffer zone of QNP depend conservation organisation. This income is used for
heavily on the water resources originating from the park. various civic purposes in the valley. This study estimated
Three major glaciers are located within the park and that the annual total income earned from trophy hunting
glacier melt is the primary water source for domestic is PKR 0.6 million which translates to PKR 500 per
consumption. The estimated total economic value of household per year.
domestic water consumption in the valley is PKR 341.64
Local community perceptions of QNP Since QNP was mainly established on the demand of the
Local communities in the buffer zone are increasingly local community, the local community foresee many
being accepted as partners in the effort towards potential benefits to offset the costs of QNP. However,
sustainable management of natural resources. Such costs and benefits may vary over time and from person to
community-based conservation is based on the notion person. The establishment of the park has imposed economic
that conservation strategies should include local opportunity costs on the local population in terms of
communities in decision-making, and conservation limiting potential future access to park resources and an
should be of interest to, and conducted by and for inability to increase the area of cultivated land. This issue
local communities, who are then active partners in warrants closer scrutiny, and assessment of the magnitude
protected area management (Zhang et al., 2020). It of such costs is recommended.
follows that conservation based on the local community
Several focus group respondents also highlighted various
achieves its goals by: (i) allowing local communities to
challenges facing the valley. One participant urged action
live in and around the protected area to ensure their
regarding the imprecise delineation of the QNP boundary:
participation in land use management decisions; (ii)
ensuring local community access and use rights over a “We request the forest and wildlife department of
protected area’s natural resources; and (iii) ensuring the Gilgit-Baltistan government to help us in
economic benefits from conservation actions flow to defining the boundaries of the QNP. People from
the local communities (Nilsson et al., 2016). It has the other side (Khyber Pakhtunkhwa side) falsely
been widely accepted and reported that community- claim the ownership of Qurumber Lake despite the
based conservation programmes have multiple benefits fact that historically Qurumber Lake belongs to
for local communities (Bajracharya et al., 2006). Ishkoman valley. Therefore, there is a need for
Decreased poaching and provision of direct economic provincial government level action to be taken.”
ENDNOTES
1
1 PKR = US$0.0058 rate for 1 November 2021
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ABOUT THE AUTHORS
Kumar, P. (2005). Market for Ecosystem Services. Winnipeg, Canada:
Amjad Ali is Assistant Professor in the Department of International Institute for Sustainable Development (IISD).
Development Studies at Karakoram International Millennium Ecosystem Assessment (2005). Ecosystems and Human
University and also a PhD candidate in the Department Well-Being. Washington, DC: Island Press.
Murali, R., Redpath, S. and Mishra, C. (2017). The value of ecosystem
of Economics. His main research areas encompass services in the high altitude Spiti Valley, Indian Trans-Himalaya.
environmental and tourism economics and he has authored Ecosystem Services 28:115–123.
several articles in international peer reviewed journals. Nilsson, D., Baxter, G., Butler, J. and McAlpine, C. (2016). How do
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Arshad Ali Shedayi has a PhD in Ecology from the countries change human behavior? A realist synthesis. Biological
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published research papers in international journals and is
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currently working as an assistant professor in the C. (2021). The economic valuation of ecosystem services
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RESUMEN
Las comunidades de las regiones de gran altitud dependen especialmente de los servicios ecosistémicos para su
supervivencia. Comprender el valor económico de los servicios ecosistémicos es crucial para la gestión sostenible de
los ecosistemas de montaña y para el desarrollo de las políticas correspondientes. de los ecosistemas de montaña y el
desarrollo de políticas asociadas. En este estudio se ha calculado el valor económico de determinados de los
ecosistemas del Parque Nacional de Qurumber (PNQ) a partir de datos recogidos en 393 hogares locales. Este valor se
estimado en 738,37 millones de PKR (4,28 millones de USD1) al año, lo que corresponde a 615.308 PKR (35691 USD)
por hogar y año. hogar al año. Los servicios de aprovisionamiento aportaron 706,828 millones de PKR (4,01 millones
de US$1) al año, lo que constituían el 96% del valor de los servicios ecosistémicos. Este estudio sostiene que, dada la
falta de oportunidades económicas y el alto índice de pobreza de las comunidades del valle, la presión sobre los
recursos del parque está aumentando, lo que se traduce en el agotamiento de importantes servicios ecosistémicos en
el parque, y en la pérdida de biodiversidad. de importantes servicios ecosistémicos en el parque, planteando así un
reto clave para los esfuerzos de conservación. Este estudio recomienda la necesidad de reconocer mejor los servicios
ecosistémicos que presta el parque en las decisiones políticas. Debería desarrollarse un mecanismo institucional
eficaz que ofrezca opciones de subsistencia alternativas a la comunidad local para minimizar la presión sobre los
recursos del parque. minimizar la presión sobre los recursos naturales del parque. Los resultados de este estudio
sirven como información de referencia tanto para tanto para los investigadores como para los responsables políticos,
con el fin de mantener este parque nacional de montaña de vital importancia.
RESUME
Les communautés des régions de haute altitude sont particulièrement dépendantes des services rendus par les
écosystèmes pour leur survie. La compréhension de la valeur économique des services écosystémiques est cruciale
pour la gestion durable des écosystèmes de montagne et pour l'élaboration des politiques correspondantes. des
écosystèmes de montagne et l'élaboration des politiques correspondantes. Cette étude a estimé la valeur économique
de certains services sélectionnés fournis par le parc national de Qurumber (QNP) en utilisant des données collectées
auprès de 393 ménages locaux. Cette valeur a été estimée à 738,37 millions PKR (4,28 millions USD1) par an, ce qui
correspond à 615 308 PKR (35691 USD) par ménage et par an. par ménage et par an. Les services
d'approvisionnement ont contribué à hauteur de 706,828 millions PKR (4,01 millions USD1) par an, ce qui représente
96 % de la valeur de l'écosystème. 96 % de la valeur des services écosystémiques. Cette étude soutient qu'étant donné
le manque d'opportunités économiques et le taux de pauvreté élevé dans les communautés de la vallée, la pression sur
les ressources du parc augmente, ce qui entraîne l'épuisement d'importants services écosystémiques dans le parc.
d'importants services écosystémiques dans le parc, ce qui représente un défi majeur pour les efforts de conservation.
Cette étude recommande de mieux reconnaître les services écosystémiques fournis par le parc dans les décisions
politiques. Un mécanisme institutionnel Un mécanisme institutionnel efficace devrait être développé pour fournir des
moyens de subsistance alternatifs à la communauté locale afin de minimiser la pression sur les ressources du parc.
minimiser la pression sur les ressources naturelles du parc. Les résultats de cette étude servent d'informations de
base pour les chercheurs et les décideurs politiques. les chercheurs et les décideurs politiques afin de préserver ce
parc national de montagne d'une importance vitale.