The Ministry of Economic Affairs has officially dismissed reports circulating on social media suggesting the government intends to scrap the Diamer Basha Dam project. Officials confirmed Wednesday that construction remains a top priority, labeling claims of project abandonment as “baseless and misleading.”
The rumors gained traction following recent discussions regarding fiscal tightening and the government’s efforts to restructure public sector development projects. Critics had speculated that the multi-billion dollar dam—a cornerstone of Pakistan’s long-term energy and water security strategy—was on the chopping block due to funding constraints.
“There is no truth to these reports,” a ministry spokesperson told reporters. “The project is moving forward as planned. Financial commitments are intact, and work on the site continues.”
The Diamer Basha Dam, located on the Indus River between Gilgit-Baltistan and Khyber Pakhtunkhwa, is designed to generate 4,500 megawatts of electricity and store over 8 million acre-feet of water. Its completion is viewed by planners as an essential hedge against the country’s looming water crisis and a vital step toward reducing reliance on expensive imported fuels.
Despite the ministry’s reassurance, the project has faced significant hurdles since its inception. Land acquisition disputes, environmental assessments, and the sheer scale of the engineering feat have led to repeated delays. Current project timelines estimate completion by 2028, though independent analysts have frequently questioned whether that target is realistic given the pace of funding disbursement.
For now, the government is signaling that the dam remains insulated from the broader austerity measures currently affecting other state-led infrastructure initiatives. Whether the project can maintain its momentum without further budget adjustments remains the primary concern for stakeholders watching the site.
