The Indus River System Authority (IRSA) believes that Pakistan should enter into an agreement with Afghanistan on Kabul River as it did with India on six rivers of post-47 India.
Pakistan and India are now sharing rivers’ waters under Indus Basin Treaty.
Also, the authority is of the considered opinion that Pakistan should construct, on war footing basis, a huge storage upcountry so that the agriculture is saved from the fallout of possible scarcity of water in result of climate change.
The authors of the paper which also include Fatehullah Gandapor have reached a conclusion that the federal government should move ahead with Katzara Dam (in Skardu) and drop Kala Bag dam as it can not be tipped as consensus project anymore.  
The IRSA has compiled a comprehensive set of recommendations which has reached Islamabad for urgent consideration and the experts at IRSA are reported to have stressed upon the federal government that Pakistan should secure its share of water from Kabul as Afghanistan is planning to construct as many as 12 dams on Kabul which ultimately will reduce supplies of water downstream. 
Pakistan’s system receives around 26 MAF from Kabul and such a supply may bear a sharp decline, if Afghanistan succeeded to complete its water storage projects, funded the US and India. 
The IRSA’s concerns as regards water scarcity do not end here. The authority anticipates tough years ahead when Pakistan may turn a water deficient country. 
In order to meet the challenge, the authority recommended that the government should first go ahead with Katzara Dam.
It merits to mention that that the Technical Committee headed by senior expert A.N.G Abbasi had also recommended such a dam in is final report submitted to Gen. Musharraf. It considered the world's largest dam having a potential of 35 MAF storage capacity and 15,000 mw of hydel power.
WAPDA documents claim the estimated life of the dam would be around 1000 years. 
The dam site is located about 3 km upstream of Ayub Bridge on the Indus, about 16 km down stream of Skardu town in Baltistan. The darn site was first identified by a Wapda-Harza team during 1960. 
The recommendations of the IRSA apart, the proposed dam lives with a number of hurdles such as difficult terrain and weather hardships.  
The road leading to site remains closed for 6 to 7 months of the year due to winter snow and resulting heavy damages due to snow melt runoff. The initial cost put forth in 1966 stood at $509 if the reservoir was built for 502 MAF. 
The most controversial part of the project is that it may inundate Skurdu Valley. It causes anger in the valley and there is tough résistance there. 
The positive side is that it has a potential for power generation but the extension of transmission line all the way to the load centres of Pakistan through very difficult terrain and would pose serious construction and O&M problems.

The project is included in phase – II of WAPDA's Vision 2025 program for preliminary studies. Under this program pre-feasibility study of this dam will be carried out by WAPDA in a period of 30 months at a cost of Rs 70 million.
Interestingly enough, the authority in its report goes on to recommend that the government should construct a barrage on the site of Kala Bag Dam for stopping just 3 MAF in case of surplus water upstream in the river. 
Also, the government should construct a dam near Chitral to store water of Panj Khora River. Manzoor Shaikh