Chairing a high-level meeting on hydropower projects, Prime Minister Shehbaz Sharif directed relevant ministries, entities, and district administrations to put in place a mechanism to fast-track strategic hydropower projects, with immediate focus on the Diamer Basha Dam Project, and to extend full facilitation for expediting Water and Power Development Authority (WAPDA) projects, Business Recorder reported.
The Ministry of Planning, Development and Special Initiatives, Economic Affairs Division (EAD), Ministry of Finance, and Ministry of Water Resources were directed to ensure uninterrupted financing through PSDP grants, rupee cover, and other funding avenues for timely completion of Diamer Basha, Mohmand Dam, and Dasu Hydropower Project.
According to the report, development partners remain reluctant to commit the required $10 billion for Diamer Basha, $8 billion for the project and $2 billion for transmission infrastructure, despite its role in water storage and power generation. The project is expected to add 6.4 million acre-feet of storage and generate 18.1 billion units of electricity annually.
To meet funding needs over the next five years, the prime minister directed the Ministry of Planning to ensure adequate PSDP allocations and timely releases. For commercial financing, arrangements of $500 million per year over seven years were approved to bridge the financing gap, with immediate implementation ordered.
The meeting decided to fast-track processing of the revised PC-I for Diamer Basha, covering the dam and land acquisition and resettlement, by December 31, 2025. District administrations were instructed to demolish illegal constructions within the reservoir area by December 31, 2025.
The National Grid Company (NGC) and Power Division were directed to finalise the power evacuation plan, while the Power Division will coordinate with the Ministry of Finance and EAD to arrange financing.
For commercial funding, preference will be given to concessional long-term financing from multilateral and bilateral sources, international capital markets, and sovereign wealth funds, with the Ministry of Finance and EAD leading the process. The prime minister also directed that financial closure of future projects must be completed before commencement.
On Mohmand Dam, the Ministries of Finance and Planning, along with EAD, were directed to ensure sufficient PSDP funding, while the revised PC-I will be completed on a fast-track basis.
The Ministry of Water Resources, WAPDA, and chief secretaries of the four provinces were instructed to develop a cost-sharing model, including options such as capital surplus, water cess, and water pricing, by March 31, 2026. As an interim measure, provinces will be requested to contribute proportionately.
The governments of Khyber Pakhtunkhwa and Gilgit-Baltistan were directed to facilitate land acquisition and resettlement and manage local issues, with protection of tenure for commissioners, deputy commissioners, and SPs in districts hosting strategic projects.
The meeting also directed the Ministry of Water Resources, Ministry of Law and Justice, and WAPDA to revive the WAPDA Act, 1958 by December 31, 2025, restoring accountability provisions, including termination for inefficiency or misconduct.
Work on rehabilitation of the 969 MW Neelum Jhelum Hydropower Project was ordered to be revived immediately, with technical, financial, and administrative actions expedited.
The Ministry of Water Resources, Power Division, NGC, NEPRA, and WAPDA were instructed to ensure integration of WAPDA’s priority projects into the Integrated Generation Capacity Expansion Plan (IGCEP) 2035 and beyond.
The Gilgit-Baltistan administration was directed to complete acquisition of reservoir land at Gini and hand over possession to WAPDA, cancel leases within the reservoir area, and prevent interference in pozzolan-related matters to ensure uninterrupted material supply for Diamer Basha and Dasu projects. WAPDA was also directed to pay royalty to the GB government in accordance with the law.
Planning Minister Ahsan Iqbal was tasked with convening a meeting to resolve the boundary dispute between Khyber Pakhtunkhwa and Gilgit-Baltistan by December 31, 2025.
The meeting approved completion of the Harban Das Model Village as per the 2025 agreement and rehabilitation of the Chilas airfield to support movement of personnel and foreign experts to project sites.
