The federal government has conditionally approved the revised cost of the Dasu Hydropower Project, which has skyrocketed by 240% to Rs1.74 trillion. The approval came during a high-level ECNEC meeting chaired by Deputy Prime Minister Ishaq Dar. The move is intended to support fresh loan negotiations with foreign lenders, including the World Bank.
The project, initially valued at Rs479 billion, will now cost nearly $6.2 billion, making it one of the most expensive energy ventures in Pakistan’s history. The government plans to secure $1 billion in new loans from the World Bank, alongside Rs350 billion in domestic commercial borrowing. A helicopter will also be procured to ensure the safety of Chinese contractors working on-site.
An inquiry into the cost escalation pointed fingers at multiple stakeholders including Chinese contractors, Wapda, and the Planning Commission. Security measures added Rs48 billion to the cost, but made up just 3.8% of the overall hike. The Planning Commission will still vet the final cost through a committee review.
In addition to the Dasu project, ECNEC also approved the construction of a new trade post at the Wagah border with India and sanctioned Rs15 billion for 30 anti-smuggling checkpoints across key areas, including Balochistan and along the River Indus.
