PR No. 225

Ahsan Iqbal Raises Serious Concerns Over Delayed PC-I, Cost Escalation and Weak Management of Diamer Basha Dam Project

Islamabad: May 21, 2026

The Central Development Working Party (CDWP) met today under the chairmanship of the Federal Minister for Planning, Development & Special Initiatives and Deputy Chairman of the Planning Commission, Ahsan Iqbal.

A revised project related to Ministry of Water Resources came under the discussion namely “ Diamer Basha Dam Project - Dam Part with Reflection of Helicopter Cost ” worth Rs. 485.006 billion referred to ECNEC for further consideration.

Deputy Chairman Planning Commission Ahsan Iqbal, while discussing the Diamer-Bhasha Dam project, expressed serious concern that the revised PC-I of the project had not been submitted for the last six years despite cost of the project had increased manifold from original approved cost of Rs 480 billion in 2018, which shows poor project management capacity. He directed that new Chairman WAPDA should ensure that the project will be managed in professional manner.

He further observed that since 2020, concerns had repeatedly been raised by him during standing Committee on Planning meetings regarding the escalating cost of the project. However, despite the passage of several years, WAPDA had still not submitted the revised PC-I. He emphasized that this reservation should be made part of the official record.

CDWP allowed revision of PC-1 related to helicopter purchase purely on security grounds with direction that revised PC-1 for dam component should be submitted without further delay.

The Deputy Chairman of the Planning Commission Ahsan Iqbal further questioned whether a holistic, integrated, and professional project design and management system for mega projects existed in WAPDA. WAPDA should undertake necessary steps to improve its project management capacity.

While discussing another revised project related to Ministry of Water Resources namely “ Tarbela 5th Extension Hydropower Project” worth Rs. 316.411720 billion referred to ECNEC for further consideration.

While discussing the Tarbela 5th Extension Hydropower Project , Federal Minister for Planning, Development and Special Initiatives and Deputy Chairman Planning Commission Ahsan Iqbal expressed serious concerns over the project’s management, transparency, and oversight mechanisms. He observed that the professional capability of the concerned staff appeared questionable, as Ministry of Water has also pointed out shortcomings in its inquiry report.

The Minister questioned the process through which local consultant with dubious record was engaged for the project, stating that an international consultant had initially been hired and subsequently replaced by a local company in a non-transparent manner. He directed the concerned authorities to share the inquiry report with the Ministry for detailed review.

Highlighting the financial implications of the project, the Minister noted that the project was originally estimated at Rs. 82 billion, whereas expenditures had already crossed Rs. 140 billion.

The Minister further directed that all observations regarding mismanagement, weak due diligence, and the performance of contractors and consultants be formally placed before the Executive Committee of the National Economic Council (ECNEC) by an inquiry committee headed by Member Infrastructure. He directed the committee to thoroughly examine these issues, review the observations raised during the meeting, and submit a comprehensive report to ECNEC.

He further directed the authorities concerned to develop a robust institutional framework to prevent such shortcomings in future projects, emphasizing that organizations like WAPDA must uphold the highest standards of professionalism, accountability, and project governance.

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