Abdul Ghani

The government has proposed an allocation of Rs91.55 billion for the Diamer-Bhasha Dam (power generation facility) in the fiscal year 2026-27, according to a document available with Wealth Pakistan.

According to the document, the Diamer Bhasha Dam carries an estimated total cost of Rs1.424 trillion. The project received approval from the Executive Committee of the National Economic Council (ECNEC) on April 6, 2023.

The substantial allocation demand underscores the dam’s central role in strengthening Pakistan’s energy security, expanding clean electricity generation, and improving long-term water storage capacity. Once completed, the project is expected to significantly enhance hydropower output while contributing to flood mitigation and irrigation support.

The allocation request for 2026-27 is significantly higher than that for several other water sector projects being executed by WAPDA, reflecting the priority status accorded to the Diamer Bhasha Dam within the national development framework.

Policy planners view the dam as a cornerstone infrastructure initiative designed to reduce reliance on imported fuels, stabilize electricity supply, and support sustainable economic growth.

The continued financial backing signals the government’s intent to maintain construction momentum amid growing energy demands and climate-related water challenges.

With ECNEC approval already secured and funding allocations moving forward, the Diamer Bhasha Dam remains a flagship project in the country’s hydropower expansion strategy for the upcoming fiscal cycle.

Credit: INP-WealthPk