ISLAMABAD: Pakistan’s two major hydropower ventures, the Mohmand Dam and Dasu Hydropower Project, have witnessed a massive cost escalation of Rs 1.607 trillion, pushing the combined estimated expenditure from nearly Rs 800 billion to around Rs 2.4 trillion, according to official documents presented in the National Assembly.
The Ministry of Water Resources informed lawmakers that the Mohmand Dam Hydropower Project alone has seen its estimated cost jump sharply from Rs 309.558 billion to Rs 665.743 billion, reflecting an increase of Rs 356.18 billion. Officials noted that the revision is linked to updated project assessments and ongoing approval processes under the Planning Ministry.
The documents further reveal that the original cost estimates were approved under the PC-I framework at the time of contract awarding. However, a revised PC-I carrying the increased financial requirement is currently under review, highlighting continued adjustments in Pakistan’s large scale infrastructure budgeting.
The Dasu Hydropower Project has experienced an even steeper rise, with costs surging from Rs 486.093 billion approved in the 2014 PC-I to Rs 1.737 trillion, marking an unprecedented increase of Rs 1.251 trillion. The National Economic Council approved the second revised PC-I of the project in December 2025, formalizing the updated financial structure.
Alongside construction costs, allocations for local community development have also seen significant upward revisions. For Mohmand Dam, the uplift budget for affected communities has increased from Rs 160 million to Rs 4.5 billion, reflecting a stronger focus on regional rehabilitation and social development.
Similarly, the Dasu project’s community development allocation has been raised dramatically from Rs 7 billion to Rs 57 billion. Officials say these adjustments are aimed at addressing long standing local demands while ensuring smoother project execution in sensitive regions impacted by large scale hydropower construction.
