The Power Division and WAPDA Chairman Lt. Gen. (R) Muhammad Saeed have rejected a report claiming that the government had dropped the 4,500 megawatt power generation component of the Diamer Bhasha Dam, saying no such decision has been taken and the project remains committed under Pakistan’s Indicative Generation Capacity Expansion Plan. In a post on X on August 29, the Power Division described the report by Brief.pk as “fake news” and said the Diamer Bhasha Dam generation component is included in both existing and future IGCEP documents.

In a post on X on August 29, the Power Division described the report by Brief.pk as “fake news” and said the Diamer Bhasha Dam generation component is included in both existing and future IGCEP documents.

The report had claimed that the government had removed the power generation component from the ongoing construction schedule and would initially build only the storage dam, with the 4,500 MW hydropower component to be developed at a later stage. It cited what it described as a leaked Economic Affairs Division document and a source familiar with the decision-making process.

The report further claimed that the government’s position was based on excess generation capacity, rapid growth in rooftop solar, weaker electricity demand and the cost of power evacuation infrastructure. It also alleged that lobbying by independent power producers had influenced the decision.

The Power Division rejected the alleged link with IPPs, saying that “the new IPPs business has permanently closed in Pakistan after the establishment of a free electricity market by the present government.” It added that attempts to link IPPs with the Diamer Bhasha project and sensationalize the issue were based on “fake assumptions.”

WAPDA Chairman Lt. Gen. (R) Muhammad Saeed, in a separate tweet on X, said, WAPDA, as the executing agency for the project, assures the public that no decision had been taken by the federal government to drop the power generation component.

Saeed said Diamer Bhasha is a multipurpose project with a gross water storage capacity of 8.1 million acre feet and an installed power generation capacity of 4,500 MW. The project has the potential to generate 18.1 billion units of clean and green electricity annually, according to the WAPDA chairman.

He said the power generation component is a committed project under the IGCEP and was approved at a cost of Rs. 1.424 trillion in April 2023. The approved power component comprises four major packages: MW 2, Hydromech 2, Electromech 1 and Electromech 2.

According to Saeed, WAPDA remains committed to starting civil works under the MW 2 portion of the power generation component by June 2027. Work on Electromech 1 is expected to follow by the end of December 2027.

The original report had argued that postponing the power component could create serious technical and financial risks because critical infrastructure needed for future electricity generation would be more difficult and costly to build after the reservoir is filled.

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