Governments like all institutions are able to do many things at once. Connecting their water problems to the issues you list is essentially a non sequitur absent specific evidence of either/or policy choices.
Even without that factor, Attention does matter. Governments can do multiple things, but in more dictatorial regimes, doing things well often require prioritization at the top, and there is a limited number of things the top can prioritize. Its one of the main failings of dictatorships in general: the top is afraid to appoint too competent middle management lest they rise up, so everything becomes very top down managed.
Additionally some of the issues causing this seem to be related to corruption in their military, like diverting water in unsustainable ways to support farming projects that have ties to people well connected to irgc. (To be fair, i dont know how true that is, i dont have a good source for that)