THE cost of the Diamer-Bhasha Dam project has escalated from Rs 479 billion to Rs 1,121 billion, registering an increase of Rs642 billion. This more than doubling of the original estimated cost is a matter of serious concern, particularly when Pakistan is facing growing water scarcity and energy shortages. The project has also experienced considerable delays, which have further contributed to the financial burden. While depreciation of the rupee, rising construction material prices, etc., have been cited as reasons for the escalation, prolonged delays have undoubtedly compounded the problem.
The increase in the cost of the Dasu Hydropower Project, from Rs486 billion to Rs1,740 billion, is another example of the financial consequences of delays and economic uncertainties. Such cost escalations place an additional burden on public finances and divert resources that could otherwise be invested in other development projects. For Pakistan, the construction of Diamer-Bhasha and other dams is of immense importance. With a storage capacity of 6.4 million acre-feet, Diamer-Bhasha will significantly enhance the country’s ability to store water, strengthen irrigation supplies and support agricultural production. At a time when climate change, irregular rainfall and recurring floods are posing serious challenges, additional water reservoirs are essential for long-term water security. Pakistan is already facing an alarming water shortage, with per capita water availability having declined sharply over the decades. The situation has become even more challenging in the wake of India’s water-related actions. This makes the development of additional water storage facilities all the more urgent, as Pakistan needs greater capacity to conserve and manage its available water resources. Diamer-Basha and Dasu will also contribute to generating affordable and clean electricity, reducing the country’s dependence on imported fuels and providing relief from the high cost of energy. Hydropower is a sustainable source of electricity and can play a vital role in meeting the country’s growing energy requirements. The priority must be to ensure timely completion of ongoing projects rather than allowing them to suffer further delays. There is a need for effective project management, uninterrupted funding, institutional coordination and strict monitoring to remove implementation bottlenecks. The government must ensure that Diamer-Bhasha Dam and other dams are completed within the stipulated timeframe. Pakistan can no longer afford to delay projects that are vital to its water and energy security.
