The estimated cost of Mohmand Dam has increased by 115% over the past eight years, reaching Rs666 billion. Federal officials have largely attributed the increase to the depreciation of the Pakistani rupee since 2018.

The revised project cost was discussed at a meeting of the Central Development Working Party (CDWP). However, the forum did not reach a decision on the proposed revision. Officials said the meeting ran out of time before the matter could be concluded.

The latest cost estimate highlights the financial pressures facing major infrastructure projects in Pakistan. Currency depreciation can increase expenses for imported machinery, equipment and other construction requirements. However, the available information does not provide a detailed breakdown of the additional costs associated with Mohmand Dam.

Despite the rise in estimated expenditure, construction work on the project continues. Approximately 57% of the construction had been completed as of last month. The remaining work will be important for bringing the dam closer to its planned operational objectives.

Why Mohmand Dam Is Important

Mohmand Dam is a major water and power infrastructure project designed to address several needs. It aims to increase the country’s water storage capacity and support electricity generation. The project is also intended to provide drinking water to Peshawar.

Additional water storage can help improve water management and support the availability of supplies during periods of changing rainfall. Electricity generated by the dam is expected to contribute to the country’s energy resources. Its planned drinking water supply also makes the project important for Peshawar’s residents.

Pakistan faces continuing challenges involving water availability, energy demand and the management of existing resources. Large dam projects form part of the infrastructure used to address these concerns. Their timely completion and effective operation remain important to achieving their intended benefits.

Cost Revision Awaits Decision

The proposed revision to Mohmand Dam’s estimated cost remains unresolved following the CDWP meeting. Federal officials said the forum could not complete its consideration because time had run out. A final decision on the revised estimate was therefore not announced in the available information.

The increase from the earlier estimate reflects the financial challenges associated with long-term development projects. Changes in currency values can affect construction budgets, particularly when projects depend on imported materials or equipment. Authorities have identified rupee depreciation since 2018 as a major factor behind the increase.

With construction reported at around 57% completion, further progress will be needed before the project can deliver its planned benefits. The revised cost and the remaining construction schedule will be important factors in its continued development.

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Mohmand Dam is expected to play a role in improving water storage, generating electricity and supplying drinking water to Peshawar. Its final cost and completion timeline remain key issues as the project moves forward.