ECC Approves Rs 275 Billion for Dams and Water Projects as Costs Surge
The ECC approved Rs 275 billion for six water projects including Diamer-Bhasha, Dasu and Mohmand, whose combined cost has risen to about Rs 3.5 trillion.
Rs 275 billion water projects funding: the Economic Coordination Committee (ECC) approved Rs 275 billion in supplementary grants for six water projects, including the Diamer-Bhasha, Dasu and Mohmand dams, at its meeting on 4 November 2026. The approval came as the combined cost of the three big dams has risen by about 176% to roughly Rs 3.5 trillion, according to Energy Update.
The ministry had sought nearly Rs 450 billion; the release of the approved Rs 275 billion will depend on revenue collection, a finance ministry official said.
Rs 275 billion water projects: where the money goes
| # | Project |
|---|---|
| 1 | Diamer-Bhasha Dam |
| 2 | Dasu Hydropower Project |
| 3 | Mohmand Dam |
| 4 | Chashma Right Bank Canal |
| 5 | Greater Karachi Bulk Water Supply Scheme (K-IV) |
| 6 | Kachhi Canal |
The project-wise split of the Rs 275 billion was not published.
Dam costs have jumped
| Project | Earlier cost | Revised cost | Increase |
|---|---|---|---|
| Diamer-Bhasha Dam | about Rs 480 bn | Rs 1.12 tr | +Rs 642 bn (134%) |
| Dasu Hydropower | Rs 486 bn | Rs 1.74 tr | +Rs 1.254 tr (about 260%) |
| Mohmand Dam | Rs 310 bn (2018) | Rs 666 bn | +Rs 356 bn (115%) |
| Total (3 dams) | about Rs 1.28 tr | about Rs 3.5 tr | about 176% |
Officials blamed the rupee’s fall against the dollar, higher fuel prices and costlier construction materials. A revised project document (PC-I) for Diamer-Bhasha has been sent to ECNEC for approval. Mohmand Dam was approved in 2018 with a completion target of September 2025, which has been missed.
Why funding depends on revenue
The federal government is short of cash. The FBR missed its target by about Rs 95 billion in the first four months of the fiscal year, and the centre has asked provinces for Rs 1.035 trillion in cash support. A finance ministry official said the water funds will be released as revenue comes in, which means project work could still slow if collections fall short.
What these projects mean for Pakistan
- Water storage: Pakistan can store only about a month of river flows. Diamer-Bhasha and Mohmand add badly needed reservoir capacity for farming and flood control.
- Cheaper electricity: Dasu, Diamer-Bhasha and Mohmand will add large amounts of hydropower, which is cheaper to run than imported fuel.
- Karachi water: the Greater Karachi Bulk Water Supply Scheme is meant to ease the city’s chronic water shortage.
- Agriculture: the Kachhi and Chashma Right Bank canals extend irrigation in Balochistan and Khyber Pakhtunkhwa.
Rs 275 billion water projects: what to watch next
- ECNEC approval: the revised Diamer-Bhasha cost estimate still needs ECNEC’s approval before the higher budget becomes official.
- Actual releases: because the money is tied to revenue, check the Finance Division’s monthly releases to see how much really reaches each project.
- Completion dates: Mohmand has already missed its 2025 target, so new completion dates for all three dams will show whether the extra money speeds up work.
- Electricity tariffs: higher project costs can eventually feed into the cost of hydropower, though it remains much cheaper than imported fuel over the life of a dam.
Other decisions at the same ECC meeting
The ECC also approved restrictions on importing camera smart glasses, about Rs 84 billion for defence-related projects, Rs 1 billion to supply gas to villages near gas fields, continued gas supply to two urea plants until 31 December, and Rs 15.6 billion moved to the PM’s Austerity Fund.
More business news: Saudi $3 billion deposit rollover and SBP foreign exchange reserves.
Frequently asked questions
How much did the ECC approve for water projects?
Rs 275 billion in supplementary grants for six projects, on 4 November 2026.
What is the new cost of Diamer-Bhasha Dam?
About Rs 1.12 trillion, an increase of Rs 642 billion.
Why have dam costs increased?
Mainly because of the weaker rupee, plus higher fuel and construction material prices.
Sources: Radio Pakistan (ECC decisions, 4 November 2026); Energy Update (5 November 2026).
