An Auditor General report reveals severe progress lags at Pakistan's Diamer-Bhasha Dam. For fiscal year 2024-25, physical progress stood at 19.95 percent against a target of 57.78 percent, despite financial progress reaching 39.67 percent. Additionally, land acquisition expenses hit Rs 151 billion, exceeding the revised budget of Rs 149 billion.
Uncertainty surrounds the project's power-generation component, which demands Rs 1.424 trillion in future contracts. Reports of cancelling power generation to keep the site purely for water storage were dismissed as fake news by Pakistan's Power Division. However, internal memos warn that delaying key waterway structures until after reservoir filling poses high financial and operational risks.
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Overall financial exposure across three major projects—Diamer-Bhasha, Dasu, and Neelum Jhelum—has escalated to Rs 3.9 trillion due to design changes, delays, and operational issues.
