The cost of Pakistan’s Tarbela 5th Extension Hydropower Project has reportedly surged by a staggering 282 percent, rising from the originally approved Rs. 82 billion to an estimated Rs. 316 billion.
The sharp increase has raised serious questions about project management, financial planning, transparency and oversight.
The escalation is particularly concerning as the project has also faced delays and structural setbacks at the construction site.
Despite the substantial increase in expenditure, the Executive Committee of the National Economic Council (ECNEC) approved the revised project cost.
However, questions remain over what factors led to the massive increase and whether the additional financial burden could have been avoided through better planning and supervision.
Concerns have also been raised about the project’s financing and repayment mechanism. With the revised cost now standing at Rs. 316 billion, stakeholders are seeking greater clarity on how the additional funds will be arranged and ultimately repaid.
The dramatic cost escalation highlights broader concerns surrounding the management of major public-sector infrastructure projects, particularly when delays and technical issues result in significantly higher costs for the national exchequer.
The Tarbela 5th Extension is intended to increase hydropower generation capacity and strengthen Pakistan’s energy supply.
However, the extraordinary rise in its projected cost has intensified scrutiny over whether the project is being delivered efficiently and whether adequate accountability mechanisms are in place.
