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Funding crunch delays major dam projects as Indus Waters Treaty remains in abeyance

MM News by MM News
May 14, 2026
Reading Time: 2 mins read

ISLAMABAD: Pakistan’s major water infrastructure projects, including the Dasu, Diamer Bhasha and Mohmand dams, may take decades to complete owing to inadequate funding and rising costs, according to official documents of the Ministry of Water Resources.

Media report quoted documents showing that under the current pace of financial allocations, several projects could face extraordinary delays, with some requiring centuries for completion.

The Dasu Hydropower Project, one of the country’s flagship energy schemes, is projected to be completed in 65 years if funding continues at existing levels. The project requires an estimated Rs1.737 trillion in total, while Rs145 billion has been sought for the next fiscal year, according to the documents.

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Similarly, the Diamer Bhasha Dam project may take 46 years to complete under the current funding pattern. The total cost of the project has been estimated at Rs1.049tr, while a proposed allocation of Rs93.77bn has been recommended for the upcoming fiscal year.

The Mohmand Dam project, estimated to cost over Rs337bn, is expected to take 14 years to complete. The ministry has proposed an allocation of Rs58bn for the project in the next budget.

The documents also highlighted significant delays in a number of irrigation and water supply schemes.

The Kachhi Canal project could take 112 years to complete in line with the existing funding pattern, while Karachi’s K-IV Greater Water Supply Project is expected to be completed in 10 years.

The K-IV project, aimed at addressing water shortages in Karachi, requires over Rs31.75bn in the next fiscal year, while its total cost has crossed Rs175bn.

According to the documents, the Nolang Dam project may take 122 years to complete under current financial allocations.

The Chashma Right Bank Canal project could require as long as 1,891 years for completion, while a Rs194bn flood protection plan may take an estimated 972 years if funding levels remain unchanged.

The disclosures come amid growing concerns over Pakistan’s water security and storage capacity. The issue has gained added attention since India put the Indus Waters Treaty in abeyance in May last year following a four-day conflict between the two countries.

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