Senate flags $3.5 billion funding gap in Diamer-Bhasha Dam, warns of rising flood risks

The Senate Standing Committee on Water Resources on Thursday drew attention to a $3.5 billion financing gap in the Diamer-Bhasha Dam project, warning that delays in completing the reservoir, coupled with continued encroachments in floodplains, are heightening flood threats across the country.

During the briefing, Wapda officials told the committee that work on the Diamer-Bhasha Dam has reached 21 per cent completion. However, an additional $3.5 billion is required to finish the project. The dam is currently being funded through the Public Sector Development Programme, while efforts are underway to secure further financial resources. Lawmakers were also informed that the Dasu Hydropower Project stands at 30 per cent completion.

On flood management, the Federal Flood Commission reported that Punjab has cleared 2,625 encroachments from waterways, but 83 structures remain in place despite repeated directions from parliamentary committees over the past year. SUPARCO’s satellite assessment confirmed progress in removal operations. Committee members urged provincial authorities to strengthen enforcement of zoning regulations and stop new construction in high-risk flood zones.

Secretary Water Resources Syed Ali Murtaza also briefed the panel that India has termed the 1960 Indus Waters Treaty “suspended.” Pakistan, however, maintains that the treaty continues to be legally valid, and international arbitration bodies have not declared it void.

The committee was further informed that consultations on a proposed Dam Safety Bill have concluded. The draft legislation will now be presented to the federal cabinet to enhance regulatory oversight of dams across the country.