Power Division Rejects Claim Diamer-Bhasha Power Project Was Cancelled
Pakistan's Power Division has rejected claims that the government cancelled the electricity-generation component of the Diamer-Bhasha Dam, saying the 4,500-megawatt hydropower project remains part of the country's official electricity planning framework. The clarification came on Saturday, August 29, after a report raised questions about whether authorities intended to proceed with the reservoir while postponing the associated power facilities.
Diamer-Bhasha Dam is being developed on the Indus River near Gilgit-Baltistan and is one of Pakistan's major water and energy infrastructure projects. According to official project specifications cited in the report, the dam is designed for gross water storage of about 8.1 million acre-feet and an installed electricity-generation capacity of 4,500MW, giving it significance for both water management and the national power system.
The controversy followed a report by the publication Brief, which said a government document from the Economic Affairs Division indicated that authorities were considering prioritising the water-storage portion of the project while delaying power generation and transmission infrastructure. The report linked that position to Pakistan's existing generation capacity, changing electricity demand, rapid expansion of rooftop solar systems and financing constraints affecting major power-sector investments.
Responding publicly, the Power Division rejected the central claim and said the generation component of Diamer-Bhasha remains a committed project under both existing and future versions of Pakistan's Indicative Generation Capacity Expansion Plan, or IGCEP. The IGCEP is the framework used to assess and plan additions to the country's electricity-generation capacity over the longer term.
The division also disputed suggestions that independent power producers were responsible for any move against the project's hydropower component. It said Pakistan's power-market structure had changed and rejected attempts to connect independent power producers with an alleged cancellation of the Diamer-Bhasha generation facilities. The government's response directly challenges the interpretation presented in the report rather than announcing any reduction in the dam's planned electricity capacity.
The issue carries wider importance for Pakistan because Diamer-Bhasha is intended to serve two strategically important needs: expanding water-storage capacity and adding large-scale hydropower generation. Any significant alteration to either component could affect long-term electricity planning, infrastructure financing and the country's management of Indus River water resources. The Power Division's clarification indicates that, at present, the government continues to include the hydropower component in its formal generation-expansion plans.
The dispute also highlights the scrutiny surrounding Pakistan's future power requirements as consumer demand, renewable-energy adoption and the financial condition of the electricity sector continue to influence investment decisions. Large projects require coordination between water, power, transmission and financing authorities, making official planning documents important indicators of whether proposed generation capacity remains active.
Attention will now remain on future IGCEP documents and official project decisions for confirmation of timelines, financing arrangements and implementation of the generation and transmission components. Unless the government issues a formal revision to those plans, the Power Division's latest position is that the Diamer-Bhasha hydropower component has not been cancelled and remains part of Pakistan's planned electricity-generation portfolio.