Zafar Iqbal
The recent session of the National Assembly’s Public Accounts Committee (PAC) has laid bare a disturbing pattern of financial mismanagement, poor planning, and administrative neglect that continues to plague Pakistan’s major hydropower projects. While these projects are positioned as critical pillars for solving the country’s energy crisis, the session exposed just how far the gap is between ambition and implementation.
At the centre of this storm is the Dasu Hydropower Project, a flagship initiative marred by delays, massive cost overruns, and weak oversight. More than a decade since its approval, fundamental prerequisites such as land acquisition and resettlement of affected communities remain unresolved. Blaming the Khyber Pakhtunkhwa government for delays may offer a temporary scapegoat, but it doesn’t absolve federal authorities of their accountability.
According to Planning Division guidelines, no water project should commence without securing land rights. So, the question becomes inescapable: Why was such a massive undertaking greenlit without meeting this basic criterion? This failure reflects not just poor coordination but a complete breakdown of responsible governance.
Initially estimated at Rs486 billion, Dasu was supposed to begin in 2014 and be completed by 2019. However, construction only began in 2020 and is now expected to conclude by 2029. In the process, the projected cost has ballooned to a staggering Rs1.7 trillion, a 240% increase, making it the most expensive hydropower project in Pakistan’s history. Such unchecked escalation not only burdens the national budget but erodes public confidence in state-run development initiatives.
But Dasu is not an isolated case.
The Neelum-Jhelum Hydropower Project (NJHPP), another high-profile venture, has also turned into a cautionary tale. Operational for just a few years, it has remained shut since May 2024 following the collapse of its headrace tunnel. The technical failure of this critical component has rendered the entire facility inoperative, and worse, no timeline has been provided for its repair or reactivation.
A committee was reportedly formed by the prime minister in July 2024 to investigate the structural flaws and assign responsibility. Yet, months later, there is still no clarity on its findings or recommendations. In a country where rolling blackouts and power shortages have real economic and human costs, such bureaucratic delays are inexcusable.
Further compounding these issues is the Diamer-Bhasha Dam, another mega-project currently under development. During the PAC session, it was shockingly revealed that used concrete testing equipment was procured — not just reused, but purchased from the very contractor responsible for conducting safety tests. This presents a glaring conflict of interest and a potentially dangerous compromise of quality assurance standards. If corners are being cut even at this foundational stage, it begs the question: What will the long-term structural integrity of the dam look like?
The problems run deeper than individual projects. Nepra’s 2024 State of the Power Industry report, released in December, highlights systemic inefficiencies that have come to define Pakistan’s energy landscape. The report revealed that six smaller hydropower plants are operating at below 50% of their designed capacity. If small-scale facilities cannot be effectively managed, how can we expect success in mega-projects worth hundreds of billions?
The issue here isn’t just about engineering delays or rising costs. At its core, this is a crisis of governance, accountability, and vision. Pakistan’s water and power leadership — from ministries to executing agencies — appears unequipped to steer these crucial initiatives. There seems to be little learning from past mistakes, with each project repeating the same cycle of rushed approvals, weak feasibility assessments, incomplete groundwork, and no meaningful post-completion oversight.
The financial consequences are devastating. Cost overruns not only drain public coffers but also delay the benefits these projects are meant to deliver, such as affordable electricity, improved water storage, and flood control. Every rupee lost to mismanagement is a rupee not invested in schools, hospitals, or disaster resilience.
Moreover, such persistent failure threatens Pakistan’s credibility with international donors and financiers, many of whom are key stakeholders in hydropower development. How long can the state continue to seek external funding while failing to demonstrate project discipline or ensure return on investment?
It’s time to acknowledge that Pakistan’s hydropower sector is crying out for reform. A complete overhaul is required — not in vision, but in execution. Transparent and technically sound planning must replace political expediency. Accountability must become more than a buzzword. Feasibility studies must be robust, land must be secured, environmental impact assessments completed, and financing plans made airtight before ground is broken, not after.
A culture of impunity must also end. Those responsible for delays, technical failures, and procurement irregularities must face consequences. The PAC must follow up its exposés with enforcement, not just more hearings. Investigative committees must be time-bound and their reports made public. Procurement rules must be updated to eliminate loopholes, and independent third-party audits should be made mandatory.
Finally, the leadership steering Pakistan’s power and water projects must be chosen not based on political patronage or seniority but on technical competence and proven integrity. The stakes are too high to treat these assignments as ceremonial or rotational.
In a nation where load-shedding continues to affect lives and industries, where climate change is pushing water resources to the brink, and where public debt is spiraling, there is no room for complacency or corruption.
The PAC has pulled back the curtain on a deeply flawed system. What happens next will determine whether Pakistan can finally put its hydropower ambitions back on track — or continue repeating the same mistakes at an ever-greater cost.
