Pakistan's ambitious dam construction program, which includes the Diamer-Bhasha and Mohmand dams, is encountering significant financial and political obstacles that could delay critical water and energy infrastructure projects. The government has acknowledged that securing adequate funding for these multi-billion-dollar initiatives remains a major challenge, while inter-provincial disagreements over water sharing and project locations continue to stall progress.
Financial Shortfalls Threaten Timelines
The Diamer-Bhasha Dam, with an estimated cost of over $14 billion, is facing a funding gap of nearly $5 billion. According to the Water and Power Development Authority (WAPDA), the project requires $1.5 billion annually to stay on track, but current allocations from the federal budget and international lenders fall short. The Mohmand Dam, costing around $2.5 billion, also faces funding delays, with only 30% of the required amount secured so far. WAPDA officials have warned that without immediate financial backing, completion dates will slip, exacerbating Pakistan's water storage capacity, which currently stands at just 30 days—far below the 120-day benchmark recommended for arid countries.
Political Disputes Stall Progress
Beyond finances, political tensions between provinces are hindering dam construction. The Sindh government has opposed the Diamer-Bhasha Dam, arguing that it will reduce water flows downstream and damage the Indus delta. In a recent statement, Sindh Irrigation Minister Jam Khan Shoro said, "We cannot support any project that threatens the livelihoods of millions in the lower riparian areas." In contrast, Khyber Pakhtunkhwa and Punjab have pushed for rapid construction, citing urgent needs for irrigation and hydropower. These disputes have delayed the signing of the Water Apportionment Accord, which is needed to allocate water from new reservoirs.
Impact on Energy Security
The delays also threaten Pakistan's renewable energy targets. The Diamer-Bhasha Dam alone is designed to generate 4,500 megawatts of hydropower, while Mohmand Dam will add 800 megawatts. Together, they could reduce the country's reliance on expensive imported fuels and lower electricity costs. However, the current shortfall in hydropower generation has forced the government to rely on thermal plants, contributing to rising power tariffs. Experts estimate that every year of delay costs the national economy approximately $1.2 billion in lost agricultural output and energy savings.
International Lenders and Climate Concerns
Pakistan has sought funding from the World Bank, Asian Development Bank, and China, but these institutions have raised environmental and social concerns. The World Bank, for instance, has called for a comprehensive study on the dams' impact on downstream ecosystems and communities. Additionally, climate change projections indicate reduced glacial melt in the coming decades, which could lower river flows and affect dam performance. A 2023 report by the International Union for Conservation of Nature (IUCN) warned that Pakistan's water resources could decline by 30% by 2050, making the efficient use of storage even more critical.
Way Forward
To overcome these hurdles, the government is considering a mix of public-private partnerships and a new water surcharge on consumers. The Ministry of Water Resources has also proposed a national consensus dialogue to resolve provincial disputes. As Federal Minister for Water Resources Syed Khurshid Shah stated, "We must prioritize national interest over regional politics. The future of our agriculture and energy depends on building these dams now." Without swift action, Pakistan risks worsening water scarcity and energy crises that could undermine economic growth and stability.
