Diamer Bhasha Dam Update: Is Pakistan Really Abandoning 4500 MW Power Generation Project?
ISLAMABAD – A fresh controversy surrounding Pakistan’s multi-billion dollar Diamer Bhasha Dam erupted after social media accused the government of abandoning the project’s 4,500 MW hydropower plan.
The controversy escalated when a social media post alleged that the government decided to build the dam as a water storage project while skipping power generation facilities. The Post reportedly relied on what it described as a leaked internal document related to the Economic Affairs Division.
The misleading claims raised questions over the future of one of Pakistan’s most important water and energy projects. Amid conflicting statements, the Ministry of Economic Affairs strongly rejected reports that Pakistan had decommissioned the dam’s power generation section, terming it as fabrication.
The official planning picture tells a different story. Diamer Bhasha is associated with a planned generation capacity of 4,500 MW, and the available Power Sector Planning documents for 2025-35 place the project within Pakistan’s future power generation framework.
Project power output requirements are also reflected in long-term transmission planning, indicating that hydropower facilities are part of a broader national power sector blueprint.
The controversy gained momentum when a foreign website published a report alleging that Pakistan had decided to go ahead with the dam without the power generation component. The report reportedly cites an allegedly leaked document as the basis for this claim.
The decision to abandon the planned generation of thousands of megawatts for this massive project would mark a major shift in Pakistan’s energy policy. Such a move would normally be expected to leave a clear documentation trail through the relevant ministries, planning authorities or power sector bodies. No such publicly verifiable trail has so far emerged.
The Division of Economic Affairs has also been prominent in this conflict, but its role needs to be carefully understood. This division deals with matters related to external economic assistance and foreign financing. Progress involving project financing does not automatically mean that the underlying project has been canceled or that one of its key components has been removed. And, financing arrangements and project scope are not necessarily the same thing.
A change, delay or dispute involving funding cannot, by itself, be construed as an official decision to terminate the project’s hydropower facilities.
The allegations have spread quickly on social media, with accounts labeled as politically connected or foreign fueling the narrative of the cancellation. But repetition does not turn an allegation into a confirmed fact. The Ministry of Economic Affairs directly disputed the claim, while available national power planning information continued to reflect a component of 4,500 MW.
Diamer Bhasha Dam is more than any other infrastructure project. This extends to water storage, power generation and Pakistan’s long-term economic and energy planning. The proposed 4,500 MW generation capacity makes the project particularly important for a country that is facing constant pressure on its electricity system.
Any decision to eliminate this capacity will have major implications for future electricity planning. This is why cancellation claims require more than anonymous sources, social media posts or alleged leaks.
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